Last Updated on December 20, 2021
Imposes imitations on users who would like to become validators:
- Cannot unstake their ETH until transactions are enabled
- Minimum amount (32 ETH) required to participate
- No date set for a change, users may have to wait years to get back staked ETH.
Refers to the process of staking tokens through a centralized exchange service. This allows users to stake and unstake at any time — they are able to withdraw their rewards as they see fit, but exchanges will apply a percentage fee on their rewards. CONS: risk of network centralization
Users can stake any amount of Ethereum and to effectively unstake their ETH without the requirement of transactions being enabled, A user would deposit their ETH into a third-party application. This app would deposit this user’s ETH into the Ethereum deposit contract for them (through the use of running their own validators), and in return would mint a representative ETH token for them (eg. stETH).
This representative token will thereby let users maintain their ETH liquidity, allowing them to transfer their ETH wherever they desire — all while still earning Ethereum staking rewards.