Blockdaemon Blog

How Amdax & Blockdaemon Simplify Institutional ETH Staking

Case Study
Jan 18, 2023

Ethereum’s Proof-of-Stake (PoS) industry has grown rapidly over the past two years, with staking rewards driving strong levels of institutional participation. Despite the attraction that staking rewards offer, it has traditionally been extremely difficult for those interested to reliably participate in staking, and liquid staking.

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Clients face a significant opportunity cost by holding digital assets without a defined staking strategy.

By not staking, they are missing out on accumulating staking rewards.

Some of the barriers to staking include needing enterprise-grade custodianship, gold-standard security, full-time engineering resources, and more. All of these need to be executed at an expert level, or real staking rewards can be missed.

Amdax is proud to now offer fully compliant staking service for clients. Amdax became the first crypto service provider to be registered with the Dutch Central Bank. By investing through Amdax, you can be certain that you’re investing within the boundaries of current regulations.

That way, you’ll never be faced with any unpleasant surprises.In partnership with Blockdaemon, Amdax enables clients to benefit from ETH staking, and greater capital efficiencies, without the technical overheads. Amdax provides a white-glove, full custody Ethereum staking solution that takes care of the entire staking experience on a client’s behalf.

Amdax Staking Primer: What is Proof-of-Stake?

Ethereum’s Proof-of-Stake blockchain relies on an internal resource (‘stake’) rather than an external resource (energy, as with Bitcoin’s Proof-of-Work) to achieve network consensus. Consensus refers to how all parties come to agree on the state of the distributed blockchain (‘who owns what’), without a centralized party. Proof-of-Stake represents the next evolution of blockchain innovation. The success of Ethereum, the world’s second largest blockchain by market capitalization, and its transition to Proof-of-Stake is testament to this fact. It achieves the same security guarantees as Bitcoin at a fraction of the energy footprint. Today, thriving ecosystems, such as Ethereum, operate on Proof-of-Stake networks with negligible environmental impact. By decoupling from an external source of network security, Proof-of-Stake networks offer holders greater ‘skin-in-the-game’ incentives through staking. By staking, clients can get staking rewards.

Where Do Amdax’s ETH Staking Rewards Come From?

Staking rewards are issued by the Ethereum protocol to participants for contributing to the network’s security. Proof-of-Stake networks are decentralized. So, how does a Proof-of-Stake network remain secure and free from centralized control? Moreover, who decides what gets added to the blockchain? The answer to all of these lies in staking, the consensus mechanism that relies on holders to stake their digital assets.

Staking incentivizes participation in Ethereum’s Proof-of-Stake blockchain. It achieves this by aligning network security with individual incentives. Individuals who bundle transactions into blocks and add these to the blockchain receive staking rewards. These entities are known as validators.

Amdax’s validators, operated by Blockdaemon, generate staking rewards on behalf of clients who wish to participate in the Proof-of-Stake ecosystem, without needing technical expertise. This delivers a safe, fully compliant, and institutional-grade staking service. When clients stake  Ethereum with Amdax, they receive a receipt token to represent their staked ETH. By offering liquid staking, Amdax and Blockdaemon create the opportunity for positions smaller than 32 ETH to be staked, creating better accessibility and allowing clients to have greater capital efficiency.

Why Stake with Amdax Today?

Amdax can provide asset managers, financial institutions, and corporations with secure and compliant custody services for digital assets.

Blockdaemon fully integrates into Amdax’s industry-leading staking offerings, with high quality blockchain infrastructure. Blockdaemon helps Amdax’s clients maximize their staking rewards.

Industry-Leading Security & Compliance

Both Amdax & Blockdaemon adhere to the strictest security standards. This includes world-class crypto key management, 100% slashing insurance, and much more.

Standard & Liquid Staking Support

Receive rewards across Ethereum’s innovative Proof-of-Stake blockchain. By staking on Ethereum with Amdax, clients have seamless access to staking rewards and other innovative solutions for capital efficiency.

Trusted Custodianship

Amdax always retains full control over their client’s funds and stores the client’s funds in a full reserve way, ensuring the same best-in-class assurance that their clients rely on for their custody. As a non-custodial entity, Blockdaemon never holds digital assets on behalf of a custodian.  

Easy & Fast Staking Integration

Both Amdax & Blockdaemon offer a simple and rapid integration to start receiving staking rewards as soon as possible. To begin, create a custody account with Amdax and follow the necessary steps. Allow Amdax & Blockdaemon to accelerate your staking speed-to-market.

Get Staking Rewards with Amdax & Blockdaemon Today

Staking has emerged as a permissionless, decentralized, reward generating heartbeat of Ethereum’s Proof-of-Stake blockchain. This new paradigm offers exciting opportunities to receive staking rewards. Amdax’s fully custodied, compliant Proof-of-Stake solution allows clients to benefit from staking, without the risks or overheads associated with blockchains. Furthermore, Amdax allows clients to compound liquid staking rewards.

By leveraging Blockdaemon’s high-assurance infrastructure, Amdax gives clients access to a reliable and seamless staking experience. By staking through Amdax, clients can enjoy a convenient way of getting staking rewards without researching suitable validators or self-staking. Clients do not have to manage their own wallet software either.

Amdax radically reduces the barrier to entry for institutional staking. Interested? Start today.

Disclaimer: The information contained on this Website and the resources available to download are intended to be used for information purposes only. Nothing contained on our Website constitutes a solicitation, recommendation, endorsement, or offer by Amdax, Blockdaemon or any third party service provider. The services mentioned may not be available in your location or in any other jurisdiction in which such solicitation or offer would be unlawful under the laws of such jurisdiction. Before making any investment decisions, it is important for you to do your own analysis as well as take independent financial advice from a professional taking into consideration your own specific needs and circumstances.

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