Ethereum Staking
With Ethereum staking, you can generate additional returns on your Ether, with yields of up to 3.5% per year. At Amdax, Ethereum staking is available to everyone with no minimum deposit. We handle all technical challenges and always stake your Ether securely from our vault, with no counterparty risk.
What is Ethereum staking?
Ethereum staking is the process of locking up your Ethereum tokens (Ether) on the Ethereum network. By locking up your ether, you contribute to the decentralization and security of the Ethereum network. As a reward, you receive compensation paid out in Ether.
Transactions on the Ethereum blockchain are validated by all participants in the Ethereum network, known as validators. To become a validator, you must stake a minimum of 32 ether. This is called staking and is comparable to a security deposit. When you stop staking, you get your deposit back.
Setting up your own validator requires a serious time investment and technical knowledge. Also, the minimum stake of 32 ether is a barrier for many. At Amdax, we handle all technical aspects of setting up a validator and offer the benefits of Ethereum staking with no minimum deposit. Your ether are always securely staked from your own vault at Amdax.
Why Ethereum Staking?
Passive income on your ETH tokens
Earn rewards for staking your ether. Gain additional returns on top of potential ether price increases without needing to take action. Staking rewards are automatically credited and reinvested to generate compounding rewards.
Always from a secure vault
Your staked Ether remains locked in your account. It is securely staked from our vault, yielding a reward of 2% to 3.5% annually.
Contribute to the security and decentralization of the network
By staking your Ether, you join other participants as a validator on the Ethereum network, helping validate transactions, secure the network, and add new blocks to the blockchain. More validators make the network more decentralized.
How Does Ethereum Staking work at Amdax?
Ethereum Staking at Amdax is available to all ether holders without a minimum deposit. To facilitate this, Amdax collaborates with Kiln, a reputable provider of professional staking services.
We operate dedicated validators pooling clients’ ether. This is done through staking pools, which gather ether from various holders. Think of it as a collective basket with 32 ether. From this pool, we establish a validator. The staking pool is managed by Amdax, so there is no counterparty risk. By using staking pools, Amdax makes Ethereum Staking accessible to everyone, without a minimum deposit.
Staked ether is not tradable. The unstaking period depends on the Ethereum protocol’s queue at that time. There are no exit fees when unstaking your ether.
Put your ether to work
Ready to make your Ether work for you? Stake your ether with Amdax today and start earning staking rewards immediately.
Product specifications
Product
Minimum investment
Returns*
Unbonding period
Ethereum Staking
> 0 ETH
2 tot 3,5% per year*
7-28 days
*Yield rates are indicative and subject to periodic adjustment. Amdax retains a 25% commission on all staking rewards. Stated yields are net returns after commission. **Ether is staked securely from our vault and remains in custody with Amdax during staking, incurring a storage fee of 0.6% annually.
FAQ
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Activating Ethereum Staking can be done easily via the web environment or Amdax app.
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Staking rewards can be found in the balance overview in the web environment or Amdax app. Staking rewards are distributed weekly on every Tuesday.
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The duration of the queue for unstaking ETH varies between 7-28 days and depends on the total amount of ether being unstaked on the network. Check the current queue at Validator Queue.
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Amdax offers one of the most secure crypto custody services in the Netherlands. For providing Ethereum Staking, we collaborate with staking partner Kiln, a reliable institutional entity. Your ETH tokens remain in Amdax's vault and are not lent out. This way, we offer Ethereum Staking without counterparty risks.
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For liquidity considerations, Amdax always keeps at least 32 ether out of staking. This means that not all ETH tokens are locked in staking. This prevents unnecessarily breaking up a validator with 32 ETH tokens when an incoming customer requests to unstake a certain amount of ether.
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With Ethereum Liquid Staking, you receive a liquid token equivalent to the amount of ETH tokens you stake, which is also tradable itself. This liquid token is issued by a third party to facilitate liquid staking. When unstaking your ETH tokens, you exchange the received liquid token back for your ETH tokens. You often receive slightly less than a 1 to 1 ratio.
With Ethereum Staking, the ETH tokens are collected by Amdax in a staking pool, securely managed by Amdax and without counterparty risk that arises from issuing, receiving, and holding a liquid token. There are no exit fees when unstaking your locked ethereum.
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Slashing is a mechanism to penalize validators who misbehave or do not function correctly. For example, if a validator approves a fraudulent transaction or is not available to validate transactions because the validator is offline. As a penalty, a portion of the staked tokens is confiscated or destroyed. Thanks to the collaboration with Kiln, Amdax offers >99.99% uptime and insurance coverage against the risk of slashing.
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