ETH Staking Rates
|Rocket Pool||N/A||16 ETH||Non-Custodial|
|Blox Staking||$7-15 per month||32 ETH||Non-Custodial|
|All Nodes||$5 per month||32 ETH||Non-Custodial|
ETH 2.0 Staking Recommendations: DeFiRate knows there are many options when deciding how to stake your Ethereum and our goal is to simplify it.
Ethereum 2.0 Staking services allow users to contribute to the Ethereum 2.0 network and earn a return, without all of the usual requirements of running a validator node. They minimize balance, technical expertise and hardware requirements so that anyone can participate in the future of the network.
Welcome to the DeFi Rate ETH 2.0 staking page – your guide to staking ETH and contributing to Ethereum 2.0.
Latest ETH Staking News 2021
Ethereum 2.0 itself has recently attracted plenty of mainstream attention, gaining popularity thanks to its energy-efficient Proof-of-Stake consensus algorithm. This has even gone as far as large players such as Goldman Sachs claiming that Ethereum has a high chance of surpassing Bitcoin as a store of value.
An Overview of ETH Staking
Ethereum 2.0 is a proof-of-stake (PoS) network, which makes use of staking instead of mining to validate transactions. With this network upgrade just around the corner, it is set to be the single largest implementation of staking in cryptocurrency to date.
As you’ll likely know, stakers must hold a certain minimum required balance of 32 Ether (ETH) in order to validate transactions on the network and earn a return for doing so. This staking also requires plenty of technical knowledge and expensive infrastructure. If done poorly, slashing and offline penalties can become quite costly for inexperienced stakers. To add to these difficulties, staked ETH cannot be redeemed until Ethereum 2.0 is completely up and running, while smaller ETH holders (with less than 32 ETH) are excluded altogether.
To combat these issues, many exchanges and platforms have set up infrastructure to make it easier and safer for anyone to stake their Ether (ETH) and earn a return – no matter their technical background or ETH holdings.
Top ETH Staking Picks
With competition for ETH staking services heating up, we’re keeping our finger on the pulse for which platforms are the best for ease of use, safety and expected returns.
In this section, we’ll provide a brief overview of each of our suggested ETH staking platforms, as well as some of their pros and cons.
Coinbase is a US-based cryptocurrency exchange which is known for being compliant with regulations and institution-friendly. The exchange went public in April 2021, with its shares trading on Nasdaq.
Staking ETH on Coinbase is easy, however they do have some strict requirements before you can get started. This includes living in an eligible country, as well as completing ID document verification. Only individual accounts are permitted to stake (no business accounts).
There is no minimum limit on how much ETH a user needs to stake, however there is a variable maximum limit for Coinbase to “manage network limits”. Staking rewards are paid daily and can be tracked in a user’s “lifetime rewards” balance, however these cannot be accessed until Ethereum 2.0 is up and running.
Coinbase staking fees are some of the highest in the industry, taking a significant 25% commission out of all staking rewards.
Staking limits: No minimum, variable maximum to manage network limits.
Reward payments: Paid daily into “lifetime rewards” balance and cannot be accessed. These are not added to staking balance.
Interest Rates: Floating, “up to 6%”
Users simply go to their asset page and follow the prompts. Can also be done on mobile.
Fees for staking on Coinbase are huge, taking a significant 25% commission on all rewards earned. https://help.coinbase.com/en/coinbase/trading-and-funding/pricing-and-fees/fees
- Highly trusted platform
- Institutional grade
- No minimum ETH requirement.
- Staked ETH and rewards completely unusable until Ethereum 2.0 launches
- 25% fees are considerably high.
Kraken is another well-established American crypto exchange, which has been around since 2013. The exchange offers ETH staking of any amount with a simple user interface, which includes extra buttons for a quick selection of 25%, 50%, 75% or 100% of a user’s ETH balance.
Although ETH cannot be unstaked, Kraken offers some flexibility for stakers, providing them with “ETH2.S” tokens representing their staked coins. These will be tradable in an ETH-ETH2.S market, available for all countries excluding the US and Canada.
Staking rewards will be paid in ETH2 (different from ETH2.S), which cannot be deposited, withdrawn or traded.
Kraken charges fees of 15% on all rewards earned by stakers, with their displayed RPY rate reflecting the fee.
- Well-established exchange
- Simple and easy staking interface
- Provides tradable ETH2.S tokens representing stake
- Large commission fees (15%)
- ETH2.S markets not available to US & Canada
Binance (Non US)
Binance is the largest cryptocurrency exchange in the world, boasting massive daily trading volumes and an extensive suite of crypto-related services.
ETH staking on Binance only takes one click and provides the user with an equivalent amount of BETH tokens. These tokens represent their stake in the pool, with on-chain rewards being distributed as BETH directly into a user’s spot account.
BETH tokens can be used for other functions within the Binance platform, however it will only earn staking interest while it is sitting in your spot wallet. Although staked ETH cannot be withdrawn, BETH can be easily swapped for ETH on a 1-to-1 basis.
Binance has vowed to distribute 100% of all on-chain rewards to users, which means that they are taking no commission. There are virtually no minimum or maximum limits on how much ETH can be staked.
- One-click staking
- Provides stakers with BETH, which can be utilized while the staked ETH is inaccessible
- No minimum or maximum limits
- No commissions – users receive 100% of the rewards.
- Users will not earn interest if their BETH is moved out of their spot wallet
- Binance doesn’t support fiat currency trading, which may inconvenience some users.
StakeWise is an ETH 2.0 staking platform which offers both custodial and non-custodial staking options. A beta version of the platform has been running since May 2020, which has actively tested its performance.
StakeWise pool is the platform’s main service, which is custodial and caters to small stakers. This allows users to pool as little as 1 wei through a very user-friendly dashboard, which allows earnings to be tracked in real-time.
Stakers will receive a corresponding amount of sETH2 tokens representing their stake in the pool, as well as rewards in the form of rETH2 tokens. sETH2 tokens must be held to accumulate staking rewards (in rETH2).
A flat commission fee of 10% applies to all rewards earned by stakers via this option.
Additionally, StakeWise offers a “StakeWise Solo” option, which enables users to stake their own node if they have the required 32 ETH. This is a non-custodial solution which leverages StakeWise’s infrastructure to run the validator, for a monthly fee of 10 DAI.
- No minimum limit
- User-friendly dashboard
- Issues tokens representing stake in pool and rewards
- Competitive 10% fee
- Non-custodial option for solo validators.
- Doesn’t have the same established reputation of other centralized platforms and exchanges.
Non-Custodial ETH Staking Options
Rocket Pool is a decentralized ETH 2.0 staking protocol with backing from well-known blockchain company, ConsenSys and others. The protocol was originally designed in late 2016 using the mauve paper released by Vitalik himself and has been in development since 2017.
The Rocket Pool platform allows anyone with more than 0.01 ETH to participate, providing stakers with representing rETH tokens that can be used in the wider DeFi ecosystem, while their ETH is inaccessible. rETH can be traded back to Rocket Pool for ETH plus rewards at any time, as long as there is liquidity available for the conversion.
Commission fees are variable, based on supply and demand mechanics. It is unclear what range this may involve.
Rocket Pool also enables users to earn a higher return (with no fees) by staking 16 ETH for their own node – just half of the usual node requirement. The other 16 ETH comes from small stakers.
Any losses occurring from bad nodes are socialized across the entire platform, to minimize risks for any single user.
Rocket Pool Pros
- Backed by ConsenSys
- Provides stakers with rETH tokens
- Facilitates early exit via trading rETH for ETH + rewards
- Only requires 16 ETH for a validator node (with no fees!)
- Socialized risk.
Rocket Pool Cons
- Commission fees variable and not explicitly stated
- Gas fees may outweigh benefits for small stakers.
Blox Staking is a decentralized ETH staking platform for independent nodes/validators only, which means stakers will need to own a minimum of 32 ETH to use the platform.
Blox previously received a grant from the Ethereum Foundation to develop Secret Shared Validator (SSV) nodes for Ethereum staking – a secure way to split validator keys between non-trusting operators.
Users can keep complete control over their private keys without having to worry about the maintenance and security of their validator node, all via a desktop app.
Blox Staking is free for early adopters, but users will have to pay for their own cloud account which typically ranges from $7 to $15 per month.
Blox Staking Pros
- Free for early adopters
- Received support from the Ethereum Foundation.
Blox Staking Cons
- Independent validators only (32 ETH minimum)
- Users must pay for their own cloud services.
Allnodes is a non-custodial platform that offers staking for several networks, including Ethereum 2.0. It offers different hosting plans that offer varying uptime reliability and bandwidth.
When it comes to Ethereum 2.0 staking, Allnodes only provides independent validator staking, which requires a minimum amount of 32 ETH. ETH 2.0 staking is priced starting at $5 per month and accepts a wide range of fiat and crypto payment methods.
The platform offers an intuitive user interface, 24/7 customer support and extra perks including bonuses, challenges for rewards, airdrops, competitions, and more.
- Simple UI
- 24/7 customer support
- Extra perks
- No commission.
- Independent validators only (32 ETH minimum)
- Website has minimal company info.
Lido is an open-source, decentralized ETH 2.0 staking platform which allows staking for any amount of ETH. It runs on a DAO-controlled smart contract, with staking providers never having direct access to user funds.
Stakers on Lido receive stETH tokens in a 1:1 ratio to their staked ETH. stETH represents BOTH the staked ETH and rewards, and can be used within the broader DeFi ecosystem. Staking rewards received in stETH in real-time.
Lido charges a 10% commission fee on all staking rewards, with this amount being split between node operators, the Lido DAO and an insurance fund.
- Open-source and decentralized
- Issues stakers with stETH tokens for liquidity
- Rewards paid out in real-time
- Competitive fees (10%)
- Insurance fund.
- Gas fees are prohibitive for small stakers.
Key Points to Consider
With a wide selection of Ethereum 2.0 staking protocols at your fingertips, here are some of the key points you should consider before you get started:
- Lock-up period – ETH staked in Ethereum 2.0 will be locked for an undefined period of time, until the network reaches the next phase of its launch. You need to ensure that you are comfortable not being able to access your ETH and any rewards until then – this could take more than two years.
- Tokenization – Some protocols will provide you with liquidity tokens which represent your staked coins. These can be useful if you find yourself needing indirect access to your funds.
- Audit History – If you’re using a decentralized staking platform, make sure the code has been thoroughly audited and tested.
- Fees – Commissions and fees vary greatly across platforms, depending on a range of factors. ETH 2.0 staking is a long-term commitment – make sure you know what you’re getting yourself into.
- Gas fees – If you’re using a decentralized staking protocol, you need to make sure you account for gas fees. If you are staking a small amount of ETH, these fees could outweigh the returns.
Given the sheer scale of Ethereum and ETH 2.0 staking, we expect many more platforms to integrate various staking opportunities for users to stake their coins.
Here at DeFi Rate, we pride ourselves on staying on top of lending news, rate changes and trends. If you or your project are interested in appearing on our ETH 2.0 staking page, please contact us to set up a discussion with someone on our team.
Different ETH 2.0 staking platforms come with different risks. We believe it’s safe to stake your ETH via all of our top picks, but encourage users not to stake more than they can afford to lose.
While most of the listed platforms have undergone audits and testing, there is always a small chance that funds could be compromised through unforeseen circumstances.
Additional risks include “slashing” and breaches of validator duties, which can result in losses or penalties to staked funds. Most of the listed platforms will cover, mitigate, or socialize any losses, but you’ll want to check this with your chosen staking provider.
Staking rewards for Ethereum 2.0 are determined by the Ethereum network itself. This is programmed to marginally reduce the rewards as more ETH is staked. The minimum reward possible (before any platform fees) is 4.9% APR, once the maximum cap of 10,000,000 ETH is staked.
First and foremost, you will need some Ether (ETH). For most platforms this can be almost any amount, but you’ll want to consider the returns you’ll receive net of any commissions and fees.
For the decentralized platforms, you’ll need your ETH in a web3 wallet such as MetaMask – as well as enough extra ETH to cover transaction fees (“gas”).
On the other hand, to use one of our top picks all you’ll need is an exchange account and some ETH.
You will not be able to unstake or redeem your ETH directly until shard chains are fully implemented on the Ethereum 2.0 network. This could take more than two years to complete, which means you must be prepared to not have access to your ETH and staking rewards until then.
Many platforms are working around this by issuing tokens representing your staked coins – in most cases, these can be exchanged almost as if they were the underlying ETH.
The way you can monitor your returns will vary across all staking platforms, however most will have a dedicated dashboard or wallet balance that can be accessed within their user interface.
Some of these will show earnings in real-time, whereas other update balances periodically (e.g. daily).