Ethereum (ETH) (7-12% APY)
Staking PoS Ethereum 2.0 (ETH)
Last updated
Staking PoS Ethereum 2.0 (ETH)
Last updated
Ethereum is a decentralized blockchain with smart contract functionality. Ether (Abbreviation: ETH;[a] sign: Ξ) is the native cryptocurrency of the platform.
Among cryptocurrencies, ether is second only to bitcoin in market capitalization. It is open-source software.
Ethereum was conceived in 2013 by programmer Vitalik Buterin. Additional founders of Ethereum included Gavin Wood, Charles Hoskinson, Anthony Di Iorio and Joseph Lubin. In 2014, development work began and was crowdfunded, and the network went live on 30 July 2015.
Ethereum allows anyone to deploy permanent and immutable decentralized applications onto it, with which users can interact.
Decentralized finance (DeFi) applications provide financial instruments which do not directly rely on financial intermediaries like brokerages, exchanges, or banks.
This facilitates borrowing against cryptocurrency holdings or lending them out for interest.
Ethereum also allows users to create and exchange non-fungible tokens (NFTs), which are tokens that can be tied to unique digital assets, such as images.
Additionally, many other cryptocurrencies utilize the ERC-20 token standard on top of the Ethereum blockchain and have utilized the platform for initial coin offerings.
On 15 September 2022, Ethereum transitioned its consensus mechanism from proof-of-work (PoW) to proof-of-stake (PoS) in an upgrade process known as "the Merge". This has cut Ethereum's energy usage by 99%.
Staking Ethereum: Unlocking the Power of Proof of Stake
ETH staking is the process of holding onto your Ether in a wallet to earn staking rewards. The more Ether you stake (ETH staked), the higher your rewards will be. Rewards are paid out as a percentage of the total Ether staked, and vary depending on the network's current status.
The process of staking Ethereum involves users locking up a specific amount of Ether in a smart contract, known as a staking contract, which allows them to become nominators of the network.
Passive Income: Staking Ethereum alers the opportunity to earn a passive income. Nominators (stakers) are rewarded with additional Ethereum for their participation in securing and maintaining the network. The more Ether staked, the higher the potential returns.
This is a method of securing the Ethereum network that relies on coin holders to help validate transactions. In order to participate in proof of stake, you'll need to first transfer your Ether to a staking wallet. Once your Ether is in the wallet, you'll need to enable staking and then simply wait for rewards to start rolling in.
That's it! Proof of stake is a quick and easy way to help secure the Ethereum network and earn rewards.
This is a method of securing the Ethereum network that relies on coin holders to help validate transactions. In order to participate in proof of stake, you'll need to first transfer your Ether to a staking wallet. Once your Ether is in the wallet, you'll need to enable staking and then simply wait for rewards to start rolling in.
That's it! Proof of stake is a quick and easy way to help secure the Ethereum network and earn rewards.
Slashing is quite a rare occurrence given the serious penalties if it does take place. As a user, slashing is something to take note of but not to be scared of. The majority of the slashing risk can be avoided through staking with a reputable staking provider. To select a safe and reliable staking provider, view our FAQ on how to choose Ethereum staking providers.
Protocol security risks: There is an inherent risk that the protocol could contain unknown bugs, this risk applies not only to staking but also the investment in ETH in general.
XBANKING offers the most profitable and reliable staking services.
You can place tokens into staking with a yield of 7-12% APY, for a period of 30 to 365 days.
Staking Ethereum (ETH): https://xbanking.org
Slashing risk: When staking Ethereum, there is a risk of being partially or fully slashed if the validator misbehaves. This can happen if a validator double votes by attesting to two candidates for the same block, attests to a block that ‘surrounds’ another one (effectively changing history), or proposing and signing two different blocks for the same slot. If one of these actions are detected, 1/32 of the validators’ staked ether is immediately burned, then a 36 day removal begins. During this removal period the validators stake gradually bleeds away. At the mid-point (Day 18) an additional penalty is applied whose magnitude scales with the total staked ether of all slashed validators in the 36 days prior to slashing event. This means that when more validators are slashed, the magnitude of the slash increases. The maximum slash is the full effective balance of all slashed validators (i.e. if there are lots of validators being slashed they could lose their entire stake). On the other hand, a single, isolated slashing event only burns a small portion of the validator’s stake. This midpoint penalty that scales with the number of slashed validators is called the “correlation penalty”.
Withdrawals/Unbonding risk: Currently, a maximum of 16 withdrawals can be processed at a time in a single block, which translates to around 115,200 validator withdrawals per day, assuming no missed slots. However, the time you will need to wait to unstake your ETH can vary depending on the number of validators ahead of you in the withdrawal queue. It’s essential to keep in mind that investors will not be able to immediately sell their tokens but have to wait until the withdrawal process is completed before they can access their tokens. This is especially crucial to consider given the highly volatile nature of crypto markets. If you don’t intend to hold ETH long-term, it’s wise to keep your funds liquid.
Website: https://ethereum.org
Twitter: https://twitter.com/ethdotorg
Discord: https://discord.com/invite/CetY6Y4
Reddit: https://reddit.com/r/ethereum
Explorer: https://etherscan.io
Ethereum consensus specs: https://github.com/ethereum/consensus-specs
Annotated explanation on consensus specs. Ben Edgington, “Upgrading Ethereum”: https://eth2book.info
Explorer for validators, liquid staking providers and MEV relays. Rated Network Explorer: https://www.rated.network
Explorer for the consensus layer: https://beaconcha.in
