Guide to Eth2 Staking with StakeWise
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With Ethereum 2.0’s launch — a set of interconnected upgrades that will make Ethereum more scalable, more secure, and more sustainable — Ethereum will move transition from a Proof-of-Work model to a Proof-of-Stake consensus model.
Validators who are securing the Ethereum network must stake a minimum of 32 ETH to participate the consensus mechanism of Ethereum 2.0.
StakeWise gives users a way to stake just a minimum of 0.001 ETH on the Ethereum 2.0 beacon chain and earn ETH rewards while doing so.
It also claims to offer one of the highest ETH staking yields through a variety of strategies such as yield farming and compound staking.
StakeWise has two main products:
- StakeWise Pool: Your ETH stake is pooled with other participants and you will receive a tokenised representation of your stake
- StakeWise Solo: You own the withdrawal key of your 32 ETH stake, but you can leverage StakeWise’s security practices and infrastructure for staking
StakeWise Pool
The StakeWise Pool is a network of validators created and operated by StakeWise on behalf of stakers using ETH deposited into the Pool.
Once 32 ETH of deposits have been accumulated from depositors, a new validator is created and added to the StakeWise Pool to earn rewards.
By staking in the StakeWise Pool, you will be able to participate in the ETH 2.0 consensus mechanism and earn ETH rewards while doing so.
The earned ETH rewards from the pool is then distributed pro-rata based on the share of the pool to depositors.
In addition to the above, you will receive liquid StakeWise tokens representing your stake which can be used in DeFi protocols.
For providing this service, StakeWise takes a 10% commission on rewards that the Pool generates to compensate for the costs of…
