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The crypto industry is growing at an unprecedented pace. As more people become interested in cryptocurrencies, the need for reliable and trustworthy staking pools becomes increasingly apparent.
That’s where StakeWise Pool comes in. We are talking about a staking pool that aims to offer high rewards, security, and stability. Its team has years of experience in the industry, and it wishes to provide its users with the best experience.
In today’s review, let’s learn more about StakeWise and its staking pool feature.
What Is StakeWise Pool?
The crypto community has been waiting for the launch of Ethereum 2.0 for a while. This Ethereum upgrade will bring a host of improvements and enhancements, including faster transactions, lower fees, and improved scalability.
Developers have postponed Ethereum 2.0 since 2020, leaving time for several crypto projects to prepare for its launch on the market.
StakeWise Pool is a place where you can stake your coins and get rewards. The project promises high rewards, security, and stability. As explained below, the team has built an infrastructure to allow its users to benefit from the next Ethereum upgrade.
Getting Started with StakeWise Pool
Getting started with staking with StakeWise Pool is relatively easy. All you need is to connect your wallet and deposit your coins. Once your coins are on the system, they will start earning rewards.
While staking with StakeWise Pool is generally safe, there are always risks involved. Make sure you understand the risks of staking crypto before you start doing it.
One of the main risks of staking coins with StakePool is the possibility of losing your coins. This can happen if a hacker gains access to the pool or another system user manages to steal your coins.
Another matter you must consider is that you may not receive rewards for your staked coins. This can happen if the pool does not generate enough rewards to cover all of the stakers.
If you encounter any problems while staking with StakeWise Pool, the customer support team has the task of helping you. You will need to contact them and explain what went wrong or mention your doubts.
Depositing Your Crypto on StakeWise Pool
Before you learn how deposits work on StakeWise Pool, there is an essential difference you need to understand. This project uses two different tokens to operate:
- sETH2: or “staking Ethereum 2.0.”
- rETH2: or “reward Ethereum 2.0.”
This operation is necessary because Ethereum 2.0 is not yet operational as of today. Therefore, the tokens above replicate how this upgrade will work on the market.
The StakeWise Pool accepts deposits of any quantity of ETH. StakeWise creates an identical number of sETH2 for each new deposit into the Pool (i.e. 1 ETH = 1 sETH2). Within 24 hours of acquiring your sETH2 token, you will begin earning rETH2.
All the ETH you deposit initially go into a Pool contract until the system collects 32 ETH. This operation allows StakeWise Pool to select a new validator for your staking operation.
The Validator Registration Contract receives 32 ETH from the Pool Contract (VRC), and a new Beacon Chain validator joins the system.
Once the newly formed validator has passed the activation phase, it will produce rewards for StakeWise Pool users. StakeWise creates a new rETH2 token every time the Pool receives ETH as a payout.
Withdrawing Funds from StakeWise Pool
With your rETH2 and sETH2 in the staking account, you may choose to withdraw a part of your funds. In order to do this, StakeWise Pool allows you to burn these tokens and receive ETH in your wallet.
Withdrawing your rewards from StakeWise Pool is relatively easy. Connect your wallet and go to the “Withdraw” page. You can choose how much you want to withdraw and where you want to send it.
Once you’ve selected, click “Withdraw,” and your rewards will go to your chosen address.
The Horcrux Feature
Since April 2021, StakeWise has offered a non-custodial solution for staking. This means that you no longer have to trust us with your coins. Instead, you can stake their coins directly on the Ethereum 2.0 network.
This new solution offers several benefits, including increased security and transparency. Users can now see precisely where the system is taking their coins and how many rewards they earn.
Seven portions of the Horcrux, a trustlessly produced withdrawal key, are in the hands of the Ethereum community’s most well-known personalities.
This key lets its owner withdraw rewards from StakeWise Pool, and the key holder can only access it.
The Horcrux aims to ensure that stakers can safely withdraw their rewards from the StakeWise Pool.
StakeWise described the Horcrux as a groundbreaking new invention. In simple terms, this feature allows well-known personalities in the ETH community to oversee the withdrawal system.
How to Join a Staking Pool with StakeWise
If you want to join a staking pool, you must first connect your wallet to the website. This operation will allow you to deposit your coins into the pool and start earning rewards.
If you’re not sure how to connect your wallet, you may see the instructions below:
- Go to the StakeWise website and click “Connect Wallet.”
- Once you click, you must select one of the available options. The project supports MetaMask, ZenGo, Tally, Portis, WalletConnect, Coinbase Wallet, Ledger, and Monitor Wallet.
- You can go to the “Pools” page and choose which pool you want to join.
- Click on the “Join Pool” button and follow the instructions.
If you click on the “Don’t have a wallet?” page, you will directly go to the official MetaMask website. This wallet is a popular choice on the market, with many MetaMask guides available.
Another Way to Earn Crypto on StakeWise Pool: Yield Farming
StakeWise Pool also lets you use yield farming. Yield farming is a way to increase your rewards by locking your coins in the pool for a longer period.
With this feature, you can earn higher rewards than you would earn if you just used a staking mechanism.
If you’re interested in yield farming, you must click the “Farm” button on your reward dashboard. This operation will open a new page to see yield farming statistics and the available pools.
Similarly to staking, you must look into these options and select the pool that best suits your preferences.
Using StakeWise Pool, you may link your wallet and begin earning rewards. You can also increase your rewards by joining one of the available pools or using yield farming. Users may benefit from the Horcrux feature’s enhanced security and transparency.
The team’s website and social media pages provide information on StakeWise Pool and its solutions for crypto investors.