The Easiest Way To Stake ETH by Using StaFi Platform
rETH Solution Overview
The illiquidity of staked ETH may deter user participation and calls for an immediate solution. As a project dedicated to addressing the liquidity issue of staked assets, Stafi team hereby propose the rETH solution, which allows for Ethereum 2.0 liquid staking at ease.
What Is ETH (Ethereum)
Ethereum was created by a young man named Vitalik Buterin in 2013. It is known that Vitalik at that time was 19 years old. Like most blockchains, Ethereum has its own cryptocurrency called ether (ETH). ETH is digital money. If you’ve heard of Bitcoin, ETH has many of the same features.
So, Ethereum or ether is a blockchain or public peer-to-peer network that was inaugurated in 2015. The existence of this network allows developers to produce an application.
In this way, ethereum has also become a decentralized software platform. This is certainly different from the bitcoin currency which is only designed as a currency.
Ethereum has two mechanisms namely POS and POW
Proof-of-work (PoW)
Proof-of-work is the mechanism that allows the decentralized Ethereum network to come to consensus, or agree on things like account balances and the order of transactions. This prevents users from “double spending” their coins and ensures that the Ethereum chain is extremely difficult to attack or manipulate.
ETH change from POW to POS
Currently Ethereum 1.0, like other cryptocurrencies, uses a consensus mechanism known as Proof of Work (PoW), while Ethereum 2.0 will later use a Proof of Stake (PoS) mechanism.
Simply put, POW is more of a mining process where we need mining tools. Like VGA hardware that is made into a RIG or buying a mining machine and it costs quite a bit.
While POS is arguably more efficient because all we need is an ETH balance and a staking place can be via a website that provides staking or using software and the advantage is that we don’t need to set up hash algorithms like POW which must be set in advance according to the performance of the machine
How to stake ETH
you can say it’s easy to understand because there is already a tutorial
For how to Staking, we can see here > https://ethereum.org/en/eth2/staking/
And for the conditions
You’ll need 32 ETH to become a full validator or some ETH to join a staking pool. You’ll also need to run an ‘Eth1’ or Mainnet client. The launchpad will walk you through the process and hardware requirements. Alternatively, you can use a backend API.
How interesting is not this POS system
But this doesn’t provide much of a solution for the Ehereum community or people who want to stake ETH, because there are 2 options
The first one must have a minimum of 32 eth, and the second join the pool or join other people
The minuses are quite a lot, I can say, it’s the same, like POW, the same person who has a large capital will benefit, if you want to join the pool, there must be an additional fee and the main thing is that you have to be trusted.
And is there an alternative? the answer is there for now we can staking ETH without having to have 32 eth one of which is in the StaFi APP from the StaFi Protocol
Why do I recommend StaFi APP even though in other places there are or now exchanges can also exchange ETH, the answer is quite short
Because StaFi Protocol makes a system that for me is very profitable
Namely the unlocking system, we are free staking without being locked for several months. So Staking 1 ETH today can be taken the next day if you want to take it
In addition to the above advantages, the StaFi Protocol also provides explanations and solutions that are quite interesting, the reason why rETH was made for the ETH Staking solution.
As with other staking things, there must be a validator and staker Namanya
Now I focus more on “Solving the Liquidity Dilemma for Both Stakers and Validators”
Well here StaFi Protocol really understands the dilemma of staking, including in terms of Liquidity, so what are the points?
• For a specific staker, whenever he stakes ETH to the SC, she will automatically receive a certain amount of rETH Tokens (ERC20 version) in return, which is a synthetic representation of her staked ETH balance and corresponding staking rewards. The rETH token may then be traded on a variety of trading venues, and can be used in other DeFi protocols.
• For validators, StaFi will initiate a Liquidity Program, through which they could also sell part of their ETH staked in the SC back to StaFi. Relevant details are specified in the Original Validator portion..
The 2 points above really explain the dilemma in terms of Staking and Liquidty and I think this is a good solution
In addition, here StaFi Protocol also shows an rETH formula, when is the lag of staking fish given the formula without asking here and there? Personally I’m still not an expert in formulas but quite understand what is meant, maybe this is very useful for those of you who like Staking, especially ETH staking
Apart from providing solutions and calculations here we can also know Technology Architecture
As someone who is a little familiar with Diagrams and Sequences for me this is very interesting.
To be honest, recently I saw a Crypto project that didn’t just mention the technology but StaFi Protocol surprised me because for me this is the most important thing for us to know, namely The flow of the technological process can be said to be very transparent
StaFi will deploy SC on the Ethereum 1.0 chain, and interact with the Ethereum 2.0 Staking Deposit Contract. Meanwhile, StaFi will also monitor the staking information of the Ethereum 2.0 Beacon Chain. The specific workflow is detailed in the diagram below
In this picture the book isa see how this rETH system works And this is the explanation I took from the StaFi Protocol rETH documentation
In short, this diagram was made to make us assess and read the movement of each process so we don’t just guess or guess
For more details, we can see here >> https://docs.stafi.io/rtoken-app/reth-solution
In Terms Of ETH Staking Security On StaFi APP?
of course the things that are mandatory in addition to making things that I have explained above, surely Security must be prioritized first, personally for security
You could say it’s pretty good for now, because I’m sure the protocol staff will continue to update the security level on their system, the security system is decentralized: yes, every process always has confirmation
And many more you can see here rETH documentation
https://docs.stafi.io/rtoken-app/reth-solution
because in this article I focus more on discussing alternatives to Staking ETH and StaFi APP as alternative containers and the advantages of the rETH system, which for me StaFi Protocol is very clear in explaining each program or system they develop, such as formulas, the technology is all explained