Ethereum 2 Staking — all the details about our new service offering
The Ethereum Foundation has announced the launch of the Ethereum 2 blockchain. This will be a new blockchain based on a Proof-of-Stake (PoS) consensus protocol that allows holders to stake Ether tokens (ETH) — something the market has been awaiting for years.
Staking — what is it?
The Ethereum 2 blockchain will be based on a Proof-of-Stake consensus protocol. This gives the holder of ETH2 the opportunity to put them “at stake” in a validator node which then proposes and attests to blocks. By performing this task, the blockchain grants the holder rewards.
To understand more about how the new Ethereum 2 blockchain works, our Research Department has published a series of in-depth articles, co-authored by Product Owner Mikael Bondum and Research Analyst Dr. Raffael Huber.
Read more here about the phases of the Ethereum 2 development.
What’s in it for me?
By staking on Ethereum 2, you will be granted rewards. Bitcoin Suisse will build an infrastructure which will allow clients to participate with any amount of ETH and without worrying about running validators or buying hardware. Please note, the staking service includes a one-way migration from ETH to ETH2 and the rewards to be earned will only be transferable depending on the development of the Ethereum 2 blockchain.
Why be one of the first with Bitcoin Suisse?
The Bitcoin Suisse staking service will be ready with the necessary infrastructure and technical expertise to give early adopters the best possible conditions from the beginning. The lower the number of validators is, the higher are the rewards — so you want to be one of the first.
Read more about the rewards and penalties involved in Ethereum 2 staking in our article ETH2 Matters — Validator Economics.
Here is what we will offer you with our Ethereum 2 staking service:
Stake any amount you wish
If you stake with Bitcoin Suisse, you can participate with any amount you wish. Ethereum 2 only supports stakes with exactly 32 ETH2, but with us there is no minimum requirement for you. We handle the technical operations, maintaining the highest possible security standards.
Conversion and calculation of indicative predicted rewards
You will be able to deposit the amount of ETH you would like to stake in your Bitcoin Suisse staking account. We will subsequently perform the technical placement of your ETH in the deposit smart contract, thus converting your ETH to ETH2. The conversion will be done without us charging you any fee.
Technical setup and maintenance
During the early development of Ethereum 2, it is assumed that Ethereum will do several changes in the protocol, so-called hard forks. To ensure the highest uptime, we will secure and monitor the deposited stakes, and regularly perform necessary updates to the staking software. Each server will contain automatic monitoring functions to trigger alerts to our operational staff. These functions will seek to prevent wrongful staking operations, which could cause penalties and slashing.
Read more about penalties and slashing in ETH2 Matters — Validator Economics.
Re-staking of funds
When ETH2 become transferable on Ethereum 2, you will be able to reinvest your staking rewards at Bitcoin Suisse. Since a new validator requires exactly 32 ETH2, you would need to have a reward of at least this worth to be able to reinvest (“re-stake”) — hard to reach when you’re not a billionaire!
Nevertheless, our optimization of staking allocations enables this type of reinvesting, meaning that the sum of the rewards resulting from your stake plus your original staking amount will be re-staked on a frequent basis. Over time this will earn you more ETH2 than if you did not do re-staking.
You will retain 85% of the earnings from the incoming rewards. Bitcoin Suisse will use the remaining part to cover costs associated with the infrastructure setup, protocol upgrades, maintenance, and servers.
When we see the new market for ETH2 reaching sufficient maturity, we plan to offer the possibility to pledge your ETH2-stake as collateral for a loan, thus offering you the opportunity to earn rewards from staking while at the same time providing you with fiat liquidity.
However, you can already now take collateralized loans in other, major crypto assets with Bitcoin Suisse. The crypto assets pledged as collateral are stored in the hyper-secure Bitcoin Suisse Vault.
Find more information on our collateralized lending offer here.
Trading the rewards
Once transfers of ETH2 are enabled, Bitcoin Suisse offers you to trade your earned staking rewards into another crypto or fiat currency. You will be able to trade on an ongoing basis as well, our Trade Desk will be notified and will perform the trades tailored to your preferences. The resulting amount will promptly become visible on your Bitcoin Suisse online account, listed under the respective currency.
Get started easily
Our Relationship Managers will gladly guide you through the onboarding process today, so you can be one of the first to stake ETH2 as soon as the new Ethereum 2 blockchain is ready.
Discover how you can start using our Staking solution: