Security, increased transaction speed, new consensus algorithm: all this is Ethereum 2.0. Evolution called Serenity actively breaks into the crypto market and represents the fourth stage of the platform, which can embrace the whole world: Serenity, or ETH 2.0. Here’s our Full Guide on Ethereum 2.0.
What Is Staking?
Staking is a process where users transfer their crypto funds to a blockchain, receiving a reward in the form of new coins in return. Staking services are offered by a block-keeper network that runs on a Proof-of-Stake (PoS) algorithm. Staking can be considered as an alternative to mining because crypto coins are stored by using a web-connected wallet.
The principle of receiving profit is similar to receiving dividends when buying shares or making a deposit. At the same time, it is much easier to make a profit in this way, because there is no need to buy unique, expensive equipment, as in the case of traditional mining.
How Does It Work?
Proof of Stake mining is the process of keeping the coins in the wallet unlocked, and the wallet must be connected to the network 24/7. The creator of the next block will receive a reward, and he is selected based on the share of his coins in the total system.
The miner makes a “bet” with his coins, puts them into the public network, and leaves there, without touching. Their coins are a pledge; they form a “share” of miner coins in the system. Based on this “share”, the one who signs the next block is determined. To participate in the minimum bid amount is not required. However, the more coins you bet and the longer you leave them in the system, the more chances you have to win the reward rate.
Guarda ETH 2.0 Staking Pool
Guarda Wallet launched its own ETH staking pool. Now, to receive rewards for ETH staking you don’t need to stake 32 ETH - with Guarda ETH staking pool you can start earning rewards with only 0.1 ETH.
Currently, you can earn up to 16% APY. You don’t have to worry about the safety of your funds, as for each ETH token users stake Guarda generates GETH tokens and sends them to users. These tokens are minted for you in a 1:1 ratio to SETH and will become tradable soon. It is also worth mentioning that Guarda Wallet rewards stakes with GETH tokens when users stake ETH and send as a reward every month.
How Is The Reward Calculated?
The service fee is 10% of the rewards. We take the whole staking reward and deduct 10% of the fee from it. Then we distribute the remaining 90% to all GETH token holders in proportion to their balance. For example, if you deposit 1 ETH, in a month you will receive:
- 1 ETH x 16% (current annual yield) / 12 = 0.013 ETH
- 0.013 ETH - 10% (Service fee) = 0.0117 ETH
Every month after depositing 1 ETH you will get 0.0117 ETH in GETH tokens what is roughly a 16% annual yield.
Can I Withdraw Staked ETH?
According to the Ethereum staking rules, staked Ether and rewards are frozen in the network until the launch of phase 2 of Ethereum 2.0 (approx. in 2 years) thus currently it is impossible to withdraw ETH.
However, to provide our users with a more flexible option, we will issue ERC-20 GETH tokens, Guarded Ether, which you will receive in a 1:1 ratio to ETH. You will be able to sell this token using Defi exchanges like Uniswap while your Ether is locked.
Stake ETH
