Ethereum 2.0 staking

Icecold

Limp Gawd
Joined
Jul 21, 2013
Messages
221
I couldn't find another thread about this here, so hopefully this is on topic for this subforum. Is anybody here staking with Ethereum 2.0 either solo or in a pool or has any input on it? From what I can tell, you have a couple options, but please correct me if I'm wrong on any of it-

Solo staking - requires 32 ETH (~$71k at current prices) and also an always on, always internet connected PC to run as a validator.

Pool staking - requires less ETH. May or may not require running a validator machine.

The main risk seems to be that your ETH is held up until the Ethereum 2.0 / proof of stake fully transitions. A lot of the staking pools seem fairly sketch, and solo staking you can lose some of your ETH if you don't hold up your end of it by having an always on reliable PC running as a validator. Any other risks or issues that I missed? It seems like if you could come up with the 32 ETH to solo stake / run a validator PC it could be pretty profitable to jump on while it's still early?
 

Icecold

Limp Gawd
Joined
Jul 21, 2013
Messages
221
It looks like Coinbase offers staking for Ethereum 2.0 now as well with no minimum staking amount requirements. I'm not sure if you make any less though by staking through there than running your own validator PC, though.(it lists "up to 6%" on Coinbase, I'm pretty sure I was seeing much larger ranges other places). If you're planning to HODL your eth for years I'm not sure there's a ton of downside to staking? It probably is also more secure than normally leaving crypto on an exchange since the staked eth isn't liquid until ethereum and ethereum 2.0 merge so I don't think somebody could get in your Coinbase account and send it all to somebody else?
 

SLee

Gawd
Joined
Oct 27, 2002
Messages
970
e main risk seems to be that your ETH is held up until the Ethereum 2.0 / proof of stake fully transitions.

One of the benefits of staking on pools and exchanges is many of them offer a method to unstake if you have an emergency need for ETH or funds. On staking, they convert it to another token that can be traded back for unstaked Ethereum, though not 1:1 until withdrawals are enabled on the protocol. On Binance the current ratio is ~0.925

It looks like Coinbase offers staking for Ethereum 2.0 now as well with no minimum staking amount requirements. I'm not sure if you make any less though by staking through there than running your own validator PC, though.(it lists "up to 6%" on Coinbase, I'm pretty sure I was seeing much larger ranges other places).

Right now, the APR is about 7.8% non-compounding for solo staking. The pools and exchanges usually take a fee for handling the validator though the non-US Binance claims that they offer staking with no fees on their side. The daily distributions that I'm getting from them are almost spot on.
 
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Icecold

Limp Gawd
Joined
Jul 21, 2013
Messages
221
I appreciate the info! I went ahead and signed up for the Ethereum staking waitlist on Coinbase just to see if they provide more information on how they handle it, historical returns, etc.. I know they don't currently have a way to sell or unstake your Ethereum, but it says they will at some point later this year. The small amount of Eth I currently have I don't have any intention of selling even if it goes way up or way down, so it sounds like staking would be a good idea once I figure out where my best option is. 7.8%(or even 6% at Coinbase) sounds great though.
 

Icecold

Limp Gawd
Joined
Jul 21, 2013
Messages
221
The staking waitlist for Ethereum 2.0 on Coinbase was just a few days, so I'm now signed up for it. As compensation for providing the validator, and protecting against any slashing, etc. they take a 25% commission on all staking rewards which is how they get to the 6% quoted. Reading their terms, one thing stood out to me as something I knew was a risk, but it was the first time I've seen it spelled out 100% anywhere -technically the transition to Ethereum 2.0 could never happen, and whatever eth you stake is then in limbo/gone forever. It seems pretty unlikely, but it is technically possible. 6% annual return for doing nothing other than holding on to the the eth for a year or two seems like a pretty solid deal though.
 

Icecold

Limp Gawd
Joined
Jul 21, 2013
Messages
221
If you are looking for a way to earn interest on your ETH check out https://nexo.io/earn-crypto
You can earn 5% if you do a 1 month fixed term.
Have you used that website? The interest rate seems too good to be true especially on fiat - what are they doing to be able to pay 10% interest on USD? If it's legit, it would definitely be great to have a savings account that pays 10% interest, but I feel like there's a catch I'm not seeing.
 

Zeoclang

Weaksauce
Joined
Jul 11, 2004
Messages
107
I use it only for earning interest but they also do offer loans. US users are restricted to lower rates due to not being able to easily obtain the NEXO token. To get the max rate you would need to have the interest paid in NEXO and have your portfolio composed of 10% NEXO. That means you would likely only earn 8% on USD Coin. The biggest disappointment I have had was that they reduced the interest earn percentage unexpectedly a few weeks ago. If you still feel uneasy about it you could always deposit a low cost low fee coin like XLM to see how it all works.
 
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