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Ethereum’s transition to a proof-of-stake (PoS) consensus mechanism has marked one of crypto’s most historic upgrades. More than 30 million ETH has been staked to secure the network since staking went live in late 2020.
As a result, users are now spoilt for choice when deciding how and where to stake your ETH.
Luckily, we’ve outlined everything you need to know about the world of ETH staking to inform your decision making. Read on to discover where to stake Ethereum to earn staking rewards, regardless of your technical proficiency.
Ethereum can be staked independently via the network’s smart contracts. This approach involves locking up 32 ETH to run a validator node, which validates transactions. On top of this, solo stakers must maintain 100% uptime and purchase specific hardware to run a node.
These high barriers to entry makes it difficult for ordinary users to participate. Fortunately, liquid staking solutions have emerged as a far more accessible alternative for users.
Despite the 32 ETH requirement, many power users choose to run their own nodes to earn increased rewards. Setting up your own node is highly resource intensive, and requires significant technical expertise.
Solo stakers should have dedicated PCs or servers to run their nodes. Although running a node does not require a lot of processing power, a robust machine helps to minimize downtime. Additionally, users should have a strong and stable internet connection. As nodes are penalized for downtime, subpar hardware can cost validators significant rewards.
To set up the node, users need to lock 32 ETH in the Ethereum 2.0 Deposit Contract. Finally, solo stakers install an Ethereum 2.0 client and register their node. Live nodes require constant maintenance to stay in sync with the rest of the network. However, this effort should yield larger rewards than pure liquid staking methods.
Liquid staking was first pioneered by Lido Finance in December 2020. This approach allows users to deposit as little as 0.01 ETH. Deposited ETH is sent to staking pools to generate yield for users.
Liquid staking is a fairly straightforward process with a host of benefits:
This design empowers anyone to participate in ETH staking by drastically lowering major barriers to entry. Origin, Lido, and Rocket Pool are some of the top choices in the realm of liquid staking.
At present, more than 25% of ETH’s supply has been staked to the network. This figure is far lower than other PoS blockchain networks, which often see more than 40% of native tokens staked. With demand for ETH staking growing rapidly, far more ETH is likely to be staked moving forward.
While this translates to increased network security, it also means that stakers receive lower yields. This is because the same pool of rewards is being shared between an increasing number of stakers.
Origin Ether (OETH) has emerged to solve the issue of yield compression. The protocol is backed 1:1 by ETH reserves, optimizing yield between Ethereum staking and audited DeFi strategies. Users can deposit ETH to mint OETH, which can be used freely in DeFi.
OETH earns enhanced yield through providing liquidity on Curve to farm rewards tokens, as well as through SSV token incentives from its integration with ssv.network's distributed validator technology (DVT).
This yield is automatically distributed to OETH holders’ wallets, saving users further time and gas costs. The novel platform offers a seamless, user friendly experience with robust security and constantly evolving mechanics.
Ethereum staking is a mechanism used to secure the blockchain. Ethereum initially used a proof-of-work (PoW) design to validate new transactions. With PoW, miners competed to solve complex algorithms and confirm new transaction blocks to earn ETH rewards. However, this approach was highly exclusive and required tremendous energy expenditure.
In 2020, ETH moved to proof-of-stake by merging to the Beacon Chain. Now, all users can participate in securing the network by staking ETH to validator nodes. This mechanism is inclusive, lightweight, and carries a low carbon footprint.
Staking Ethereum can be an incredibly rewarding experience. As the leading smart contract network, Ethereum is at the forefront of blockchain innovation. Staking ETH allows you to take part in securing the network’s future, while also enjoying robust passive returns.
While centralized exchanges offer their own liquid staking solutions, these entities are far less transparent than DeFi competitors. CeFi’s many failings were exposed in 2022, as users lost billions of dollars from fraudulent practices.
In contrast, DeFi allows users to retain full control over their capital and monitor exactly how funds are being managed. Platforms like OETH offer even greater autonomy by handing governance rights to users. Users who stake Origin DeFi Governance (OGV) receive voting rights in the form of veOGV, allowing them to create and vote on proposals. At the same time, stakers earn double-digit APYs from a share of OETH’s transaction fees and token emissions.
Just like any other investment, staking Ethereum carries risk. However, this shouldn’t dissuade new users from participating. Conducting thorough research and using trusted platforms minimizes potential risks for stakers.
Origin Ether has been rigorously audited by the likes of OpenZeppellin and TrailofBits to ensure protocol security.
Discover the OETH ecosystem:
Running a validator node on your own requires a 32 ETH deposit. However, using liquid staking services allows you to stake as little as 0.01 ETH.
You can redeem ETH staked to liquid staking platforms at any time. Additionally, these platforms issue LSTs, which allow you to retain full control over your capital.
Origin Ether (OETH) offers some of the highest ETH staking yields in the space, even at scale. The platform’s seamless usability, security, and transparency makes it a far better choice than cryptocurrency exchanges.
