Introduction to ETHx
Liquid Staking Tokens (LST) are said to be the driving forces for Ethereum decentralization.
Yet, paradoxically, it can appear to be quite centralized. Here’s why that can be a cause of concerns. Two of the most preferred ways of staking $ETH are—
▻ Liquid staking (36.4%)
▻ Centralized exchanges (24.5%)
Even though Liquid Staking being the most preferred way to stake, there is still a large portion that is staked via Centralized Exchanges (CEXs). Now the problem with staking $ETH using CEXs is that it can be the cause of Centralization in the network.
That's where liquid staking comes in, with Liquid Staking Tokens we can combat this and be the driving force for a more decentralized and capital-efficient network.
Also Read: What is Ethereum Merge
However, another thing to be noted is that the current LST market is heavily centralized too. With just one Liquid Staking player holding over 74% of all liquid staked assets on Ethereum. Also the top 3 largest Liquid Staking protocols have control to the 94.5% of all LST on Ethereum.
With this kind of centralization, the network can be at multiple risks such as:
▻ Massive slashing events
▻ Censorship of transactions
Stader’s intent with its liquid staking token, ETHx, is to create an LST with a unique value proposition to users and node operators while also adding to the diversity of LSTs on ETH.
Some of the key features of ETHx are as follow:
Also Read: Ethereum Staking Rewards
We, at Stader, want $ETH to thrive. We’ve taken a few steps to make the Ethereum network get more decentralized while satisfying the user’s demand.
That’s why we:
▻ Support stakers of all shapes & sizes
▻ Encourage permissionless node operations
▻ Fight for a decentralized staking ecosystem
ETHx multi-pool architecture is for all kinds of NOs including:
Also Read: Smart Contracts
Why Stader’s $ETHx ?
Now to sum up on how Stader’s, $ETHx will help Ethereum and the users the following way :
And in this way, we at Stader will help $ETH get more decentralized while satisfying the user’s demand. We are soon going to live on our platform. Keep an eye out for all ETHx related updates on Stader.
Also Read: What is Decentralisation in ETHx
Q) What are the benefits of liquid staking Ethereum?
Ans) There are a number of benefits of liquid staking Ethereum, including:
Q) What are the benefits of Liquid Staking ETH?
Ans) Some of the most lucrative benefits of liquid staking your ETH are:
Q) Can I unstake my ETH before the end of the staking period?
Ans) In most cases, you can unstake your ETH before the end of the staking period. However, you may be penalized for doing so. It's important to check the terms and conditions of your staking service to understand the penalties for early unstaking. This is crucial information before proceeding to know how to stake ETH.
Join Stader’s newsletter
Get the latest updates, new DeFi strategies and exclusive offers right in your email box