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Blockdaemon explores how to maximize your Ethereum staking potential post-Shapella
The Shapella hard fork has ushered in a new era for Ethereum, enabling the withdrawal of staked assets and rewards and opening up exciting opportunities for institutional ETH holders.
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As Ethereum's ecosystem continues to grow and evolve, it's crucial for sophisticated investors to capitalize on these new possibilities, and Blockdaemon is here to help you do just that.
In this blog post, we'll explore the top three reasons for institutions to stake ETH post-Shapella and highlight how Blockdaemon can significantly enhance your staking experience, providing security, flexibility, liquidity, and convenience like never before.
Join us as we delve into the compelling advantages of staking ETH in this dynamic new landscape and discover how you can unlock your institution's full staking potential.
Post-Shapella, staked Ethereum is now withdrawable, opening up new opportunities for institutional stakers to maximize their rewards and contribute to the network's security.
Staking ETH post-Shapella offers several powerful advantages:
a. Visibility into withdrawal timelines: Stakers are now able to withdraw their staked assets natively, providing stakers with more confidence when deciding to enter into a staked position. While withdrawal timelines can vary at any given time, ETH validator activations currently far outstrip withdrawals, with over ~80,000 validators in the activation queue. This visibility into withdrawal timelines is also expected to attract more institutional stakers who have not previously staked their ETH due to the lack of liquidity.
b. Enter Activation Queue: Currently, the time to activate your ETH validator stands at almost 40 days. By choosing to stake Ethereum now, you can enter into this queue to be ready for your validator’s activation to begin securing staking rewards.
c. Support the network: Institutional stakers can support the network's security and overall health while benefiting from the rewards of staking ETH. This aligns the interests of institutions with those of the broader Ethereum community as increased participation contributes to a more robust and secure network, benefiting all stakeholders and fostering long-term growth and stability.
Ethereum's transition to Proof-of-Stake and ongoing upgrades, such as Shapella, signal a strong commitment to sustainability and long-term growth, making it an attractive blockchain for environmentally conscious institutions.
Liquid staking solutions offer instant access to Ethereum liquidity without the need to unstake your ETH, providing flexibility and convenience for institutional stakers.
Liquid staking protocols provide tokenized receipts of staked ETH, allowing users to trade, stake, and utilize their staked assets without having to unbond their ETH.
Embracing liquid staking post-Shapella presents a compelling case for institutions:
1. Instant liquidity: Allows institutions to efficiently manage their capital and quickly respond to market opportunities or liquidity needs, without having to go through the unbonding process. The availability of instant liquidity is particularly attractive to asset managers, crypto platforms, or any institution that faces operational burdens associated with redemption schedules or the need for simplified UX.
2. Leverage staked assets: Receipt tokens issued by liquid staking products enable users to utilize their staked assets as collateral, further enhancing capital efficiency.
In conclusion, staking ETH post-Shapella offers an improved opportunity for institutional investors to benefit from continued access to staking rewards, capitalize on the increasing popularity of liquid staking, and actively participate in Ethereum's ongoing growth and evolution.
By benefiting from a trusted staking solution like Blockdaemon, institutions can enjoy a seamless staking experience, bolstered by expert support and cutting-edge security & compliance infrastructure.
Now is the time to act and secure a position at the forefront of Ethereum's future. Don't miss out on the opportunity to contribute to the network's security, decentralization, and long-term growth.
Get started with Blockdaemon and secure ETH rewards in a post-Shapella world.
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