Staking-as-a-Service Launched for Upcoming Ethereum 2.0. Would You Like to Stake Your ETH?

in hive-126009 •  26 days ago  (edited)

Yesterday, leading blockchain solutions provider for Ethereum blockchain viz. Consensys has launched Staking-as-a-Service (SaaS version-2 😃) platform for staking Ethereum. This product is named Codefi.

As we all know that in one of the biggest upgrade, Ethereum is set to move to PoS consensus mechanism from the current PoW architecture. The first phase is expected to launch soon this year.

Ahead of this mainnet upgrade, Consensys has come up with a novel staking solution for all big institutions like Exchanges, custodian wallet providers etc.
In a Press Release issued by Consensys, it talked about the risks and dangers of staking for an average crypto holder:

Some of the risks associated with running your own validator include theft or loss of withdrawal keys, incorrect transfer of funds to the Eth 2 deposit contract, and not to mention hardware or internet connectivity failures which result in a loss of validator rewards.

Aside these risks, running your own validator node requires a minimum investment of 32 ETH. Not every one can afford to hodl and stake 32 ETH.

So Codefi is being launched to ease and help in this situation. Six major industry players have already joined its pilot program including Binance, Crypto.com, DARMA Capital and Huobi Wallet.

Codefi's white-label institutional grade API will enable customers of these institutions to easily stake their ETH. This will also enable lowering the 32 ETH barrier.

But what bothers me is the thought that many customers will tempt to move their ETH from non-custodian wallets to these custodian wallet to earn staking rewards.

What will happen to not your keys, not your crypto campaign!

Personally, I don't hold 32 ETH but won't like to miss whatever staking rewards my little holdings can get. Now I'm in a big dilemma whether I should move my ETH to Exchanges or custodian wallets for the sake of staking rewards or shouldn't compromise my fund's security.

  • So what you are going to do with your ETH holding?
    Will you stake your ETH?

I really want to know your opinion on this.

Thank you!

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Solid read ! Upvoted by the @hodlcommunity

Thank you! :)

I will probably buy some ETH to stake them.

We need this PoS as I cannot even play/trade card games such as Gods Unchained because of fees being too high.

I'd love to buy more ETH too but unfortunately can't afford at this moment.
May be, I can stake my ETH in some custodian wallet and take a loan against it to reduce some of my risks of giving away my ownership ;)

should i go here or just in blockfi, ty

That's the question!

Blockfi, Binance or Crypto.com, all are custodian wallets. Let's see how this space evolves once ETH 2.0 is there.

For me, it depends on the opportunity cost of missed staking rewards. If I can afford to miss staking reward, I'd like to hold my ETH in a non-custodian wallet. But let's see.

Personally, I plan to stake with my own validator node. I've been doing ETH mining for a few years now anyway, so dealing with hardware and managing my own keys is something I'm used to already.

That said, I don't necessarily see a problem with Staking-As-A-Service. I think it's a reasonable thing to offer for those not willing or able to go the standard staking route.

Hmm, you must be having a sizeable investment in ETH through mining. Good for you that you know how to manage staking with your own validator node.

Staking as a Service does provide an option for small and non-techie investors like me. But I was only thinking about safety of my funds if I move them to any SaaS provider from my non-custodian wallets. But that's a little trade off, we'll need to make.
Thanks for your opinion on it!