- Cake Group announced receiving the first Ethereum staking rewards from DeFiChain.
- The team will swap the rewards into DeFiChain’s native token, DFI, and send them to a burn address.
- DFI trades at $0.2823, with a 16.04% increase over the past week.
Julian Hosp, CEO of Cake Group and Bake, took to X to make a significant announcement for the DeFi community. In particular, Hosp announced its team has received the first Ethereum staking rewards from DeFiChain, a decentralized finance platform on the Bitcoin blockchain.
According to the CEO, the team will swap the reward into DeFiChain’s native token, DFI. After the swapping, the team will send the token to a burn address by the Bake team.
First #Ethereum Staking Rewards from @defichain collateral. Will be swapped into $DFI and then sent to the burn address by the @bake_io team. Account Statement will be posted every Monday together with the burn. This is just an ops flow test. Expect around 5-10 $ETH every week at… pic.twitter.com/89zZSJ7LtS— Dr. Julian Hosp (@julianhosp) August 25, 2023
Notably, the burn address is an exceptional wallet no one can access. It implies the DFI tokens from the Ethereum staking rewards will be permanently out of circulation. The team hopes the technique helps increase DFI’s value by making it more scarce.
Meanwhile, Hosp assured the community that it will make an account statement available every Monday. The statement will come alongside the details of the burn process. He emphasized that this initiative is presently undergoing an operational flow test.
Since it is in a test phase, enthusiasts can anticipate weekly yields ranging between 5 to 10 Ethereum (ETH) tokens. In response to the update, a DFI enthusiast, Bacon, shed more details concerning the Bake team endeavor.
Bacon highlighted several impactful steps the Bake team has undertaken. It includes implementing Dollar-Cost Averaging (DCA), a recurring buy option with minimal fees exclusive to DFI.
Furthermore, the tweet highlighted the massive promotion the team is running for DCA alongside introducing three new special DeFiChain Improvement Proposals (DFIPs). He also mentioned the strategic burning of DFI using accumulated Polkadot (DOT), Solana (SOL), and Polygon (MATIC).
According to data from CoinMarketCap, DFI currently trades at $0.2823, with a 16.04% increase over the past week.
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