What is Staking?

Last update - December 5, 2023

Staking is the process of locking up your tokens to support network operations such as transaction validation and block production. In Ethereum’s case, staking is crucial to secure the network and enable its Proof-of-Stake (PoS) consensus mechanism.

Your staked ETH earns rewards, creating a passive income stream. We consider it as the lowest-risk crypto investment on Ethereum because if staking fails, it implies a significant issue with the entire Ethereum ecosystem.

If we were to draw parallels with traditional finance, staking ETH is akin to investing in the 30-year U.S. Treasury Bill.

Related FAQ

Getting Started

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Stake+

How can I verify the cost of the staking transaction to compare it with the ETH gas fee? Is the yield from Lido the same as what I’d get directly with them? Is there a locking period? Is there a minimum investment? Is Braavos the Best Wallet for Staking on Starknet? Why should I use this solution instead of directly staking on Ethereum? Is my ETH safe with Stake+? How does Stake+ make staking more accessible? How do I stake my ETH via the Stake+ protocol? What is Staking Boost? What are the risks associated with staking? How can I monitor my investments? How long does the staking process take?