4 ms·

so what you are saying is that only very rich people will be able to participate because: - you need good hardware and access to good networks to meet the up-t

by e9 4y ago

so what you are saying is that only very rich people will be able to participate because: - you need good hardware and access to good networks to meet the up-time guarantee s (can be solved with pooling the money I guess) - you need to have enough eth to spare locking up portion of it for years (this can only be solved if you find another person to join the pool and take your place by giving eth to you but there is no incentive for pools to offer this)

pcthrowaway 4y ago
Actually, the second is definitely possible. There are many liquid staking pools, which tokenize your share of the stake, and allow you to trade it (usually at a modest discount to the current price of Ethereum) I believe the majority of staked ETH right now is actually pooled
- e9 4y ago
  I see, so money is locked up but they'll deploy another smart contract that you have some stake in but you still have to find a buyer otherwise you are out of luck and your money is actually locked up
  - pcthrowaway 4y ago
    You don't "have to find a buyer", these are liquid tokens on Ethereum. So if you have 1 ETH, and you stake it with Lido (I think this is the largest staking pool), you get 1 stETH. Though if you want 1 stETH, you often would be better off buying it on a (decentralized) exchange (you could get a discount of 1% to 10%, though theoretically the discount could go higher in the future). when you hold your stETH on-chain, your balance rebases at the rate of the staking reward payout (minus, I think, some amount Lido takes out of this). For example, after a year, if the ETH staking reward was 10%, Lido might take 0.5% (which might go to their DAO, not sure). So you might end up with 1.095 stETH after one year. If you want to sell it, you can do it directly (again, likely at a discount to the price of ETH, though this might change depending on how easy it is to move in and out of staking once the details there are finalized) It's called liquid staking, because the tokenized share of the staking pool are tradable like any other token on Ethereum, meaning you just need a decentralized exchange, or a centralized exchange that supports it (of which I think stETH has a few) ---- edit: to clarify about not having to find a buyer, in case it's not obvious: there are various pools of funds referred to as "liquidity", which users wishing to transact on various markets can make trades from. These pools exist on both decentralized exchanges (through various types of automated market makers) as well as centralized exchanges (classically through an order book, same as the stock market). The only time you have to "find a buyer" (in crypto as well as in the stock market) is when you're looking to do what's called an OTC trade, which is typically just for institutional traders, as trading a large amount via an OTC arrangement will prevent a price movement which can otherwise occur (known as "slippage")
cypress66 4y ago
The "uptime guarantees" are actually incredibly lax. As long as you have over 50% uptime, you make money staking. (there is however a special situation where less than 66% of the network is online therefore it halts and will much more quickly slash those offline)

by e9 4y ago

pcthrowaway 4y ago

Actually, the second is definitely possible. There are many liquid staking pools, which tokenize your share of the stake, and allow you to trade it (usually at a modest discount to the current price of Ethereum) I believe the majority of staked ETH right now is actually pooled

e9 4y ago
I see, so money is locked up but they'll deploy another smart contract that you have some stake in but you still have to find a buyer otherwise you are out of luck and your money is actually locked up
- pcthrowaway 4y ago
  You don't "have to find a buyer", these are liquid tokens on Ethereum. So if you have 1 ETH, and you stake it with Lido (I think this is the largest staking pool), you get 1 stETH. Though if you want 1 stETH, you often would be better off buying it on a (decentralized) exchange (you could get a discount of 1% to 10%, though theoretically the discount could go higher in the future). when you hold your stETH on-chain, your balance rebases at the rate of the staking reward payout (minus, I think, some amount Lido takes out of this). For example, after a year, if the ETH staking reward was 10%, Lido might take 0.5% (which might go to their DAO, not sure). So you might end up with 1.095 stETH after one year. If you want to sell it, you can do it directly (again, likely at a discount to the price of ETH, though this might change depending on how easy it is to move in and out of staking once the details there are finalized) It's called liquid staking, because the tokenized share of the staking pool are tradable like any other token on Ethereum, meaning you just need a decentralized exchange, or a centralized exchange that supports it (of which I think stETH has a few) ---- edit: to clarify about not having to find a buyer, in case it's not obvious: there are various pools of funds referred to as "liquidity", which users wishing to transact on various markets can make trades from. These pools exist on both decentralized exchanges (through various types of automated market makers) as well as centralized exchanges (classically through an order book, same as the stock market). The only time you have to "find a buyer" (in crypto as well as in the stock market) is when you're looking to do what's called an OTC trade, which is typically just for institutional traders, as trading a large amount via an OTC arrangement will prevent a price movement which can otherwise occur (known as "slippage")

cypress66 4y ago

The "uptime guarantees" are actually incredibly lax. As long as you have over 50% uptime, you make money staking. (there is however a special situation where less than 66% of the network is online therefore it halts and will much more quickly slash those offline)