Giottus, India’s top-rated crypto exchange has rolled out Ethereum (ETH) staking for its users. This is in addition to the other supported coins of Giottus, which include Cardano (ADA), Polygon (MATIC), Solana (SOL), and Tron (TRX).
What is staking?
Staking is a way of having your crypto assets work and you earn rewards on it. It is a method that involves engaging crypto assets to support a Proof-of-Stake (PoS) blockchain network and confirm transactions. Protocols like Bitcoin, allow miners to earn rewards for creating blocks. PoS allows Stakers to claim the rewards for creating blocks. In simple terms, staking is a way of having passive crypto assets earn rewards.
Staking is a good option for investors interested in generating yields on their long-term investments and who do not care about short-term price volatility.
Ethereum Merge and Staking
Ethereum Merge is an upgrade to the Ethereum network that aims to improve its security and scalability. Following the Merge, Ethereum’s transition from a labor-intensive proof-of-work (PoW) to a less demanding proof-of-stake (PoS) consensus mechanism is secured by the network’s validators as a Proof-of-Stake blockchain. As a result, new ETH coins could only be verified by Staking.
Returns
Returns on Staking vary from asset to asset. With Giottus, the expected annual percentage yield (APY) is as follows: Ethereum (7%), TRX (7%), ADA (6%), SOL (6%), and MATIC (10%).
Customers will also be earning mining rewards, transaction fees, and maximal extractable value (MEV) earnings on their staked ETH. These rewards will be automatically re-staked and accrue to their wallet.
There is no minimum time to hold your ETH for staking. One can start with a minimum of Rs.100 to a maximum of 30 ETH tokens. There is no fee for staking with Giottus as well.
Staking ETH with Giottus
Staking is the best option for people who want to hold onto their assets for a long time, regardless of price fluctuations.
Giottus will be using Lido as the staking partner. Lido is a liquid staking solution for ETH backed by industry-leading staking providers. It lets users stake their ETH without locking assets or maintaining infrastructure as they are participating in on-chain activities. It enables users to engage in on-chain activities while staking their ETH without locking assets or maintaining infrastructure.
For the time being, the rewards from staking will be paid out as stETH only. If the users wish to unstake, they can sell stETH in the market. Giottus will also open trading of stETH/ETH pair shortly.
Staking and benefits
Staking allows risk-free earning, but it is possible only on select protocols that use Proof-of-Stake (PoS) algorithm.
Staking does not come with guaranteed interest as the yield is distributed among all stakers. Actual rewards will be based on the number of participants in staking. However, based on historical data, we can calculate expected returns for each protocol.
Staking cryptocurrency assets is a simple way to earn income on your holdings. Compared to cryptocurrency mining, crypto staking does not require any special equipment. Using this, participants are helping to maintain the security and efficiency of the blockchain in a more environmentally friendly manner than mining.
FD and Staking
FD and Staking are both methods of passive investment. FD involves generating yield through DeFi lending and comes with a guaranteed interest. Staking allows risk-free earning, but it is possible only on select protocols that use the PoS mechanism. Staking does not come with guaranteed interest as the yield is distributed among all stakers. Actual rewards will be based on the number of participants in Staking.
