Staking basics

ETHx Designed for Decentralisation

Shivendra Singh

Apr 14, 2023 • 4 min read

What is the Ethereum Network?

The Ethereum network is a decentralized open-source blockchain system that features its own cryptocurrency, Ether. ETH works as a platform for numerous other cryptocurrencies, as well as for the execution of decentralized smart contracts.

Ethereum Network is a decentralized blockchain network that permits safe, secure, and transparent transactions between different parties. Ethereum Network has grown to be one of the most popular blockchain platforms in the world. Ethereum Network was brought as a stable, scalable, and safe platform for dApps. The network supports a variety of dApps including DeFi, DEXs, and NFTs included. The network has more recently switched to a more energy-efficient and secure Proof-of-Stake (PoS) consensus mechanism in 2022 to verify the transactions and add new blocks to the blockchain.

Also Read: What Is A Private Key

Advantages of the Ethereum Network

Scalability: The Ethereum network is made keeping in mind the scalability. Ethereum Network can easily handle large amounts of transactions in a small amount of time.

Large User Base: The Ethereum network has a big active community of developers and users. This large user base helps in improving the network and also helps in developing various new applications on the network.

Security: The Ethereum network is designed to be secure, using a number of security features, such as proof-of-work consensus and smart contracts. This makes it a good choice for applications that require a high level of security, such as financial applications.

Interoperability: The Ethereum network is designed to be interoperable with other blockchain networks, meaning that it can communicate and exchange data with other networks. This makes it a good choice for applications that need to interact with other blockchain-based systems.

These advantages have made the Ethereum network a popular choice for a wide range of applications, including decentralized finance (DeFi), decentralized applications (dApps), and non-fungible tokens (NFTs).

Also Read: Proof Of Stake

Introduction to ETHx as a decentralized solution

ETHx is a Liquid Staking Token (LST) by Stader that aims at scaling the participation to DeFi Protocols and Ethereum-based activities in the Ethereum Network. The amount of ETHx the user will get will be equal to the amount of ETH they will exchange i.e. 1 ETHx token equals 1 ETH token.

ETHx allows the stakes to liquid-stake their ETH and earn staking rewards without having to lock up their tokens. ETHx can be used in Stader’s Liquid Staking platform to pay their gas fees, governance fees, and other platform fees while also being able to participate in DeFi activities.

Also Read: Blockchain and Web3

Ethx & its features

Some of the key features of ETHx are as follow:

Built for rewards: ETHx is designed to maximize rewards for stakers. The platform offers a variety of staking options, including single-chain staking, multi-chain staking, and liquidity staking. ETHx also partners with top validators to ensure that stakers receive the highest possible rewards.
Distributed & Scalable: ETHx is a distributed platform that can scale to meet the needs of users. The platform uses a multipool architecture that allows it to scale up smoothly as more users join. ETHx also uses a decentralized governance model, which gives users a say in how the platform is operated.
Secure: ETHx is a secure platform that has been audited by top security firms. The platform uses a variety of security measures to protect user funds, including smart contract audits, and multi-factor authentication.

Also Read: Cex Vs Dex

Benefits of ETHx

Some of the most lucrative advantages you can have on ETHx are:

Competitive staking rewards: You can earn the great staking rewards which include the MEV (Maximal extractable value) rewards
DeFi Opportunities: You can use your ETHx to trade or lend while still earning staking rewards on your ETHx
Built for rewards: You can take advantage of our multi-chain partnership expertise to maximize and get the best-in-class rewards on your stakes.
Distributed & scalable: With ETH scalability across a variety of Stakers including the home stakers & high-performance professional operators you can find healthy
Safe and Secure: ETHx is audited with top security firms including Sigma Prime and Halborn so you can expect the top class safety and security on our platform.

Also Read: Smart Contracts

Risks and Considerations of ETHx:

Even though ETHx is built on a highly safe and secure network, there are still some risks and regulations we should take into consideration including:

Market risks: The price of ETH can be volatile and can fluctuate significantly. So, if the value of ETH falls, it could result in a loss of value for users who have staked their ETH for ETHx on the platform.

Regulatory risks: The cryptocurrency industry is still in its early stages and is subject to a high degree of regulatory uncertainty. There could be some regulations or rules from the government authorities which can potentially lead to a loss of value for ETH.

Also Read: ERC-4337

Conclusion

ETHx is a great liquid staking token designed to get the rewards you deserve while also securing the Ethereum Network. However, just like any investment, we should always be vary of ETHx's pros and cons so we can make informed decisions keeping in mind your investment strategy.

Frequently Asked Questions:

Q) What is the value of ETHx?

Ans) ETHx is a Liquid Staking Token (LST) by Stader which you get in return of staking your ETH token on the platform. So, the value of an ETHx token equals the value of an ETH token.

Q) What are the benefits of Ethereum liquid staking?

Ans) There are several benefits to using Ethereum liquid staking, including:

Liquidity: Users can access their ETH tokens at any time, without having to wait for the unbonding period to expire.
Earn rewards: Users can earn staking rewards while still having access to their ETH tokens.
Participate in DeFi: LST can be used to participate in DeFi, such as lending and borrowing

Q) Is ETHx the right choice for me?

Ans) Whether or not ETHx is right for you depends on your individual circumstances and risk tolerance. If you are looking for a way to earn staking rewards while still having access to your ETH tokens, then ETHx may be a good option for you.