Eth2 Staking for Institutions: January 2021 Update
Staking on Ethereum 2.0 has gained enormous traction since the launch of the Beacon Chain on December 1st 2020. Over 2,655,074 ETH has been staked, with the average APR now at 9.9% for validators.
As the Ethereum ecosystem rallies around its new Proof of Stake mechanism, more and more organizations want to earn rewards in return for maintaining the security of the Ethereum 2.0 network. However, setting up staking infrastructure and maintaining validator software requires complex technology development and a solid security expertise.
Last week ConsenSys hosted a webinar discussing the learnings and experience of early institutional staking participants—including Microsoft, Ledger, and Securosys—securing Ethereum with Codefi Staking.
Here are a few of the top takeaways from our panel:
Jerome de Tychey, Global Head of Client Success at Ledger
- “The best use case for Eth2 staking is for exchanges. They are the entry point of our ecosystem. Look at who has made the biggest deposits: 40% Kraken, 10% Binance, 5 % Bitcoin Suisse…”
- “Institutions have a great opportunity to generate yield on their ETH position as right now, the rate is around 10%, so there is 10% to grab on your ETH holding as long as you stay online and protect your keys properly—with the help of service providers like Codefi Staking.”
Tomas Forgac, Product Lead at Securosys
- “The biggest challenge for large ETH holders is to stake properly and safely in a non custodial fashion. We built an integration with Codefi Staking to embed a protection mechanism, directly from the UI. This is very exciting for institutions that are looking into the long term, especially after Phase 2 gets rolled out.”
Cale Teeter, Senior Software Engineer at Microsoft
- “Custody solutions are the core concern for Eth2 Staking first movers, so bringing confidence into the system must be the priority. This is the reason we’ve partnered with Codefi Staking—to contribute to building a resilient architecture through Azure, and to avoid any slashes and penalties.”
Philip Matov, Business Development Lead at Codefi Staking
- “When considering what success looks like for Codefi Staking, securing the maximum reward amount generated for our clients is a no brainer, but we need to re-assert that no matter how diverse or resilient our solution is, we urge Eth2 stakers to diversify their stakes with multiple service providers as the most important thing is to secure the network.”
With Codefi Staking, institutions can stake their own ETH or their customers’ ETH without the difficulties of operating independent validator nodes. We offer a staking-as-service platform built with institutional-grade features for exchanges, custodians, funds, wallets, and other eager organizations.