What is StakeHound Staked Ether (STETH) | What is StakeHound Staked Ether token | What is STETH token
What is stETH?
Due to the introduction of Ethereum 2.0, the concept of proof-of-stake (PoS) is taking the world by storm. While this concept promises many benefits, it also comes with some drawbacks.
Fortunately, alternative platforms offer liquid stakings, such as StakeHound, that allow you to stake and wrap your tokens into stETH without a minimum required amount and lock-up period.
But what exactly is stETH, and how can you benefit from it? Essentially, stETH is a wrapped token offered by StakeHound that allows users to wrap their assets as a 1:1 peg with the underlying asset. This permits users to participate in DeFi while still receiving staking rewards.
What is stETH?
The launch of ETH 2.0 allows users to stake their tokens and receive passive income, which is attractive for those who have at least 32 ETH lying around and don’t mind sacrificing the liquidity of their assets for two years due to a lock-up. However, most everyday users want full control over their assets and prefer to stay as liquid as possible. This is where StakeHound comes in. To enjoy liquid staking, users can wrap their ETH into stETH with StakeHound.
stETH is a wrapped token with a 1:1 representation of the user’s underlying ETH. After a user onboards their ETH, StakeHound stakes those ETH for the users and redistributes the rewards to stETH. That way, the stETH allows you to receive ETH 2.0 staking rewards without the minimum staking requirement and no lock-up period as stETH can be sold at any time, for example, on Uniswap.
As an additional incentive, users will also receive our governance token HOUND as a bonus.
**StakeHound and Wrapping **
Decentralized finance (DeFi) provides financial services and products by utilizing smart contracts on the blockchain without relying on any central entity. Until now, DeFi applications are mostly built on the Ethereum network. To participate in this network, users must own ERC-20 tokens. If you don’t own them, wrapping non-ERC-20 tokens can help you create a compatible token specific to comply with the network’s architecture. StakeHound can help you with this.
StakeHounds’s goal is to bridge the worlds of staking and DeFi together. To achieve this goal, Stakehound wraps users’ non-ERC-20 tokens, storing them with our custody partners Copper.io and Fireblocks and then issuing stETH back to the users.
Staking rewards earned are distributed to users’ accounts, allowing them to earn passive income still and increase their balance. Issued stETH follows the ERC20 standard, which means that users can freely transfer, trade, and use them in DeFi platforms, unlocking liquidity previously locked up in staking.
Through stETH, users can now have the freedom to use their staked tokens, participate in DeFi, collateralize their assets, or exchange it with other tokens. All of those advantages allow users to earn staking rewards without experiencing the lock-up period. Users can now withdraw their staked tokens whenever they want.
How to Profit from ETH 2.0 Staking Rewards?
The launch of Ethereum 2.0 has created a new hype around staking in the Blockchain ecosystem. Users were invited to become validators and were offered the opportunity to lock-in their ETH in return for passive staking rewards from 4.9% up to 21.6%. However, not all users can stake on the ETH 2.0 launchpad as it requires a minimum threshold amount of 32 ETH (currently valued over US $19,500+). Not only that, but the launchpad will also lock users’ ETH for a minimum of 18 months, rendering their ETH liquid for other opportunities such as DeFi or yield farming.
Suppose a user does not meet the minimum requirements of staking with the ETH 2.0 launchpad but still wishes to participate in staking to earn passive rewards. In that case, they can consider staking with alternative platforms such as StakeHound. StakeHound offers all ETH holders the opportunity to earn passive staking rewards by removing the ETH 2.0 launchpad’s entry barriers, such as the minimum 32 ETH threshold or the 18-month lock-up duration. Eliminating such barriers may lead to a mass-adoption of staking.
ETH Moving to Proof-of-Stake
The launch of ETH 2.0 marks the beginning of the new Ethereum network that utilizes the Proof-of-Stake (PoS) consensus mechanism, shifting away from the existing Proof-of-Work (PoW).
The use of this new consensus algorithm is touted to be several times more efficient, scalable, and secure than the current Ethereum infrastructure. Not only that, but PoS promises stake rewards to users who will stake with ETH 2.0. So what staking rewards will users receive if they stake with ETH 2.0?
ETH 2.0 Rewards
When users choose to stake with ETH 2.0, they can earn rewards up to 22.5% APY on their ETH. This is a high annual rate, especially for a passive staking income. But as more users stake with ETH 2.0, the lower the estimated annual percentage return (APY) becomes. To enjoy these staking rewards, users are required to lock-in a minimum amount of 32 ETH for what is expected to be 18-24 months, thus making users’ ETH illiquid and participation in other opportunities, such as DeFi or yield farming impossible.
Users are also expected to run a validator node when they stake with ETH 2.0. If users are unable to perform their duties as a validator, they are faced with the prospect of their rewards being slashed. Fortunately, there’s an alternative solution for stakers to reap still the staking rewards while having liquidity for their assets.
StakeHound Rewards
StakeHound is an alternative staking platform that allows users to stake with ETH 2.0 and, at the same time, maintain access to liquidity. StakeHound issues users wrapped token or stETH upon ETH deposit backed 1:1 with the underlying staking ETH. With liquid staking, users can stake their ETH and receive stETH in return. As users have full control over their stETH, users don’t have to worry about lock-ups.
The staking rewards received will be distributed directly into users’ accounts. stETH complies with the universal ERC-20 standard, allowing for easy integration into DeFi protocols, wallets, and exchanges.
Apart from stETH, Stakehound also issues the HOUND token, the platform’s governance token, and the fuel that ignites the liquid staking ecosystem. HOUND is set to go live in Q1 2021. The platform also incentivizes everyone to become a liquidity provider by creating a sustainable, community-driven ecosystem.
StakeHound Bonus Program
Early adopters and liquidity providers will get HOUND tokens from various yield farming and early adopter programs. We call it the hunt. This program allows early adopters to participate in StakeHound’s staking program and enables users to maximize their rewards. Every time StakeHound is launching a new coin, users can participate in a new hunt and multiply their HOUND rewards up to a 1.7 multiplier.
- Hound Fan (1 x Bonus): Users will need to acquire stETH before Q1 of 2021 directly on StakeHound to become a Hound fan. The rewards will be proportional to the percentage of their total stETh purchase. More details about this will be available soon.
- Hound Master (+0.2 Bonus per Hunt): Users can purchase as many stETH as users want during the Hunt to increase their HOUND token multiplier by 0.2. Users are also allowed to participate in multiple Hunts to increase their multiplier.
- Hound Hero (+0.5 Bonus): If a user wants to increase their multiplier by an extra 0.5x, participate in every StakeHound Hunt available before the launch of the HOUND token.
stETH – Trademark Dispute and Resolution
Yesterday it came to our attention that Lido ( @LidoFinance) released a public statement, promoted via Twitter, regarding the use of the “stETH” symbol. We were surprised to see this private matter brought to a public forum rather than to discuss this via existing direct channels.
To be clear, we do not think Twitter or any public domain is the appropriate medium for this discussion. Unfortunately, we now feel we have to correct some facts that we believe have been misrepresented and taken out of context on Twitter
Facts
For those of you who aren’t aware, StakeHound is a liquid staking platform which launched its first stakedToken stFIRO on the 29th of October and the second stXEM on the 7th of December. With many more stTokens are coming in the near future…
When Stakehound issues a new stToken, there is a substantial amount of work and coordination involved to make sure that our backend and our custody, staking and compliance partners work well together. With the anticipated launch of Ethereum staking, we began working on providing stETH to our customers as soon as it was announced on the 4th of November.
Registering a trademark is a normal business process and aims at protecting customers from mixing up different companies’ products that have the same name. This process exists precisely to prevent the need for confrontations and while we live and breathe the crypto philosophy and worked through countless nights to bring a quality liquid staking platform to the community, there is a real world that needs to be respected at times, and this is one of those times.
stETH & Lido
In December, our CEO, Albert, became aware that Lido was using these trademarks and sent a friendly email to the Lido team on December 19th 2020 to inform that StakeHound had a number of trademark rights and applications in relation to stETH and stakedETH in multiple places. He requested that in view of our trademark, Lido to stop using the “stETH” symbol to avoid confusion between StakeHound and Lido products.
The response was a letter from Defi LTD’s (Lido) legal counsel on December 31st, 2020. We were given two days to reply. Due to the nature of this response, we were forced to involve our own legal counsel who replied on Jan 5th asking for further clarifications on certain claims made. To date, we have not had a response other than the Twitter thread which has now followed.
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