2024-10-23 19:28:36Ethereum Proof of Stake (PoS) is a consensus mechanism that determines who validates the next block, according to how many Ethereum tokens they hold and are willing to 'stake' as collateral. To become a validator in the Ethereum network, one is required to stake a minimum of 32 ETH. However, this process involves not only a substantial financial commitment but also requires robust hardware equipment and additional assets to cover node operation costs. There are also inherent risks involved, such as slashing and liquidity risks associated with unstaking queues.
Recognizing these challenges, Bybit introduced its ETH 2.0 liquid staking service. This innovative solution simplifies the staking process by allowing users to participate with as little as 0.1 ETH. With Bybit handling the minting process, users are spared from dealing with on-chain activities and gas fees, making Ethereum staking more accessible to broader traders.
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Benefits of ETH2.0 Liquid Staking
Liquid staking protocols have significantly contributed to the widespread adoption of Ethereum staking by providing a more adaptable and accessible alternative to traditional methods. Here are the primary advantages:
Enhanced Liquidity: Liquid staking preserves the liquidity of assets, enabling users to trade or participate in DeFi activities without locking up their funds.
Accessibility and Reduced Entry Barriers: Liquid staking allows users with less than (the minimum required) 32 ETH to join staking, encouraging broader network participation.
Flexibility and Convenience: Liquid staking offers a convenient method to earn rewards without the complexities of managing validator nodes.
Diversification of Earnings: Liquid staking tokens empower users to diversify their earnings by engaging in various DeFi strategies.
How Bybit ETH 2.0 Liquid Staking Works
Bybit ETH 2.0 Liquid Staking now supports Liquid Staking from two (2) different Protocols: Lido Finance and Mantle LSP.
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Stake ETH for stETH |
Stake ETH for mETH |
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Protocol |
Lido Finance: Lido Finance is a decentralized protocol on Ethereum that enables users to stake their ETH assets and earn rewards while receiving stETH tokens representing their staked ETH, providing liquidity and flexibility. |
Mantle LSP: Mantle Liquid Staking Protocol (LSP) is a permissionless, non-custodial ETH liquid staking protocol deployed on Ethereum L1 and governed by Mantle. Mantle Staked Ether (mETH ) serves as the value-accumulating receipt token. |
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Staking ETH |
When you stake ETH, our system automatically mints it into stETH at a 1:1 ratio. This stETH is then credited to your Funding Account. |
When you stake ETH, our system automatically mints it into mETH according to the exchange rate. This mETH is then credited to your Funding Account.
The actual amount of mETH received may be slightly different from the est. amount, due to factors such as the mETH exchange rate adjusting or fluctuations in on-chain staking amounts. |
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Staking Processing Time |
15-30 minutes | |
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What can I do with the Liquid Token received |
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Earning Rewards |
Hourly snapshots of your Spot, Funding, and Unified Trading Accounts (if upgraded) will be taken between 12AM (midnight) UTC and 11:59PM UTC. The effective stETH amount is determined as the minimum amount recorded in all hourly snapshots.
Please note that while ETH 2.0 Liquid Staking is not supported on subaccounts, the stETH amount held in your subaccounts will be included in the hourly snapshots. |
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Redeeming Liquid Token |
You can redeem stETH back to ETH whenever you want. The system mints your stETH back into ETH at a 1:1 ratio. The ETH will be credited to your Funding Account after it has been successfully processed.
Please note that once you've submitted a redemption request, you will no longer receive rewards for the corresponding amount of stETH. |
You can redeem mETH back to ETH whenever you want. The system mints your mETH back into ETH according to the exchange rate. The ETH will be credited to your Funding Account after it has been successfully processed.
The actual amount of mETH received may be slightly different from the est. amount, due to factors such as the mETH Exchange rate adjusting or fluctuations in on-chain staking amounts. |
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Redemption Processing Time |
5 - 7 working days
The estimated distribution date is based on the withdrawal queue on Lido and may be subject to delays if there are changes in the estimated withdrawal date.
You can find your latest Est. Distribution Date through the ETH 2.0 Orders page. |
1 - 10 working days
The estimated distribution date depends on Mantle's processing speed and on-chain queuing & security and may be subject to delays if there are changes in the estimated unstake date.
You can find your latest Est. Distribution Date through the ETH 2.0 Orders page. |
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Relevant Documentation | ||
To learn more about ETH 2.0 Liquid Staking, please refer to the following articles:
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