Zucchini is mild in flavor and contains tons of water, so when you shred it and fold it into a cake batter, as it bakes, that excess water will seep into the cake and make your cake extra moist without affecting the overall flavor.
The little additional water will also weaken some of the gluten formation in the flour, creating a more tender crumb.
Adding watery zucchini to a traditional pound cake would produce larger steam holes, and create a texture closer to a muffin or quickbread.
While zucchini provides a moist crumb to a fluffy cake recipe, added moisture will shorten a cake's shelf life.
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