Try Quests to earn cryptoOpen Analytics Bounty: ETH
Ethereum Liquid staking and Liquid staking protocols
What is Ethereum?
Launched in July 2015, Ethereum is a blockchain protocol that miners use to produce Ethereum (also known as Ether), its cryptocurrency. As it is stored on a blockchain, it’s an incredibly secured cryptocurrency and appeals to beginning investors and experts. However, it has a severe environmental impact since a transaction on the Ethereum blockchain uses the same amount of energy that a single U.S. household uses in a week.
While Ethereum is popular worldwide, most nodes (or computers) operating on the Ethereum network are in the United States.
Ethereum 2.0 is a significant upgrade to the protocol and is planned to launch on September 15, 2022. The update includes making Ethereum more scalable to support more transactions, adding security, and becoming more environmentally friendly. Many exchanges were prohibiting Ethereum staking or withdrawing stakes until the merge of ETH and ETH 2.0 is complete, so it’s essential to understand the implications of staking Ethereum both before and after the launch.
How does Ethereum staking work?
You can stake Ethereum in several ways, but you’ll want to consider more than just yields. For example, some staking platforms are custodial, which means you don’t control your crypto in a private wallet.
1.Exchanges 2.Running a validator 3.Validator pools 4.Liquid staking
Source
What is Liquid Staking?
The global network of ETH holders is responsible for the network’s security. This security is maintained by staking. By staking tokens, Ethereum’s liquidity flows to trusted validators, the guardians of Ethereum decentralization. However, staking has a significant problem; staked ETH is locked-up and can’t be used in any promising Ethereum web3 projects.
Ethereum staking has quickly become a popular topic for ETH holders as it gives any user the ability to help secure the network and receive rewards by validating transactions. Currently, 11% of all circulating ETH are being staked, worth over 22 billion dollars.
With institutional liquid staking, you receive a receipt token representing your staked ETH. This token can then be used across Defi and more, allowing institutions to earn yield while earning staking rewards.
Advantages of liquid staking
If there’s a downside to staking Ethereum, it’s the long-term commitment. Staked ETH can’t be withdrawn because the blockchain doesn’t support that feature. Liquid staking offers a solution with tokens that can earn staking rewards yet can be withdrawn or used in many ways. You might use un-staked ETH now. Typically, liquid staking services swap your Ethereum token for a receipt token, which you keep in a private crypto wallet as proof of ownership and can be used for trading. In contrast, the original token continues to earn rewards.
In addition to flexibility, the advantage of liquid staking is that you don’t have to take any additional actions to stake your tokens. Receipt token balances in your wallet are revalued frequently to account for earnings from staking.
Two extensive services in liquid staking include Lido Finance and Rocket Pool. Each uses its ERC20 token as an ETH equivalent.
Liquid staking offers the benefits of staking without restrictions. Stake it, spend it, sell it, or even use your stETH or rETH as collateral for on-chain Defi lending.
Other liquid staking platforms include:
Yields vary based on network needs, but in most cases, liquid staking provides yields similar to other ETH staking methods, currently about 4%.
RooketPool
Rocket Pool is an Ethereum 2.0 staking pool. The protocol seeks to lower both the capital and hardware requirements for staking on ETH 2.0, adding to the decentralization and security of Ethereum. To achieve this, Rocket Pool allows users to stake trustlessly towards a network of node operators.
Ankr protocol
Ankr is a blockchain-based cross-chain infrastructure with a DeFi platform that enables staking and dApp development. It hosts various protocols related to the development of dApps and the DeFi sector.
Ankr was designed and developed based on the vision of a new internet that is based on distributed ledger technology, with applications, protocols, and systems that are decentralized, more private, and secure for users. The main idea is to remove the need for central authorities and middlemen, giving the ownership and control over data and applications to users and network participants.
Bitcoin Suisse
Bitcoin Suisse is an established and trusted counterparty. Our Ethereum 2 staking service includes all technical setup and maintenance, including any changes to the Ethereum protocol during ETH2 development. There is no charge for converting ETH to ETH2 during the transition to Ethereum 2 with Bitcoin Suisse.
Methodology
In this dashboard, Top ETH liquid staking platforms like Ankr, Lido, Rocket pool, Cream, Stake fish, Stakewise, Shared stake, Bitcoin Suisse, and Kraken is analyzed for the following metrics in the
- Daily amount of deposited ETH and depositors
- Daily and total amount of deposited ETH
- Daily and total number of ETH depositers
- Daily and total USD amount of deposited ETH
- Cumulative amount and USD amount of deposited ETH
- Stakers distribution
- Staked ETH distribution
- Top ETH stakers
- Overall information of ETH liquid staking
You can write the desired number of the days at the top of the page and the charts will update automaticaly for your desired period.
Daily amount of deposited ETH and depositors
Daily and total amount of deposited ETH
Daily and total number of ETH depositers
Daily and total USD amount of deposited ETH
Cumulative amount and USD amount of deposited ETH
Stakers distribution
Staked ETH distribution
Top ETH stakers
Overall information of ETH liquid staking
Observation
Using the above chart, we can find the relation between deposited ETH amount and depositers number.
The maximum deposited ETH amount was 18.92K on August 24 and the maximum number of depositers was 2059 on August 26.
Observation
Using the above chart, we can find the daily deposited ETH amount on different liquid staking protocols. The maximum deposited ETH amount was 17.856K on August 24 on the Kraken exchange. From the chart, we notice during September, as the date got closer to the Merge, the amount of deposited ETH increased, and the maximum of staked ETH belongs to the previous day, September 15.
The total amount deposited ETH to Kraken is almost half of the total deposited ETH in all desired protocols.
Observation
Using the above chart, we can find the daily ETH depositors to different liquid staking protocols. The maximum number of depositors on a single protocol was 1772 on August 26 on the Rocket pool. But the noteworthy point is that there is no sign of Rocket pool depositors after August 28. Unlike the deposited ETH daily chart in which Kraken had dominance, in this chart, we see that Lido finance has about 80 of the total depositors.
Observation
Using the above chart, we can find the daily ETH depositors to different liquid staking protocols. The maximum number of depositors on a single protocol was 1772 on August 26 on the Rocket pool. But the noteworthy point is that there is no sign of Rocket pool depositors after August 28. Unlike the deposited ETH daily chart in which Kraken had dominance, in this chart, we see that Lido finance has about 80 of the total depositors.
Observation
We can use these charts to confirm what we had before in the daily and total charts of the deposited ETH and depositors.
Observation
Using these charts, we can compare different liquid staking protocols in the case of stakes distribution. We see Lido had the greatest distribution among others, and we can almost find all kinds of stakes distribution on it. Rocket pool has second place, followed by Stakewise and Ankr.
Observation
Using this chart, we can compare different liquid staking protocols in the case of staked ETH distribution.
We see Lido had the greatest distribution among others, and we can almost find all distribution of staked ETH on it.
Rocket pool has second place, followed by Stakewise and Ankr.
Observation
Using this chart, we can find the top stakers of different liquid staking protocols with total of their ETH staked amount.
Observation
We can find a brief summary of what we had all over this dashboard using this chart.
Conclusion
In this dashboard, we used different metrics to compare various ETH liquid staking providers, and we found some interesting points on charts and tried to explain them below each chart. I hope you find this dashboard useful to get deep into ETH liquid staking topic.
Inroduction
Unfortunately I wasn’t able to claim a spot on the Merge Staking Providers bounty and since it is one faviorate topics I decided to devote this dashboard to Ethereum Liquid staking and Liquid staking protocols.