Participate on liquid staking and join the stETH Hunt with StakeHound

Kickstarting the brand new liquid staking on StakeHound, we invite you to join The Hunt for extra rewards on the upcoming ETH 2.0 launch. To participate, you simply need to wrap your ETH to stETH. Gain instant liquidity, full-speed access to staking rewards, and bonus HOUND tokens all in one shot! 

As you may know, StakeHound has found a way for everyone to eat their cake and have it too. If you don’t know yet how you can catch up here.

We have managed to get you staking rewards and keep your liquidity intact, so you can participate in those juicy DeFi services that are growing at lightning speed.

Welcome to the world of liquid staking by StakeHound.

But we have more for you!

HOUND Token

This exciting journey couldn’t be possible without the full support of our community. That is why we are creating HOUND, a token for staked Tokens to reward our liquidity providers.

The Hunt is a way of giving back to those who support us via a yield farming program that distributes HOUND tokens to early participants and liquidity providers. More farm yields will happen in the future, and we will keep you up to date with that.

Meanwhile, expect more news as we get closer to HOUND going live in Q1 2021!

The Hunt

The Hunt is a short window of time when you can acquire stETH before they are released to get a higher HOUND token allocation. This is the way StakeHound rewards your commitment.

This is how you can maximize your HOUND rewards:

1. Hound Fan (1 x Bonus)

To become a Hound Fan, you can acquire any stakedToken incl stETH beforeQ1 2021, directly on StakeHound. The rewards will be proportional to the percentage of total stakedTokens purchased. More details of these allocations will be released soon.

2. Hound Master (+0.2 Bonus per Hunt)

Purchase as many stakedTokens as you want during The Hunt to increase your HOUND Token multiplier by 0.2. You can participate in multiple Hunts to increase the multiplier.

3. Hound Hero (+0.5 Bonus)

To increase your multiplier by an extra 0.5x participate in every StakeHound Hunt before the launch of the HOUND token.

Remember, the earlier you join, the more rewards you get.

How to participate?

To start the process, you just have to fill this form, and we will email you the onboarding process. 

To participate, you have to purchase stakedETH on the StakeHound platform. You will receive your stakedETH right after launch. (if you already filled the form once, you don’t need to do it again).

You get qualified Hound from the StakeHound Hunt the moment your onboarding process is complete, and you have sent the funds. 

To be eligible for these rewards, you must not trade back your stakedETH for ETH on the platform before distribution of HOUND.

Conclusion

The launch of  ETH 2.0 in the coming days, ETH switches from PoW to PoS opens the opportunity to get Staking rewards, but it requires locking up your tokens for 2 years, a minimum stake of 32 ETH, and the setup and maintenance of Nodes.

Stakehound’s answer to all downsides is liquid staking. This new concept allows you to get your staking rewards without locking up your liquidity. You can then participate in the exciting DeFi services; you send us your ETH and receive stETH in return on a 1:1 ratio. 

Launching stakedETH will be a huge milestone in our journey. We are super excited to give you access to the DeFi superpowers of the ETH community.

Our goal is to give and share our journey to the HOUND token launch and incentivize you to join the StakeHound Hunt.

 

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Your Guide to Liquid Staking

As the launch of Ethereum 2.0 approaches, most users are faced with a serious question: should I stake or not? While staking has its advantages, including gaining continuous yields, users must be aware of all the risks associated with staking. One major drawback you should be mindful of is the lock-up period of 18 months, which renders your ETH essentially illiquid. This means you won’t be able to use the staked funds for other investments or participate in decentralized finance (DeFi) applications. 

But don’t fret. While it seems like staking has more cons than pros, there is another way for users to participate in Ethereum 2.0 without losing liquidity: Liquid staking. This way allows you to keep full control of your funds. Simply put, liquid staking is a new method where users can stake their tokens, earn passive income while staying liquid. This article will explore everything about this new method and how it can benefit you in Ethereum 2.0 staking. 

The Origin of Mining (Proof-of-Work)

When Bitcoin was first created, Satoshi Nakamoto had to find a way for transactions to be verified without using a third party or intermediary. He achieved this by developing the Proof-of-Work (PoW) system, the original consensus algorithm on the blockchain network. This mechanism is used to confirm transactions and produce new blocks to the chain. 

However, confirming transactions and arranging blocks should be done with care. This responsibility bears on particular nodes called miners, using a process called mining. While PoW is a widely popular concept used by many blockchains, it requires significant amounts of electricity. Only a limited number of transactions can be processed at the same time. This is why a new consensus algorithm was developed.

The Rise of Staking (Proof-of-Stake)

Proof-of-Stake (PoS) was first introduced in 2012 intended to solve Bitcoin’s mining high-energy consumption problem. Its concept states that anyone can mine or validate block transactions depending on how many coins they hold. It also rewards users for collateralizing or pooling native cryptocurrency and locking it to form a weighted consensus on a blockchain. Compared to PoW algorithms, PoS is energy-saving and more rewarding to long term holders. 

PoS also offers a governance structure for users who stake on the network. Token holders can vote in decisions such as network upgrades, emissions adjustments, and other changes that were once restricted only to the closed development team. But users participating in PoS are locked into contracts for a predetermined amount of time. In many schemes, users who withdraw their funds early will receive a penalty, along with a waiting period before assets arrive in their wallets. 

Thankfully, there’s an alternative way for users to participate in PoS algorithms without all the downside that comes with it. 

The Age of Liquid Staking and DeFi (Decentralized Finance)

Staking is a popular option for blockchain users to earn passive income. But this comes with many restrictions, such as having funds locked up for a certain amount of time. This can create opportunity loss as these funds cannot be used for other purposes such as trading or investing in DeFi products and services. This is the same issue users face now when participating in the long-anticipated switch of Ethereum 2.0 from PoW to PoS. 

Here is where Liquid Staking by StakeHound, comes into the picture as an innovative way to participate in the PoS algorithm. So how does liquid staking work, and what are the benefits of liquid staking for the user? 

Instead of locking up your funds to ETH 2.0, you send these tokens to StakeHound. Once StakeHound receives your asset, they create a copy, called stETH, which is simply a wrapped asset representing the original. It has the same underlying value. While StakeHound stakes the original asset via a custody partner in the original Ethereum 2.0 contract, users are freely operating with its wrapped version. Once you receive the wrapped or stETH, you can freely do whatever you want with it while getting the rewards without any lock-up. 

Participate in DeFi, collateralize your asset, or even trade it against other tokens on different exchanges such as Uniswap. And the best of all, earn staking rewards while freely using your token elsewhere. Get the most out of liquid staking, an innovative solution to the current challenges PoS is facing. 

Conclusion

Participation in the PoS algorithm has its advantages, but the downsides such as illiquidity of assets can scare away potential investors. Rising in popularity, liquid staking allows users to get all the staking benefits without any of its restrictions. Through tokenized stake, users can now freely access DeFi and manage their positions in a more flexible and non-custodial manner earning from both staking and DeFi. This opens up opportunities for investments and gives you back the control over your fund as they always remain liquid.

 

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Liquid staking for ETH 2.0 without lockups or rewards slashing

The long-awaited Ethereum 2.0 upgrade is set to launch on December 1st, marking a major step for the Ethereum blockchain, shifting the consensus mechanism from Proof-of-Work (PoW) to Proof-of-Stake (PoS). 

Ethereum 2.0’s beacon chain genesis is set to launch at the earliest possible launch date of December 1st. Everyone can still participate in this “historic moment” in blockchain. It is not too late to stake your ETH, but you have to choose between different options. While staking on Ethereum will lock up your ETH, you can easily stake on StakeHound, not giving up the control over your funds.

Staking with Ethereum 2.0

The Ethereum network is the blockchain’s biggest network to transition to Proof-of-Stake (PoS) from Proof-of-Work (PoW). This was confirmed following the transfer of 524,288 Ether (ETH) from 16,384 validators into the Eth 2.0 deposit contract, which went live on November 4. Transfers to the deposit contract increased rapidly from 23rd to 24th November 2020, with over 200,000 ETH sent in just 24 hours. This long-awaited transition to ETH 2.0 promises upgrades that will improve the security, scalability, and sustainability of the Ethereum blockchain. While its improvements are promising, most users are left to face a pivotal decision of whether they should stake with ETH 2.0 or not. 

ETH staking requirement and reward slashing

Staking with ETH 2.0 promises users steady staking rewards, including high yield savings. But while the staking returns seem generous, the staking requirements might be too high and restricting for many users. To stake with ETH 2.0, users are required to stake a minimum of 32 ETH, which is currently worth about US $16,000+. Apart from the high entry point, users are expected to lock-up their stake for a minimum of 18 months.

Not only are these staked ETH rendered illiquid, but also users must host their own nodes and infrastructure acting as validators, with a risk of reward slashing. Slashing means that a significant part of the validator’s stake can be removed: up to the entire stake of 32 ETH in the worst-case scenario. Slashing can happen if users are unable to perform their duties as validators properly. On top of all of this, users will not receive any compound interest on their staked returns. 

With all of these limitations, potential stakers on ETH 2.0 are faced with serious questions: would it be best to run your own node and complete all the complicated and tedious tasks of a validator, or should you stake your ETH with a third party staking provider platform that can provide you with more freedom with your stake?

Staking with StakeHound

For users interested in staking with ETH 2.0 but are skeptical about its restrictive nature, staking with an alternative staking platform is the best option. StakeHound is a liquid staking platform that allows users to enjoy all the benefits of staking while removing the restrictions that come with it. 

When staking on ETH 2.0, users must maintain a node, bear an 18-month lock-up period, and provide a minimum of 32 ETH. StakeHound removes these limitations by enabling users to stake without lock-ups and a minimum entry staking requirement. This means that anyone can stake their ETH without needing significant capital. Best of all, users are not required to run their own nodes. 

Apart from these benefits, users who stake on StakeHound will receive stETH, which is a 1:1 wrapped version of the staked ETH, allowing them to freely participate in decentralized finance (DeFi) products and services as lending, borrowing, or yield farming. With this solution, users can now enjoy the high yields of staking, as well as many benefits DeFi has to offer. Overall, StakeHound provides freedom from all the restrictions users are faced when staking with ETH 2.0 while providing additional benefits such as immediate liquidity.

 

Criteria

StakeHound

Ethereum 2.0

No Lock-up period

18 months

No Minimum deposit

32 ETH (US $16,000)

No Reward Slashing

X

No nodes & infrastructure

X

 

Conclusion

Staking with ETH 2.0 has many benefits and promises to provide high yields for users who will participate. However, users have shown skepticism about staking on the ETH2.0 platform because of its restrictive nature and limitations. Alternative liquid staking platforms such as StakeHound allow users to experience all the staking benefits without drawbacks. 

 

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How to maximize your passive income with liquid staking

For those seeking passive income, the yields provided by a traditional bank do not deliver much in the way of returns. This is why an increasing number of users has been shifting to alternatives in the crypto space that allow passive income. Liquid staking is one of these new options that provide yields for users while not locking up their assets. As things are moving fast in the crypto space, it is hard for users to keep up with new products or platforms. This article will help learn about different options that allow earning passive income and guide users on comparing various services.

The emergence of digital assets

When Bitcoin was first introduced, it popularized the concept of being in control of your funds. Bitcoin paved the way for digital assets to be recognized, which allowed newer protocols to spring. These protocols diversified crypto use cases and created new ecosystems, such as the decentralized finance (DeFi) space, built on top of the Ethereum (ETH) network. 

Decentralized Finance (DeFi)

Decentralized finance is the fastest-growing sector in the blockchain space, consisting of various financial products and services built on the blockchain. DeFi uses a combination of tokens, protocols, and smart contracts to provide access to these financial services without the need for a centralized authority. 

DeFi offers a decentralized counterpart to traditional financial services and new ones, including custodial services, collateralized loans, and lending or borrowing. The decentralized nature of these services allows them to be transparent and censorship-resistant. Because it is built on the blockchain, the counterparty risks are significantly reduced. 

Yield farming and passive income in the crypto ecosystem

Users can profit from these new DeFi services as it enables them to participate in yield farming or earn passive income in the crypto ecosystem, such as lending crypto assets. Another method used in the blockchain space to leverage on coins and earn passive income is staking. Staking is one way to gain popularity, especially for users looking to maintain the blockchain networks they use. It is the process of actively participating in transaction validation on a Proof-of-Stake (PoS) blockchain.

DeFi and staking are two of the most exponentially growing verticals within the crypto industry. Both allow users to gain passive rewards on crypto holdings. Can these two mutually exclusive verticals be bridged together?

Different liquid staking platforms

Several staking platforms allow users to enjoy the benefits of staking while also exploring the DeFi vertical. Platforms such as Rocket Pool, StaFi, and Stake DAO provide users with StakedTokens, allowing them to participate in the DeFi sector freely. Providing StakedTokens is a common denominator for all of these platforms, but what other services do they offer? 

Apart from allowing users to stake their non ERC-20 tokens and receive StakedTokens, Rocket Pool and StaFi offer no minimum amounts for staking. This provides opportunities for users to enjoy staking even if they only have small amounts of coins. These two platforms do not require any user-run nodes. Rocket Pool took it up a notch and offered its users no minimum lock-up period for staking. Stake DAO doesn’t provide these services, but it allows users to earn compounding staking interest, and StaFi insures all of its tokens. 

But what if you can enjoy all of these services in just one staking platform? 

StakeHound unlimited staking platform

Other platforms offer limited services when it comes to staking; StakeHound offers a lot more. Like others, this staking platform also provides StakedTokens that allow users to earn staking rewards while participating in the DeFi sector. Anyone can stake with StakeHound because there is no minimum entry and no lock-up period for staking. There is no need for user-run nodes, and most of all, users can earn compounding staking interest while their tokens are insured. 

Stay tuned for further info on ETH staking on StakeHound in the next few days. Users will be able to purchase stETH with their ETH. This stETH can then be used to participate in DeFi activities. This indeed raises the bar for staking platforms. More coins will also follow soon after.

 

Here’s a table comparing StakeHound vs. other offerings:

 

Criteria

StakeHound

Rocket Pool

StaFi

Stake DAO

Staked Tokens provided upon Staking

No Minimum amounts for staking

n/a

No user-run nodes

n/a

No Minimum lock-up period for staking

X

Compounding Staking interest

X n/a

Insured tokens

no n/a

Conclusion

Without platforms like StakeHound, users who want to participate in both staking and DeFi verticals would need a substantial amount of coins. Thankfully, staking platforms allow users to experience both sectors without needing a huge capital investment. But not all platforms offer the same services. With StakeHound, users can now take advantage of the best of both worlds while enjoying its variety of offerings. 

 

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Wrap, earn & stay safe – let your assets securely work for you

Wrapped assets are becoming increasingly popular in the Blockchain ecosystem because they are able to generate many new yield opportunities and use cases for crypto holders. But there are different ways of wrapping assets, some of them assuring more legal and technical security than others. StakeHound is a new service that provides users the best of both worlds: a secure way of wrapping and liquid staking on coins such as Ethereum.

Wrapping is a new original

Simply put, a wrapped token is an asset usually hosted on another Blockchain with a value identical to its underlying asset. Most commonly, these assets can be found on the Ethereum blockchain as an ERC-20 token.

As users are shifting away from centralized exchanges (CEX) to decentralized exchanges (DEX) built on Ethereum, ERC-20 tokens are key to enable listings and trading on a DEX. The way to bridge the gap for non-ERC-20 tokens is through wrapped tokens. 

From a user perspective, this opens not only the door to decentralized exchanges such as Uniswap but also enables many use cases around decentralized finance (DeFi) such as lending, borrowing, or providing liquidity for all kinds of trading pairs. By wrapping their tokens, users can now gain exposure to various services available on the Ethereum blockchain. 

Centralized vs. Decentralized wrapping

An important question to ask here is whether these wrapped tokens are safe. But what are actually the options here? 

There are two main ways of wrapping tokens: wrapping through a centralized institution or through a decentralized method. WBTC or Wrapped Bitcoin is an example of a centralized approach. By wrapping the original Bitcoin through a centralized institution such as Bitgo, users put their tokens with a licensed custodian.

On the other hand, a decentralized method uses smart contracts to verify that the original assets of their wrapped versions exist. Ren Protocol is an example of that. The critical difference between the two is that having a centralized institution as a custodian provides more security and legal protection to users.

Safety First

As we see more and more institutional and retail money flowing into DeFi and specifically into these wrapped assets, we at StakeHound believe that user protection and legal compliance on a global scale is key to building the next generation of financial products.

With StakeHound, users can create wrapped assets that are instantly transferable and can be immediately used in DeFi products and services. Users can soon purchase wrapped assets with their favorite tokens such as ETH, Dash, XZC (Firo), RADIX, or XEM and XYM. The user assets are then put into custody by our institutional-grade custodian partner. StakeHound itself is a Swiss-registered company. 

Wrap and earn yields on your original assets

Once the tokens have been received, StakeHound instantly generates and sends the user a one-to-one ERC-20 representation of their original tokens. The amazing thing for users is the yield options that this allows. 

How is this possible? As StakeHound focuses on wrapping crypto assets with staking options, we can generate yield on the original assets. So, StakeHound stakes the tokens it receives, stakes, and distributes the staking rewards directly to users. This way, the user does not have to do anything. Once every day, the user will simply see an increased token balance in their wallet. 

For the user, this enables a whole new way of earning staking rewards, most notably, because they earn those rewards without locking up their tokens. The staked version generates passive income and can be used at any time, either to trade or to participate in all popular DeFi applications.

For users who are worried about not participating in decentralized finance because of not owning ERC-20 tokens, this innovative technology of wrapping tokens is the answer. With StakeHound, users can now enjoy the benefits of staking without the need to experience the limitations that come with it. But that’s not all. And on top of that, users will also receive HOUND, our native governance token.

Ethereum 2.0 – the perfect use case

With the launch of Ethereum 2.0 in the near future, many users are facing exactly the problem we just described: They can potentially earn yield by staking their ETH, but they have to accept a long lockup period. As their ETH is locked up, it is essentially an illiquid asset in their portfolio. So, for the user, it comes down to choose between yields or liquidity. 

Stakehound solves that problem by giving the user the wrapped version of Ethereum named stETH. This way, the user is receiving a wrapped version of ETH – stETH that is not only liquid; but also secure as it is held by a trustable and regulated custody provider.

 

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stETH: Staking ETH 2.0 with StakeHound without lockup and full usability

StakeHound is thrilled to bring to the market stETH – a liquid wrapped version of ETH 2.0 released on December 1st, 2020 giving immediate liquidity and unlocking the staking rewards for the users.

The highly anticipated ETH (Ethereum) 2.0 release is a set of upgrades that improve the scalability, security, and sustainability of the Ethereum blockchain and is set to go live this December. While it promises of holding out steady staking returns, this network upgrade also creates illiquidity through lockups and the risk of running infrastructure and hosting a validator node. This has made users face a crucial decision: should users stake with ETH 2.0 or not?

ETH 2.0 Staking deal

The Ethereum network has a market cap of US$40.6 billion and is the biggest network to transition from proof-of-work (PoW) to proof-of-stake (PoS). If users choose to join this transition to Ethereum 2.0 Beacon chain launch, would it be best to run your own nodes and complete complicated, tedious work to become a 24/7 service provider?

But before answering this question, the choice that needs to be made is whether or not to stake on Ethereum 2.0. While staking on ETH 2.0 offers rewards, including high yields of up to 10% APR, users are required to stake a minimum of 32 ETH, which is currently equivalent to about US$16,000. Not only that but staked ETH must also be locked for about 18 months, making it illiquid for a long period of time. This makes users’ staked ETH unable to be used for anything else, especially the booming DeFi scene.

On top of this lock-in period and high minimum staking requirements, users will not receive compounding interest on their staked returns. Users’ earnings can also be slashed if they are unable to perform their duties as validators properly, which requires the right hardware for hosting validator nodes. While it seems like staking on ETH 2.0 has many limitations, staking ETH using a third-party provider might be the best option for new or non-technical users, new to the blockchain and staking space.

Liquid Staking of stETH by StakeHound 

StakeHound is an alternative liquid staking platform that allows potential users to enjoy the benefits of staking without experiencing limitations faced when staking on ETH 2.0. Unlike staking on ETH 2.0 and having to maintain your own nodes, StakeHound enables users to stake without lock-ups. There is also no minimum staking requirement, which means anyone can now stake ETH.

Liquid staking is a new innovative approach brought by StakeHound to Etherium users in the easiest and accessible way. stETH can be acquired on the StakeHound Platform by sending ETH 2.0 at the constant 1-on-1 rate. Staked ETH can be then immediately used in the DeFi applications while the staking rewards will be automatically distributed to all the stETH holders and can be fully accessible right away. In other words, StakeHound solves all the limitations with staking on ETH 2.0, whilst offering several benefits such as immediate liquidity and unrestricted access to the staking rewards.

 

In the following table we would like to summarize the benefits of using stETH instead of staking ETH 2.0:

 

Criteria Stake ETH 2.0 Use stETH 

Minimum lock-up period

18 months none

Minimum amount required to stake

32 ETH (US $16,000)

none

Access to the staking rewards

Rewards are locked for 18 months

Rewards are fully accessible

Access to DeFi

No, due to lock up of funds

Yes, fully liquid assets

 

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