Ethereum Smart Staking Is Live on Nexo!

4 min read
New Features

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 paid out daily, 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 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 from 0% interest
    Your NETH can be used as collateral to borrow cash or stablecoins. On a Platinum Tier you can secure our lowest rate of 0%. The current LTV of the NETH is 50%.
  • Start with as little as $1 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.
  • No gas fees
    As we do the validation on your behalf, you don’t pay gas fees and deal with complexities.
  • Instant 1:1 unstaking
    Swapping NETH back to ETH on the Nexo Exchange will instantly unstake your assets. The ratio is 1:1, meaning you will receive the same amount of ETH that you’re currently staking. When you unstake, you will stop receiving staking rewards, but you will start earning interest on your ETH through our Earn Crypto Suite.

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.

FAQs

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 ЕTH?

You can unstake your Ethereum instantly anytime with a simple swap from NETH to ETH. The ratio is 1:1, meaning you will receive the same amount of ETH that you’re currently staking. At any time, you can stake your Ethereum again from the Nexo Exchange.

As the demand for staking grows, Nexo reserves the right to add a cooldown period when unstaking to reflect the Ethereum mainnet mechanics over which Nexo has no control.

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 Тier you are in. 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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