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Care to comment on the Ethereum Foundation now removing all reference to a date in which “staked” ETH can be withdrawn? Or perhaps commenting on the fact that t

Care to comment on the Ethereum Foundation now removing all reference to a date in which “staked” ETH can be withdrawn? Or perhaps commenting on the fact that to become a validator requires 23 ETH, or approximately $28,000 of upfront investment that cannot be withdrawn in order to achieve your stated yield?

latchkey 4y ago
32 ETH
dragontamer 4y ago
Indeed. It should be noted that the Fed Rate / Risk Free Rate / Overnight lending rate is... well... overnight lending. Its the rate you get for a 1-day loan for tomorrow. Its about as risk-free as you can get. So when the Fed Rate goes from 3% to 3.75% or whatever (for overnight loans), all other loans (ie: riskier 6-month, or 12-month, or 10-year, etc. etc.) have to go up in yields to compensate. ------- Its difficult to compare Ethereum "staking" with traditional finance, because traditional finance has much better guarantees. My SWVXX and VMFXX money at 3.6% can be withdrawn (or deposited) at 5pm every business day. Its extremely liquid, far more so than Ethereum staking. Further adding to the complications, Coinbase allows you to trade cbETH (wrapped Ethereum), which is Ethereum that has been staked at Coinbase. Its not entirely clear when cbETH can be withdrawn and turned back into ETH.
- latchkey 4y ago
  There are multiple liquid ETH staking pools where you deposit your ETH and get their token in return. You don't even need the full 32. https://ethereum.org/en/staking/pools/ https://ethereum.org/en/staking/pools/ These tokens have also been trading at discounts to ETH if you want to just buy and hold the token, which should eventually reach parity to ETH. That can also be an additional gain, but incurs additional risk.
  - dragontamer 4y ago
    > which should eventually reach parity to ETH You're ignoring the issue here. When I'm talking Fed Rate, its _OVERNIGHT LENDING_. Its not "eventually reach parity with dollar", its "this will turn into a real dollar tomorrow". Its a loan that is as safe as you can possibly get. You're trying to compare Ethereum staking with the Fed's overnight lending. The risk/reward structures at play here are completely different. The Fed Rate is the shortest, and safest, loan in the entire marketplace. Ethereum staking is kinda similar in some respects (as a yield granted by the "Ethereum system" itself, its kinda sorta like a central bank rate), but it... really isn't. Because it has an ill-specified withdrawal time.
    - latchkey 4y ago
      > You're trying to compare Ethereum staking with the Fed's overnight lending. I don't know how you're drawing that conclusion from my comment. I am responding to your comment about coinbase and suggesting that they aren't the only product on the market. I also wanted to point out the fact that there are other actually liquid solutions to eth staking. The coinbase product is more like staking as a service, but centralized, and not recommended. https://ethereum.org/en/staking/#how-to-stake-your-eth https://ethereum.org/en/staking/#how-to-stake-your-eth

latchkey 4y ago

32 ETH

dragontamer 4y ago

Indeed. It should be noted that the Fed Rate / Risk Free Rate / Overnight lending rate is... well... overnight lending. Its the rate you get for a 1-day loan for tomorrow. Its about as risk-free as you can get. So when the Fed Rate goes from 3% to 3.75% or whatever (for overnight loans), all other loans (ie: riskier 6-month, or 12-month, or 10-year, etc. etc.) have to go up in yields to compensate. ------- Its difficult to compare Ethereum "staking" with traditional finance, because traditional finance has much better guarantees. My SWVXX and VMFXX money at 3.6% can be withdrawn (or deposited) at 5pm every business day. Its extremely liquid, far more so than Ethereum staking. Further adding to the complications, Coinbase allows you to trade cbETH (wrapped Ethereum), which is Ethereum that has been staked at Coinbase. Its not entirely clear when cbETH can be withdrawn and turned back into ETH.

latchkey 4y ago
There are multiple liquid ETH staking pools where you deposit your ETH and get their token in return. You don't even need the full 32. https://ethereum.org/en/staking/pools/ https://ethereum.org/en/staking/pools/ These tokens have also been trading at discounts to ETH if you want to just buy and hold the token, which should eventually reach parity to ETH. That can also be an additional gain, but incurs additional risk.
- dragontamer 4y ago
  > which should eventually reach parity to ETH You're ignoring the issue here. When I'm talking Fed Rate, its _OVERNIGHT LENDING_. Its not "eventually reach parity with dollar", its "this will turn into a real dollar tomorrow". Its a loan that is as safe as you can possibly get. You're trying to compare Ethereum staking with the Fed's overnight lending. The risk/reward structures at play here are completely different. The Fed Rate is the shortest, and safest, loan in the entire marketplace. Ethereum staking is kinda similar in some respects (as a yield granted by the "Ethereum system" itself, its kinda sorta like a central bank rate), but it... really isn't. Because it has an ill-specified withdrawal time.
  - latchkey 4y ago
    > You're trying to compare Ethereum staking with the Fed's overnight lending. I don't know how you're drawing that conclusion from my comment. I am responding to your comment about coinbase and suggesting that they aren't the only product on the market. I also wanted to point out the fact that there are other actually liquid solutions to eth staking. The coinbase product is more like staking as a service, but centralized, and not recommended. https://ethereum.org/en/staking/#how-to-stake-your-eth https://ethereum.org/en/staking/#how-to-stake-your-eth