Last updated
Last updated
Stader's staking solution on Ethereum, ETHx, is a liquid staking solution for ETH. With ETHx, Stader enables users to participate in other DeFi protocols and earn additional rewards while continuing to accumulate staking rewards on their staked ETH.
1. Deposit and Token Issuance When a user deposits Ethereum into the ETHx staking contracts, the protocol issues ETHx tokens back to the user based on the current Exchange Rate. These tokens act as a liquid representation of the user's staked Ethereum, allowing them to maintain control over their assets without sacrificing potential staking rewards.
2. Multi-Pool Architecture Once deposited, the user's Ethereum is managed by the Stader staking manager, which leverages a multi-pool architecture. The staked Ethereum is split between Permissionless and Permissioned node operator pools. This setup not only ensures scalability and decentralization but also optimizes the return potential for the staked assets.
3. Node Network and Reward Generation The Ethereum from the pools is then allocated to the ETHx Node Network, a decentralized group of Ethereum nodes that interact with the protocol's staking contracts. These nodes perform critical validation tasks for the Ethereum Beacon Chain. The tasks performed by these nodes generates staking rewards.
4. Accrued Rewards and Value Growth As the nodes generate rewards, these are accumulated and lead to an increase in the exchange rate of ETHx relative to Ethereum. This growth mechanism ensures that ETHx tokens increase in value over time, reflecting the staking rewards earned from the Ethereum staked.
So, in essence, ETHx provides a flexible, scalable, and profitable solution for Ethereum staking, allowing users to earn rewards and participate in the DeFi ecosystem without locking up their assets.
Stader is an excellent choice for users looking to leverage decentralized finance (DeFi) opportunities, thanks to its unique features and proven reliability. Here's why you should consider Stader:
Expertise Across Multiple Chains: Stader has demonstrated proficiency in deploying liquid staking solutions across a wide range of blockchains, including Ethereum Virtual Machine (EVM) and non-EVM chains. This extensive expertise allows us to deliver dependable and efficient services regardless of your chosen blockchain platform.
Prioritizing User Safety: At Stader, user safety is our top priority. We conduct comprehensive audits of our smart contracts to ensure their robustness and security, safeguarding against potential risks and vulnerabilities.
Access to the Best DeFi Opportunities: With Stader, users can explore top-tier opportunities in the DeFi landscape. Our liquid tokens consistently offer attractive returns, making Stader an ideal platform for users seeking to maximize their returns in DeFi.