OKEx is already one of the world-leading cryptocurrency spot and derivatives exchanges and they have now announced that they will be launching an Ethereum 2.0 staking service, which will provide one-click staking options of ETH for BETH at a ratio of 1:1. Not only that but they will be eligible to receive a competitive daily yield as a result. The idea is to increase the liquidity of the staking process, which will allow it to engage more fully with the Ethereum 2.0 proof-of-stake process.
What is it?
Ethereum was first introduced in 2015, when this blockchain was first released. And ever since that time there have been a number of advancements and improvements that took place. In fact, there have been developments of decentralized applications and blockchain projects that have occurred at extensive speeds and have only continued to improve over time. This is likely to continue as well since Ethereum serves as the backbone for many of these developments and continues to be utilized in new ways.
It was the first coin offerings in 2017 and the DeFi movement that seems to have really helped Ethereum get off and running. They’ve been able to create an alternative system that seems likely to truly disrupt the financial market in the way that those all for digital currency have been clamoring for quite some time now. OKEx is only one of the many systems that has stood behind Ethereum 2.0 and looked for this currency to continue doing what it has been for so long.
There have been some drawbacks to Ethereum, however, and that’s why it’s important for OKEx and others to continue to back the system and expand its options. It has had trouble with getting larger quantities of users, for example, which is primarily due to the bottlenecks that Ethereum 1.0 has been subject to. Their transaction rate per second is only about 15. Not only that but there have been higher fees and the decelerated transaction processing time makes it difficult or unlikely that others will want to continue getting involved.
The development of the Beacon chain is expected to take care of this problem. In fact, Ethereum 2.0 is expected to handle 100,000 transactions per second, which will make the entire network far more useful overall. And as the first phase of the system has taken place, OKEx is starting to jump into the process and has decided to offer Ethereum staking for their users. The idea is that this will aid Ethereum in continuing to improve their current offerings to become the proof-of-stake blockchain that they want to be.
What Does it Mean for the User?
What does all of this mean for users of OKEx? It means that you’re going to have the opportunity to get involved with something new. You’re going to have the opportunity to join up before everyone else does and beat the rush, which can lead to several additional offerings that OKEx is providing as well. They are covering operating expenses related to being a validator and taking on the risks of penalties associated. Plus they will be distributing on-chain profits and offering USDT rewards.
For users, you’ll be getting in on the ground floor of something that could be the next big thing in blockchain technology and the start of the DeFi movement. But of course, you want to make sure that you’re working on these things with a platform that really knows what they’re doing. That means you need a platform that you can trust, and that’s where OKEx comes in. They have a great deal of offerings for their users outside of the Ethereum 2.0 system.
OKEx is already one of the world-leading options for cryptocurrency spot trading and derivatives. In fact, they have a large marketplace with plenty of types of cryptocurrency assets as well as the ability to hedge risks, invest in multiple styles of currency and more. They also have futures, perpetual swaps and options for most all major cryptocurrencies, which provides even more opportunities and flexibility for those who invest with the platform.
With all of these benefits, you can get a great deal out of investing with OKEx, whether you do decide to jump into the Ethereum 2.0 stake process or not. But you’re definitely going to have even more benefits if you decide to try this system and see what you can earn in rewards and yield. In fact, there’s a whole lot more available than you might think, even as a brand new trader.
What are the Key Improvements Being Made?
The new Ethereum system uses something called proof-of-stake versus the old system that used proof-of-work. This protocol means that there is no need for computing power the way the old system required. It also ensures that validators are used to verify transactions and create blocks rather than miners who would need to use their energy to gain currency of any type.
The new process means that Ethereum holders will have better benefits and participation from the process. By maintaining the network through staking they will be able to cut down on some of the downsides like complicated hardware and even electricity usage. This process is an excellent one for the industry and it means that it will start improving the way that the blockchain functions and the way that people get involved with Ethereum and other currencies.
The process for current Ethereum investors begins with transitioning Ethereum 1.0 users to Ethereum 2.0. A process which is being carried out via a one way bridge, which allows the user to lock in their current Ethereum to get an equal amount in the new version. This allows them to stake their credited currency (if they so choose) in order to earn additional rewards. This makes the entire process simple and non-reversible.
The risk is that currency is locked into this process and that means that if the currency drops in value there is nothing that the user can do about it. They are locked in until the end of the period, which could mean attempting to ride out whatever is happening to the currency at the time and might mean losing money in the end. The idea, however, is that it will provide additional support for the staking process as well as overall scalability, making some dramatic changes for current ecosystems.
In this process, it is expected that DeFi will become even more competitive. As it stands now the system is not competitive compared to credit card companies like Visa. For example, the Ethereum network can process only around 50 transactions per second, while the Visa network processes thousands. By transitioning to Ethereum 2.0 it’s already known that transaction volume will increase and the new system will be better able to handle the increased load as well. It will be able to execute transactions much more quickly to compete with traditional methods.
This system also offers more scalability benefits because it allows for new implementations. These include sharding and more, which can increase the number of transactions that are carried out even further. This would make the DeFi apps more similar to what’s available with other traditional solutions and would provide a competitive advantage for those who are looking to change up the way that they interact with financial solutions overall.
This entire process is also expected to remove the ‘gas’ fee that is currently associated with Ethereum. This fee is the cost of performing transactions and the fees have, at times, been excessive. With the transition over to Ethereum 2.0, however, it’s possible to remove this fee and therefore increase the profitability for users. It also helps to cut down on the overall congestion that was otherwise taking place within the system. There will likely be more users and more transactions as this fee is eliminated because it allows for easier transaction validation.
The Launch of Ethereum 2.0 Staking
Ethereum staking is being implemented in OKEx before December 17, 2020. This process will allow users to stake ETH with a single click and receive BETH at a ratio of 1:1. Not only that but it will offer yield options each day, which will the user even more. But there are also other benefits to this process.
OKEx will be covering the validator operating expenses for Ethereum 2.0, which decreases costs for users. Likewise, they will assume the risk of validator penalties, taking away some of the risk for most users. Not only that but they will be distributing all on-chain profits and they are offering additional USDT rewards for those who choose to participate in Ethereum 2.0 staking through their platform. You just have to take the time to get comfortable and get started with the process.
The rules for this type of staking include that you must stake ETH to earn BETH at the 1:1 ratio. You will then receive yield based on how many staked tokens are on-chain and the lock up times with an estimated return between 6% and 20%. It will then be distributed at 3:00 am UTC based on the staked funds you had the day before.
In order to start the staking process, you much stake at least 0.1 ETH and once the staking system has been evaluated OKEx is expected to open BETH trading. Keep in mind that once you stake your assets you will be locked in and will not be able to redeem your stake until OKEx enters into Ethereum 2.0 Phase 1.5, an estimated two year forward date.
And finally, rewards will be laid out prior to the start of the activity, which will be carried out between December 17 and December 31 of 2020. In order to receive a reward, however, you must complete KYC2 identity verification.
Getting started is simple. All you need to do is go to the ‘Finance’ section then ‘Earn and make your stake. Or, on the app, click on the ‘Earn/DeFi’ option and choose to make your stake.
The ETH-Themed Mega Gift Package
Ethereum 2.0 is new for OKEx and as a result, they’ve decided to offer a mega gift package for both new and exiting users who have assisted and supported them through this process. So, you have the opportunity to get involved with the lucky draw. Users who are brand new need to register and then finish the KYC 2. This will give them a single entry into the drawing. If they execute spot trading using ETH/USDT on the platform with no less than 500 USDT they also get a chance in the drawing.
Those who are existing users can execute spot trades of ETH/USDT that are at least 1,000 USDT and get a chance in the drawing. Plus, those who are existing users can execute ETH derivatives trades and get a chance at the drawing if they meet set criteria of single derivatives breaching 3,000 USDT. For new users, the single derivatives amount is 2,000 USDT.
No matter how many times you complete each of these situations you are still only able to get up to three entries into the drawing and can only win a single prize, though if they are offered multiple prizes they will be given the one that has the highest value.
When it comes to getting started with Ethereum 2.0, this staking process is most definitely the way to go. It allows users to look more closely at the options and to get involved in a system that is brand new. Even those who don’t currently have Ethereum 1.0 can get started with Ethereum 2.0. The key is to get in while the whole process is still new and to get a part of the benefits and rewards that are being offered. OKEx will provide additional benefits by taking on nearly all of the risk associated with the process and providing rewards for those who choose to invest with them and this new proof-of-stake process.
