Tutorial: How to Stake on Ethereum 2.0 using Ankr

Ethereum 2.0 genesis date is set for Dec 01, however one important process needs to be completed before it can actually do so. The deployed deposit contract needs to amass enough ETH, so the network can go live. Now, the rewards are high to motivate people to contribute the total required amount of 524,288 ETH, as high as 21.6% to reward early birds! But there's a catch.

Dennis Weidner

Dennis Weidner

November 15, 2020 1:00 PM

Tutorial: How to Stake on Ethereum 2.0 using Ankr

The Ethereum 2.0 genesis date is set for Dec 01. However, one important process needs to be completed before it is launched. The deployed deposit contract needs to amass at least 524,288 ETH for the network to go live. The rewards are high enough to motivate people to contribute to staking, as high as 21.6% for early birds! But there’s a catch…

Staking on ETH 2.0 has many barriers:

  • The minimum amount required to stake is 32 ETH (around $14,500)
  • The node needs to stay online and “behave” as intended
  • If the node goes offline or “misbehaves” the staked ETH is slashed which could lead to a total loss of the deposited Ether
  • Staked ETH will be non transferable for a long time, until phases 1 and 2 of ETH 2.0 are rolled out

All of these factors can make participation difficult for the common users. Fortunately, Ankr blockchain project has launched Stkr, which makes the staking process easier for less technically knowledgeable users who still want to benefit from the high rewards.

Meet Ankr Stkr Platform

Ankr launched Stkr platform shortly after the Ethereum 2.0 launch announcement, to provide a comprehensive and well designed platform to mitigate the pain points of participation in the new network. It features staking facility with as little as 0.5 ETH, automatic selection and switching to node operators, one click process and usage of a liquid aETH token bypassing ETH 2.0 Phase 0 limitations.

Stkr takes care of the complex process by assigning tasks to different entities. There are three in fact. First the people providing the funds. Second the node operators bringing technical expertise and staking infrastructure, either their own or through Ankr platform. Third, the governors managing the platform by staking Ankr and providing insurance also. The ETH rewards are distributed amongst three, though the fund providers still take the majority of it.

To start simply, visit the official website and click Launch app on the top right corner of the screen. It will display three ways to connect wallet. MetaMask, Trust Wallet and WalletConnect. Once it’s done, the platform will display connected wallet address and ETH / Ankr amount.

Next, click Start Staking and then choose Stake More option to select the amount of ETH to deposit to the platform. You can choose from 0.5-1000 ETH and the system will automatically manage them by one or multiple staking node operators. The equivalent amount of aETH will be credited to your address, to bring liquidity to the otherwise non transferable ETH.

Stkr displays the estimated annualized rewards and the warning stating that it’s possible to remove the deposited ETH from the platform, because the new network doesn’t allow transfers and won’t for quite some time. Now, ticking the check box and clicking Stake will bring users to authenticate the transaction from their wallets. The process is complete from the user’s end and Stkr will take care of the rest.

Stkr is redefining Ethereum 2.0 staking by simplifying the entire process for the end user and creating an entire eco-system Eth2 staking, so that different participants with different expertise can come together to work for mutual benefit. It’s reducing a complex process to a couple of clicks and will likely became more popular in the future.

Dennis Weidner
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Dennis Weidner

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