Ethereum Staking with Archax: Earn Rewards for Network Contribution
Ethereum Staking: A Greener Network via Proof-of-Stake
Please note that the minimum allocation is 32 ETH.
Staking Ethereum offers investors the ability to earn rewards with their ETH whilst also contributing to the strength of the network, the second largest blockchain network only behind Bitcoin.
Those who decide to stake are agreeing to lock up their Ethereum as collateral for Archax’s validators to use. Whilst the collateral needs to be “locked up”, it does not leave the control of Archax’s institutional custodian. This enables Archax to ensure complete oversight of that ETH and the reward it is earning, as well as the ability to unstake it whenever the investor pleases.
Staking with Ethereum
Ethereum’s transition from Proof of Work (“PoW”) to Proof of Stake (“PoS”) not only makes the network 99.5% more environmentally friendly, but ETH investors can now earn yield on their ETH holdings.
Investors who decide to either put idle ETH to use, or purchase ETH via Archax’s exchange or OTC desk to pursue the same staking activities, will earn incremental amounts of ETH every day. This yield will be paid out directly to the investor’s wallet, safeguarded via Archax’s institutional custodian. Archax performs daily reconciliations on all its Ethereum validators and the ETH they earn and provides clear reporting for investors.
No technical expertise is needed for this, nor is there any need for the investor to engage with any of the validation services.
Staking requires your Ethereum to be locked on the protocol in order to earn rewards. During this time you won't be able to trade or transfer your Ethereum. If you choose to unstake your ETH, it will remain locked for a 'cooldown period' that can last from a day to several weeks, depending on prevailing network traffic.
Example
1,056 (ETH)
Your Holdings
5.50%
ROI
0.16(ETH)
Daily Yield
4.84 (ETH)
Monthly Yield
58.08 (ETH)
Yearly Yield
Fees
Archax charges 10% of the yield for its services, leaving investors with the remaining 90%.
Staking risks
Please note the advertised Rate of Return (5.50%) may not be achieved. The following points highlight circumstances in which this may be the case in addition to explaining further risks associated with staking:
- Technical issues - Bugs, failures, or network disruptions could cause loss of access to staked ETH or slashing of funds.
- Locked funds - Staked ETH will be locked up for days or months, depending on network congestion.
- Penalties - Violations of protocol can result in slashing of staked ETH as penalties.
- Changes to protocol - Ethereum improvement proposals may alter staking yields, minimums, or duration of lock ups.
- Opportunity cost - ETH staked may underperform other investments during lock up period.
- Stake dilution - Issuance of more ETH could dilute staking yields over time.