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Ethereum Smart Staking Is Live on Nexo!

Dec 7, 20223 min read
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Ethereum Smart Staking Is Live on Nexo!

You’re now a few clicks away from validating the Ethereum network! With the launch of Smart Staking, we’re again on the quest to simplify the crypto ecosystem. There are no complexities, or gas fees to worry about. Read on to find out how you can receive 4 to 12% APY, no matter your Loyalty tier or the staked amount.

What is Ethereum Smart Staking?

As with everything else on Nexo, we’ve made Ethereum staking feel familiar. It requires nothing more than an Exchange transaction on your side. Simply swap your ETH for NETH (Nexo Staked Ethereum) at a 1:1 ratio, and you’re ready to earn staking rewards. The newly acquired asset serves as proof for your validation of the Ethereum network through Nexo’s validator node. Benefits include:

  • 4-12% APY, paid out daily in NETH
    Once you have NETH, you immediately start accruing compound interest. You receive the staking rewards daily and in-kind, directly to your Savings or Credit Wallet.
  • Same APY for every Loyalty tier
    Staking on Nexo is an excellent way for users that are yet to climb the Loyalty Program to earn high yield. The rate is the same for all, regardless if you hold NEXO Tokens in your account or not.
  • No balance limits
    Our Smart Staking allows you to stake as much as you want and earn the same APY, regardless of the amount.
  • Borrow against NETH and keep earning
    Your NETH can be used as collateral to borrow cash or stablecoins. Even better, NETH is the only asset besides the NEXO Token that will continue earning interest while in your Credit Line Wallet. The current LTV of the NETH is 50%.
  • No gas fees
    As we do the validation on your behalf, you don’t pay gas fees and deal with complexities.
  • Start with as little as $10 worth of ETH
    After you swap, we take care of delegating your stake to the validator node. This makes it accessible for anyone to help secure the Ethereum network.

Swapping NETH to ETH on the Nexo Exchange will unstake your assets. You will stop receiving staking rewards, but your ETH will start earning you interest through our Earn Crypto Suite.

Every Proof-of-Stake blockchain, including Ethereum, needs validators that verify transactions. The 32 ETH needed to activate a new validator node might be too high for many. With Smart Staking, you can participate in Nexo’s validator node quickly and earn rewards in the process.

The Benefits of Holding Nexo Staked Ethereum (NETH)

While holding ETH and earning or borrowing against it is a viable option, NETH has unique characteristics no other asset on Nexo has.

How to Stake through Nexo?

The quickest way to start staking is to go directly to the Nexo Exchange.

  1. Open the Nexo Exchange.
  2. Select ETH in the Pay With field and NETH in the Receive field and click “I Understand”.
  3. Choose the amount of ETH you’d like to swap for NETH.
  4. Click “Preview Stake” and then “Stake ETH”.

You can also find a quick-access button when you select Ethereum in the Wallet tab.


What is staking?

Staking is the process of participating in transaction validation on Proof-of-Stake blockchains like Ethereum. Staking rewards are paid out to validators who lock up their tokens within the protocol. To activate a new validator node, you'll need to stake 32 ETH. As this amount can be quite high for users, through products like Smart Staking, you can participate in Nexo’s validator node and help secure the network.

How are the rewards derived and calculated?

Like every Proof-of-Stake blockchain, staking rewards are derived from transaction fees within the network. The rate Nexo pays out is variable and depends on the Ethereum network rate, and the amount of ETH Nexo users stake through Smart Staking.

Staking APY changes daily as it depends on Ethereum network activity and transaction fees paid out to validators, as well as the total amount of ETH staked on the network.

Are there risks associated with staking ETH through Nexo?

Just like any Proof-of-Stake network, there can be issues with the validator's node operation itself. It’s highly recommended to inform yourself about the Ethereum network specifics and to assess the risks before staking through Nexo.

How can I unstake my assets?

To provide flexibility to its users, Nexo allows you to swap NETH back to ETH from the Nexo Exchange. This will effectively “unstake” your assets, even though currently, Ethereum staked on the Beacon Chain itself can’t be unstaked. For this reason, Nexo can’t guarantee a 1:1 NETH/ETH swap ratio before the Shanghai upgrade is completed. This is when staked ETH will be available for transfer out of the Ethereum network, and you will be able to swap back to ETH at a 1:1 ratio. For the moment, such swaps will be sourced from the open market, where the exchange rate may vary.

How is NETH different from ETH?

NETH (Nexo Staked Ethereum) serves as proof of your participation in the validation of the Ethereum network through Nexo’s validator node. The asset earns you a share of the validator rewards. You can’t create Fixed Terms or opt to earn your interest in NEXO, to increase your rate. NETH doesn’t have a balance limit, so you earn the same amount, no matter how much you stake or what Loyalty tier you are in. In comparison to ETH, the asset continues to earn you interest when used as collateral for an Instant Crypto Credit Line. Upon swapping NETH, the standard crypto rewards of up to 0.5% don’t apply. Currently, you can’t top up or withdraw NETH.

Disclaimer: Smart Staking is currently not available for citizens of the US, Australia and Canada, and US territories.

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