Very relevant content for a free article, I'm waiting for the upcoming deep dives :)
I set up a Rocket Pool node about a month ago, I prefer to participate in the decentralization of the network even if it increases a bit the risks, and it makes me feel more involved in the ecosystem!
Glad to hear, independent staking is something long term ETH investors should do, a more decentralized network increases the long term value of ETH by removing censorship risk. If it becomes OFAChain then non-US transactions go to a competitor which is bad for value accrual through burning tx fees. Best case is ETH to remain a credibly neutral global settlement layer and people like you are needed!
I don’t understand the risk/reward. Why would someone make 32+ ETH illiquid until when/if a complex software upgrade is performed, especially when the ~5% staking reward approximates the risk free interest rate on liquid US treasuries?
Looks like voluntarily taking on the risk for the developers in exchange for minimal upside whilst exposing oneself to losing the 32+ ETH with no recourse for recovery?
No, I don't think so. They make it really simple to create a validator node. I think technically you send your coins to their contract, but you still hold the private key. And as long as the contract is safe, only you with your private key can withdraw your coins from the contract once unstaking is possible.
Was referring to a risk disclosure from Lido that ~13% of ETH backing the staked ETH is under DAO-managed keys. Theoretically if these are hacked stETH depegs to 0.87. Yes you can use your own keys when joining Lido now.
Apologies if this has been covered before, but how do staking risks through LSDs compare to staking through Ledger (or similar storage device). If staking through Ledger, its still your keys, your coins, right?
Hey guys, in the US many are ruled out of using stETH (LIDO) since I believe it would be a swap from ETH to stETH which would cause a tax event that you'd want to avoid. Curious to hear what you think is the best way to stake without having a taxable event?
Can you run your own server on AWS to stake? Or better to have it physically run in your custody?
good question covered in next post, but check your email for the answer!
Very relevant content for a free article, I'm waiting for the upcoming deep dives :)
I set up a Rocket Pool node about a month ago, I prefer to participate in the decentralization of the network even if it increases a bit the risks, and it makes me feel more involved in the ecosystem!
Glad to hear, independent staking is something long term ETH investors should do, a more decentralized network increases the long term value of ETH by removing censorship risk. If it becomes OFAChain then non-US transactions go to a competitor which is bad for value accrual through burning tx fees. Best case is ETH to remain a credibly neutral global settlement layer and people like you are needed!
Coming: $LSDETH diversified LSD 'basket' token w/automated harvesting of intrinsic/extrinsic yield. Insured against slashing. Dominant LSDs (Lido) capped, rebalance algos skewed -> smaller DVT networks (promoting decentralisation). Pledge/hedge-able -> for DAOs/retail/Tradfi
I don’t understand the risk/reward. Why would someone make 32+ ETH illiquid until when/if a complex software upgrade is performed, especially when the ~5% staking reward approximates the risk free interest rate on liquid US treasuries?
Looks like voluntarily taking on the risk for the developers in exchange for minimal upside whilst exposing oneself to losing the 32+ ETH with no recourse for recovery?
We're going to explain our thinking on this in the next paid post in the staking series, thanks for bringing it up.
No, I don't think so. They make it really simple to create a validator node. I think technically you send your coins to their contract, but you still hold the private key. And as long as the contract is safe, only you with your private key can withdraw your coins from the contract once unstaking is possible.
Was referring to a risk disclosure from Lido that ~13% of ETH backing the staked ETH is under DAO-managed keys. Theoretically if these are hacked stETH depegs to 0.87. Yes you can use your own keys when joining Lido now.
Apologies if this has been covered before, but how do staking risks through LSDs compare to staking through Ledger (or similar storage device). If staking through Ledger, its still your keys, your coins, right?
What do you guys think pf staking with services like allnodes? Still your keys, but they manage all the server stuff related to the node.
I've been quite happy with them over the past 2 years, and they are quite affordable
This is like AWS?
Hey guys, in the US many are ruled out of using stETH (LIDO) since I believe it would be a swap from ETH to stETH which would cause a tax event that you'd want to avoid. Curious to hear what you think is the best way to stake without having a taxable event?