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As the leading smart contract blockchain, the Ethereum network forms a vital component of Web3.
Ethereum was initially designed as a proof-of-work network. However, this method of validating transactions carried several issues. Specifically, proof-of-work was energy intensive. Miners had to use lots of computing power to verify new transactions, causing congestion and a large carbon footprint.
As a result, Ethereum adopted a proof-of-stake consensus as the network merged to the beacon chain. This design allows anyone to participate in securing the network by locking up their ETH.
Users can stake 32 ETH to run a validator node, which confirms new transactions. Alternatively, users can deposit as little as 0.01 ETH to liquid staking services to participate. In exchange, stakers earn rewards from a share of network transaction fees.
Ethereum staking has seen tremendous demand since launching in late 2020. At present, the network boasts more than 30 million ETH staked across more than 900,000 ethereum validators. At the time of writing, this translates to more than $90 billion in staked ETH.
Impressively, liquid staking currently accounts for nearly half of the total amount of ETH staked. The rapidly growing sector commands 15+ million ETH in total value locked.
Total Value Locked in ETH liquid staking (DeFiLlama)
2023 has marked another momentous year for Ethereum. April’s Shanghai upgrade allowed stakers to withdraw their ETH for the first time.
Naturally, this raised concerns regarding outflows from staking. However, these concerns were quickly dispelled. Demand for ETH staking has only grown since the upgrade as more traders look to secure rewards.
In fact, over 10 million ETH has been staked since Shanghai went live in April.
ETH staking net flow since Shanghai (Dune)
At present, over 25% of ETH’s total supply is being staked to secure the network. While impressive, this is a far lower figure than other proof of stake networks. Competing chains generally see more than 40% of native digital assets staked.
As adoption increases and the network expands, it’s likely that the amount of ethereum staked will increase considerably. This is important as a higher percentage of staked ETH translates to more robust network security.
While the network benefits from increased staking, this invariably reduces yield for stakers. As more ETH is staked, the same pool of rewards is split between more users.
Fortunately, a number of innovative platforms have emerged to generate higher staking rewards for users. Origin Ether (OETH) has disrupted ETH staking with a groundbreaking offering. Users can mint OETH by depositing ETH or wrapped ETH, enabling them to earn yield higher than what's offered from liquid staking alone.
OETH maintains a peg to ETH, meaning that stakers can use it freely in DeFi. At the same time, deposited collateral is deployed to Ethereum's beacon chain, as well as in liquidity provision strategies via its AMO. This yield is automatically distributed to holders’ wallets.
As a result, OETH users retain full control over their capital. At the same time, holders earn higher yield than simply holding a traditional LST.
The amount of rewards earned by staking ETH vary according to the method of staking. In general, liquid staking platforms offer users APYs of 3-5%. While solo staking offers higher rewards, this approach requires a large investment and constant maintenance.
Thanks to Origin Ether’s incisive strategies, OETH is able to deliver far higher yield for holders. Despite scaling rapidly, OETH offers APYs significantly higher than other liquid staking tokens. Additionally, users can look forward to a seamless experience and robust security.
Discover how OETH can help you stack ETH faster: app.oeth.com
The network currently boasts more than 31 million ETH staked. This figure accounts for over 26% of ETH’s total supply.
Ethereum staking can be a highly rewarding experience. Using a platform like Origin Ether empowers you to earn outsized rewards without dealing with high technical barriers.
