ZoneBitcoin EditorialAs you may know and have been waiting for quite a while, the Ethereum 2.0 upgrade is not going to be long. Everyone is looking forward to this especially since DeFi has never been more exciting. And all new projects often have as a major obstacle the exorbitant gas costs on Ethereum...
However, new projects appear almost every day and the enthusiasm has never been so strong; This is felt in green markets for altcoins with regular ATHs for bitcoin and other cryptos.
In short, Ethereum staking is therefore always more sought after. We are impatiently awaiting the new version to address the current flaws. Here we present to you a very interesting and very practical platform for staking Ether: StakeWise.
In fact, StakeWise wants to make Ethereum staking very simple and secure. We tried it and we were won over.
It's a great platform for staking and let's see in this article how you can participate too.
StakeWise Overview
It is a platform that provides staking services for Ethereum. Everyone who stakes earns tokens based on the amount they deposit.
The company was created in 2020 and is based in Estonia. The two co-founders are Dmitri Tsumal et Kirill Kutakov. The founders raised $2 million in funding, which was helpful in developing a stable and secure platform.
The StakeWise organization is also managed as a DAO (Decentralized Autonomous Organization) which has its own governance token: WISE. This therefore allows holders to also participate in project decisions.
With the SWISE token, people who use StakeWisers will be able to vote on commission rates, how operators operate, etc.
Let us add that the token also serves as currency and is also paid as rewards to people who stake.
The platform was designed to allow all ETH holders to be able to stake their Ethereum with peace of mind and generate interest on it.
In his public statements, StakeWise has clearly addressed its services, including a custodial staking pool as well as non-custodial solo staking.
There are three main services that can be done on StakeWise:
- Solo staking where the holder carries out his staking alone. To do this, you must have the required 32 ETH.
- Staking via a staking pool where holders pool together to generate interest.
Earn rewards by staking Ether
What you need to know is that most platforms that allow ETH staking are blocked until the deployment of Ethereum 2.0 is effective. Even if Ethereum 2.0 will be effective very soon (can we really give a fixed date?), it can be penalizing not to be able to take advantage of its rewards.
This is where StakeWise stands out. It is one of the first to provide a solution through which staking people can enjoy their rewards.
How is this possible?
Well, when you stake on the platform, you get a reward token called rETH2. They are based on a 1:1 ratio to Ether. This means that 1rETH2 is equal to 1 ETH.
It's extremely practical, as you might expect.
Ethereum solo staking on StakeWise
To do solo Ethereum staking, you will need the famous 32 ETH. Then, know that you will be able to remove them from the platform when Ethereum 2.0 is actually deployed.
Please note that solo staking, the service costs 10 DAI per month (the equivalent of 10 dollars per month). There are no other fees, however. This is how the person staking can become a validator on StakeWise. Moreover, the private keys will be stored in the cloud. Holders can therefore log in at any time and withdraw their winnings.
However, we know that having 32 ETH is not within the reach of all budgets. This is why StakeWise is thinking about creating staking pools.
This allows everyone to be able to stake Ethereum 2.0 and deposit the amount of their choice into the pool. So, even if you don't have 1 whole ETH, you can still participate in staking! Not bad, is it?
Ethereum staking in pools
This is perhaps where it gets even more interesting. The StakeWise pool platform is completely free for users.
Moreover, there is no minimum limit of ETH to deposit. Anyone can deposit the ETH they have for free.
For example, as you see in this screenshot, there are over 17,000 ETH in the pool and you need to reach 25,000 ETH to reach the 3rd tier. We see that the platform has successfully completed its other two levels very quickly because the total amount is clearly significant.
The platform offers 600 SWISE tokens for each ETH deposited into the pool.
Also, people who own SWISE tokens will obtain rewards which will be proportional to the amount of their ETH deposit.
How are the rewards paid out?
Every 24 hours, reward tokens will be distributed to all pool members. The tokens are distributed according to the deposits that each person makes.
On StakeWise, the smart contract will convert ETH deposits into sETH2 tokens. Then, an equal amount of token rewards, rETH2 for each ETH that is earned by the pool.
Then, the sETH or rETH can burn to be able to recover the ETH. Each sETH or rETH is equivalent to 1 ETH.
Final Word on StakingWise
There are certainly many platforms for staking ETH, but having tried this platform, we must recognize that it remains very pleasant and intuitive to use.
We have tracking and a transparent view of our deposit and what we earn. This is also certainly due to the fact that the platform is intended to be simple. There are not many features which allows us to go to the essentials and only see what interests us.
This allows us to stake ETH easily and while waiting for the deployment of Ethereum 2.0, we can't wait! It's still better than letting them "sleep" without making them work, right?
