Staking - Ethereum (ETH)
Introduction
- On-chain staking utilizes the Proof-of-Stake protocol of applicable blockchain to generate rewards through a process typically called “staking”.
- Benefits of staking on MAX versus staking on other platforms:
1. ✓ Payouts once a week*
2. ✓ Generate predictable yield with crypto
3. ✓ Stake your crypto with a few taps from your MAX app
Staking protocol
- ETH 2.0 is the latest version of Ethereum, designed to address scalability, efficiency, and sustainability. Ethereum has completed the upgrades of Beacon Chain and the Merge. The consensus mechanism has switched to Proof of Stake from Proof of Work, dramatically reducing the energy spent on securing the blockchain. Ethereum is looking to include Sharding in its upcoming upgrades.
- MAX employs more than one way to stake your ETH:
- Stake directly on the blockchain as a validator to help secure the network.
- Stake indirectly through third-party services. - As of Sept. 22nd, 2023, the total value staked on Ethereum is around US$41 billion with a staking ratio of 21.3%, ranked the 1st in terms of staking market cap.
Yield
- Generated from PoS activities.
- The expected annualized return is specified on the staking page in MAX App.
- Yield is paid once a week on Mondays.
Risk
- Assets are subject to losses if the private key of the validator is compromised.
- Rewards could be less than expected if the blockchain protocol contains design defects.
Fee
We collect 15% of the yield generated for our users. Users are eligible for a zero staking fee if opting to be paid in MAX Token.
Processing Time
- *Staking/Unstaking processing time: Please refer to the app for the most up-to-date waiting time.
