While Ethereum 2.0 staking allows validators to be compensated for securing the network, ‘Ethereum 2.0 Staking Earn’ is its own product, providing users rewards from several DeFi products.
On Ethereum 2.0, the PoS-powered blockchain will bundle 32 blocks of transactions during each validation round. Each block bundle is known as an epoch, which are finalized transactions.
During the validation process, also known as “attesting,” the Beacon Chain assigns groups of stakers into “committees” of 128, who are then given a shard block. A base reward will determine the issuing rate of Ethereum 2.0. As the number of validators connected to Ethereum 2.0 increases, the lower the base reward will be per validator. This is true since the base reward is inversely proportional to the square root of the balance of Ethereum 2.0 validators.
In comparison, Eth2.0 Staking Earn is a product from Matrixport — a financial services platform based in Asia. This product enables users to participate in Ethereum 2.0 staking with a lower threshold while benefiting from rewards associated with other DeFi projects.
Eth2.0 Staking Earn strives to provide a greater yield through established DeFi protocols. The team behind Matrixport shares that the platform is “backed by industry-leading staking providers,” including Lido, the largest decentralized contract for Ethereum 2.0 staking, with over 540,000 ETH staked and Curve.
By utilizing Curve, users benefit from stable currency exchange services with low slippage and low transaction fees. As a result, Ethereum 2.0 Staking Earn results in yields of between 3 and 10% as a result of the 2.30 %of Ethereum 2.0 staking reward, 6.81% of DeFi mining token revenue and 0.14 transaction fee income.
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Ray Schuetz received a Masters Degree in computer science from The University of Texas (Austin). Ray has been working as a full-time blockchain consultant for the past 3 years. In his spare time, Ray enjoys writing for EthereumCryptocurrency.com and other crypto news publications.