Announced in February, Coinbase finally allows certain users to place their Ether (ETH) in the Ethereum 2.0 deposit agreement. Customers will earn rewards of up to 6% annualized interest.
ETH 2.0 staking on Coinbase
Two months after opening its Ether Staking (ETH) waitlist, cryptocurrency exchange Coinbase announces that some of its customers can now stake their ETH as part of Ethereum 2.0.
Customers can earn up to 6% in the form of annualized interest. In other words, if you deposit 100 ETH you can earn an additional 6 ETH after one year. Coinbase took a 25% commission, which means that the net performance for users will be lower than previously announced.
In theory, the ETHs at stake will remain blocked and cannot be withdrawn until the launch of phase 1.5 of Ethereum 2.0, ie until 2022. However, Coinbase plans to offer flexible staking “in the coming months. »Or the user will be able to engage in trading with his funds in staking.
Coinbase users can already staking other tokens such as Algorand (ALGO), Cosmos (ATOM), and Tezos (XTZ) and the DAI stablecoin.
Evolution of the number of ETH staking for Ethereum 2.0 – Source: Dune Analytics
The number of validators securing the network increased during the first quarter of 2021. There are around 118,000 validators currently active.
Thus, the more ETH there is in staking, the more decentralized and secure the network will be. As a reminder, the Ethereum 2.0 deposit agreement serves as a bridge between the current Proof-of-Work (PoW) process and the new Proof-of-Stake (PoS) consensus. This new consensus mechanism will allow many more transactions to be processed while reducing transaction costs.