Hodling Ethereum? Here’s how and where to bet your ETH

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General sentiment in the cryptocurrency landscape over the past week has been one of bubbling anticipation, with the Ethereum network finally undergoing its hard fork in London, which includes reforms to the transaction fee market, thanks to EIP-1559.

London is the latest in a series of upgrades that are part of Ethereum’s measured transition from its original proof-of-work consensus model to a proof-of-stake model dubbed Ethereum 2.0.

On Eth2, token holders who hold at least 32 Ether (ETH) can operate a validator node and verify transactions on the network. With the current price of Ether trading near $ 2,700, this puts the entry cost of running an Eth2 validator node at $ 86,400 – too high a price for most participants in the Marlet.

To help combat this problem, several options – including staking pools and centralized exchange staking – have emerged to offer all Ether token holders the opportunity to earn a return on their tokens.

Here’s a look at some of the best options currently available for Ether holders.

Pool

Another option available for Ether holders who want to stake their tokens while still being able to access their equity is Lido, a liquid staking solution for Ethereum.

Liquid staking protocols allow users to earn staking rewards without locking out assets or maintaining staking infrastructure.

Through the Lido platform, users can wager their Ether with no minimum deposit required, with a current APR of 5.4% after deducting wagering reward fees. In exchange for the Staked Ether, users are given stETH, which can be freely moved and traded at will.

Total value locked to Lido protocol. Source: DeFi Lama

According to data from DeFi Llama, Lido is currently the highest ranked Ethereum staking pool and the eleventh largest Decentralized Funding Protocol (DeFi) in total value locked, with a value of $ 3.26 billion currently locked in the protocol. Lido.

Lido’s liquid staking capabilities are currently developing, thanks to an initiative by the Anchor Protocol community to list bETH – a shrouded form of stETH on the Terra blockchain – as a form of collateral on the platform. Anchor, which will allow Anchor users to borrow TerraUSD (UST) against their staked Ether collateral as well as to earn cash mining rewards.

StakeWise

StakeWise is an Eth2 staking service whose goal is to help users achieve the highest possible return on their farms through the combination of staking, yield farming, low fees and a structure Unique tokenomic that allows compound staking.

Interested parties can deposit Ether into the StakeWise smart contract and, in return, receive sETH2, which is an “ETH Staking”. The rewards for the assets involved are paid in rETH2, which is “ETH reward,” and sETH2 and rETH2 can be traded at a one-to-one ratio for Ether.

These assets can also be transferred to any Ethereum wallet or exchanged for other tokens, allowing token holders to access the equity held in their Staked Ether while also being able to earn staking rewards.

The StakeWise protocol allows anyone with 0.001 ETH or more to participate in staking through StakeWise Pool, while larger token holders with at least 32 ETH can use StakeWise Solo, a non-custodial staking service where users provide the game. public of their withdrawal key and 32 ETH blocks for StakeWise to create and manage validators on their behalf.

The current APR offered for staking on the StakeWise protocol is 5.64%. There is a 10% commission for rewards generated through StakeWise Pool, while StakeWise Solo users are charged a fee of 10 Dai per validator per month.

Related: Boomer brand changes NYSE ticker to “ETH”, acknowledging crypto ascendancy

Centralized exchanges

For users who aren’t quite up to date with the ins and outs of decentralized finance – or just prefer the more traditional conservation route – some of the ecosystem’s top centralized exchanges have started offering Eth2 staking services. to traders on their platforms.

The main options currently available to users in the United States are Coinbase and Kraken, respectively the second and fourth ranked cryptocurrency exchanges globally, based on 24-hour trading volume.

The main disadvantage for users who wish to bet their Ether using one of these options is that their bets will be illiquid, meaning they will not be able to trade their chips or access the value they contain until that the Eth2 network is fully launched.

Kraken currently offers an annual stake reward of 5% to 7%, according to the rules of the Ethereum protocol, and charges a 15% administration fee on all rewards received.

The current APR offered by Coinbase is 5%, after deducting a 25% commission. While neither Kraken nor Coinbase offer any type of insurance on Staked Ether, Coinbase has promised to cover any loss that would occur if its responsibilities as a validator are not fulfilled.

Overall, the best staking options available to Ether holders offer an APR range of 5% to 7% and charge a minimum commission fee of 10% to 25%. Compared to the less than 1% savings rate offered by most banks on a rapidly inflating dollar supply that is losing more and more value day by day, Ether staking may soon become the savings account. preferred and a source of passive income for cryptocurrency supporters.

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The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move comes with risk, you should do your own research before making a decision.