$2 million for a staking solution on Ethereum 2.0
Staking ETH on Ethereum 2.0’s new blockchain, Beacon Chain, means immobilizing them for many months.
In fact, until the current blockchain is „hooked“ to the new one, ETHs immobilised on Bitcoin Fast Profit the Ethereum 2.0 deposit contract cannot be unlocked.
This will happen in several months, perhaps in 2021 or maybe even 2022, so those who want to put ETH in staking today must necessarily keep them immobilised for several months.
However, DeFi’s tools allow you to get around this problem.
One such tool, Lido, is about to launch its own mainnet that will allow users to stack ETH on its protocol, giving users an equal amount of stETH tokens (staked ETH) in return.
In this way, it will be possible to stack one’s own ETH tokens, but have other stETH tokens representing them as equals, for use in other DeFi protocols.
The stETH tokens can only be redeemed when the staked ETH tokens are released, i.e. when the Beacon Chain is linked to the current Ethereum blockchain, by returning them to the Lido protocol and getting back all the staked ETH in return.
In return, Lido keeps a 10% commission on the rewards received for staking, but unlike other similar solutions, such as those offered by centralised exchanges, it is not a custodian.
A decentralised solution for staking with Ethereum 2.0
This is a decentralised solution that allows users to have full control of their private keys, i.e. exclusive ownership of ETH and stETH.
Lido Finance has announced that it has raised $2m in funding for the launch of its mainnet, which is expected to take place in December.
Investors include Semantic Ventures, ParaFi Capital, Terra, Stakefish and Staking Facilities, as well as business angels such as MakerDAO’s Rune Christensen, Aave’s Stani Kulechov and Synthetix’s Kain Warwick.
In fact, the testnet of the protocol has already been available on Ethereum Goerli since the end of November, but the testing process has not yet been completed. Thanks to this new funding, the launch of the mainnet should be possible by the end of the month.