What happens during staking and how safe it is?

This page summarizes the projects mentioned and recommended in the original post on /r/ethereum

Our great sponsors
  • SurveyJS - Open-Source JSON Form Builder to Create Dynamic Forms Right in Your App
  • WorkOS - The modern identity platform for B2B SaaS
  • InfluxDB - Power Real-Time Data Analytics at Scale
  • ethereum-burn-stats

    Website that showcases EIP-1559 Burn

  • Glad I can help out! Worthwhile? Part 1 It really depends how much ETH you have. The only problem that I didn't mention with transfering to rETH is you do have to pay the transaction fee for that swap. That means you will start at a loss. So if you have 0.1ETH, I really don't think it is worth it. As an example, when gas is at 100gwei, it is going to cost about 0.049ETH or $225 to perform the transaction. That means if you stake 1ETH, it will take about a year at current rates to recoup the cost. Does Staking increase my rETH Now when you hold rETH, the amount of rETH you control won't increase overtime, but its evaluation against Ether will. Meaning that the longer you hold it the more you'll be able to transfer back to ETH if you decide to do so. How likely will it be that there is a buyer? I took a look at uniswap on Layer1 and it is possible to transfer 50rETH for 50.3439ETH. Simple example but it shows there is already a market for it even though it was very recently released. How easy is it to stake at RocketPool? In regards to the ease of staking, it depends what you want to do. If you have 16ETh and some RPL, you can create a minipool which is extremely similar to running your own node. Definitely not for the non-technical, but the rewards are higher due to the commission of the RocketPool stakers and the return you get for the RPL collateral. If you have less than 16ETH and want to stake with RocketPool, you simply make a token swap and you are done. It really couldn't be much easier. You can go to https://stake.rocketpool.net/ and follow the simple instructions. Ultimately what this is doing is transfering your ETH to rETH. But! Lets say you already have money on Layer2 like Arbitrum. Well, then why not use uniswap to buy some rETH? Again I took a very quick look but it looks like you can transfer 5ETH for 4.92726rETH and that fee would be drastically less. Worthwhile? Part 2 The reduction in the APR since genesis has been expected as it is defined to reduce as more validators come in. So if it keeps reducing, why bother? The merge is coming and what many people are failing to realize is validators APR is going to increase quite a bit. When you make a transaction in ETH post EIP-1559, there is a miner tip that goes to the miner. If you look at https://watchtheburn.com/ you can see for the last month, 48600ETH has been given to miners as tips. Well after the Merge is released, miners are done and gone, so where do those tips go? The validators. Personally I expect the APR for staking to double to around 10% when this happens but it will be highly dependent on volume and when it is really released. It's going to be very, very exciting. As you've seen, I tend to go a bit overboard and may over explain a bit but I hope you find my answers valuable.

  • SurveyJS

    Open-Source JSON Form Builder to Create Dynamic Forms Right in Your App. With SurveyJS form UI libraries, you can build and style forms in a fully-integrated drag & drop form builder, render them in your JS app, and store form submission data in any backend, inc. PHP, ASP.NET Core, and Node.js.

    SurveyJS logo
NOTE: The number of mentions on this list indicates mentions on common posts plus user suggested alternatives. Hence, a higher number means a more popular project.

Suggest a related project

Related posts