Liquid Staked ETH: Maximize Yield on ETH2.0

With the surge in DeFi and the outrageous yields that come with it, the interest in ETH2.0 and staking rewards have only been growing. However, to benefit from this, there are also concerns of high gas fees, illiquidity, good technical knowledge, and hardware requirements. This is how StakeHound’s Liquid Staked ETH (stETH) comes into play.

Earn Rewards For Staking ETH But Risk Liquidity 

Did you know you can actually earn rewards like annual yields of about 7-8% on your Ether (ETH) while staking with ETH 2.0? This makes staking ETH a great way to utilize dormant assets.

However, to enjoy such a high percentage of staking rewards, potential stakers are required to lock up a minimum amount of 32 ETH (currently valued at around US$67,040) for a period upwards of 2 years while setting up and maintaining a validator node. In other words, not only do you have to fulfill a minimum stake of ETH that is locked up and hence illiquid, but you will also need to perform the duties as an Ethereum validator or risk their rewards. 

Liquid Staking ETH 

To simplify staking with ETH 2.0 and address the issue of illiquidity, an alternative staking platform like StakeHound enables liquid staking for ETH stakers, giving you the benefits of both staking and DeFi. 

This is achieved via liquid staked tokens that allow users to receive staking rewards while benefiting elsewhere from the liquid assets such as in DeFi. 

stETH — StakeHound’s Liquid Staked ETH Token 

StakeHound allows for liquid staking of ETH by issuing stETH, an ERC-20 token which is a representation of the service of staking 1 ETH.

You can be assured to know that StakeHound is a Swiss company that adheres to the robust Swiss legal framework for digital assets and follows strict compliance procedures. Our platform has partnered with top military-grade security custody solutions such as Fireblocks and Copper to secure deposited assets and our smart contract has also been audited by Quantstamp.

When you send ETH to us, you will receive stETH in return. Staking rewards will also be accumulated directly in the stETH holders’ wallets in stETH. This is done through the mechanism of rebasing, which automatically increases the balances of stETH holders, whether the tokens are sitting in their MetaMask wallets or in liquidity pools. 

You can also buy stETH on the secondary market via a supported decentralized exchange (DEX) like SushiSwap to enjoy stETH staking rewards

Through stETH, you can now freely use your staked tokens to participate in DeFi, collateralize your assets, or trade them for other tokens. Our users have full control over their stETH, and do not have to worry about fulfilling a minimum staking amount, running a node, or any lock-up period as stETH can be sold at any time on supported exchanges. 

Liquid staking with StakeHound’s stETH makes it significantly more accessible and easier for anyone to reap the rewards of staking as an Ethereum validator with little capital and technical knowledge of staking with ETH 2.0. 

This essentially frees you from the ETH 2.0 dilemma ‘to stake or not to stake’ because you get all the benefits instead with less hassle involved. Another issue in DeFi right now is the high ETH gas fees incurred which we addressed in a video on how you could potentially save on ETH gas fees.

EXTRA Rewards For Staking With StakeHound

In addition to earning staking rewards via liquid staking with us, you can also benefit from your staked tokens through liquidity mining, otherwise known as yield farming. 

In liquidity mining, staked tokens are provided as liquidity to DEXs, who reward liquidity providers (LPs) for contributing capital to their platforms’ token swap liquidity pools. Whenever a trade occurs on the DEX, a trading fee is distributed proportionally to all LPs in the pool at the moment of the trade. 

DEXs also often offer additional rewards to further incentivize their communities for participating in their platform operations or governance. 

By holding onto stETH, users are given additional rewards as liquidity providers on top of your staking rewards. For example, for a ETH-stETH pair, you earn: 

  • stETH staking rewards at 7.7% APR 
  • Trading fees of pool share at 0.25% per trade (for liquidity providers on SushiSwap)
  • Additional governance token rewards at 34.58% (1y) (from SushiSwap’s liquidity mining incentivization program, Onsen) 

StakeHound also works with other staked tokens to form multi-staked token pools that bring double the staking rewards for our users. 

For example, in a stETH-stFIRO pair, you will earn: 

  • stETH staking rewards at 7.7% APR 
  • stFIRO staking rewards at 10.87% APR
  • Trading fees of pool share at 0.25% per trade (for liquidity providers on SushiSwap)
  • Additional governance token rewards at 13.75% (1y) (from SushiSwap’s liquidity mining incentivization program, Onsen) 

Note that staking rewards may vary, and the numbers illustrated above are based on rates at point of writing.


Bonus: $6,000 GIVEAWAY

We just launched a $6,000 giveaway in stETH and DIVI for people who would like to explore using stDIVI on testnet. All you have to do is to follow the steps to get stETH, stDIVI, provide liquidity, and follow the remaining steps to post on Twitter. 10 lucky winners will be chosen at random to receive stETH and DIVI on the mainnet.

While no actual funds are required in order to participate in this contest, actual stETH and DIVI will be given out as prizes. This means you get to earn stETH without going through the process of acquiring it on the mainnet.

All in all, liquid staking with StakeHound via stETH is a very useful way to enjoy the high staking reward yields without the limitations of staking on ETH 2.0. What also sets StakeHound apart from other alternative staking platforms is that users can easily enjoy the additional rewards of liquidity mining as well as from multi-staked token pools, giving users even more value out of holding their existing cryptocurrency assets.

Have some questions? Join the stETH Discord Community or buy stETH on Sushi now!