What is ETH 2.0?

Ethereum 2.0 is a large–scale upgrade of the basic blockchain network, in which the transition from PoW-mining (Proof-of-Work) to POS (Proof-of-Stake) or staking will be implemented. 

About Staking on Ethereum

By staking ETH, you are able to earn interest on your Ether and participate in the migration to what will be the potentially largest network running on Proof-of-Stake to which all applications currently running on the Ethereum chain will eventually migrate. Visit Lido Finance to stake with us and to learn more about Lido's staking solution.

Risks: Lido is a complex protocol built on Ethereum with many moving parts. While the protocol and the supporting DAO are all designed to ensure stability and decentralization, there are certain risks that need to be taken into account.

What are the differences between ETH and ETH 2.0?

In the current iteration of Ethereum (Eth1), new blocks of transactions are created using Proof of Work, a consensus mechanism in which specialized computers race to be the first to solve a difficult math problem.

Ethereum 2.0 (Eth2) is a Proof of Stake network, in which holders stake their coins to become validators eligible to propose and verify blocks and receive rewards for it. These validators are disincentivized from attempting to cheat by a system of penalties for engaging in malicious behavior.

Because staking does not require any specialized hardware, the barrier to entry to becoming a block producer is dramatically lowered, and anyone holding ETH can participate in securing the network and earning rewards.

What are the different options and requirements to stake?

The only requirement for becoming a staker is owning ETH. Most non-custodial staking services like ours require the full 32 ETH for each validator. If you would like to stake with less than 32 ETH, you may want to look into staking pools. You can also consider running your own validator.

What are the risks of staking on Ethereum 2.0?

The main risks of staking on Ethereum 2.0 are penalties that result in a loss of funds, including slashing, and the possibility that the network will somehow fail to fully launch.

As a leading validator for 10+ Proof of Stake blockchains, we are confident in our ability to avoid slashing and other penalties. 

Tokenized staked ETH: BETH, stETH, aETH

Staking on the Ethereum 2.0 beacon chain can be achieved by different means, such as running your own infrastructure, choosing an exchange, joining a pool, or staking through a professional validator like Terminet. 

By staking on your own or through a fully non-custodial solution, you are choosing to have full control of your assets at all times, with the tradeoff that your rewards are locked until withdrawals are enabled.