Try Quests to earn cryptoLiquid Staking ETH Platforms Analysis
Question:
Consider all possible liquid staking ETH platforms. Then, find out the following:
- How much ETH was staked over time?
- How many unique depositors are there?
- How likely are depositors to use multiple platforms vs using a single platform?
- Are depositors Dollar cost averaging their ETH into the platforms?
- What is the avg/median/max/min/distribution of ETH deposits?
- Compare all the metrics above between the various ETH staking methods/platforms.
- The chosen platforms are: Lido, Rocket pool, Cream, Stakewise, stkr and Direct staking.
Summary of study and methodology:
In the process of staking, some digital currency is locked in a wallet so that a person can participate in the operation of that blockchain in exchange for a reward. In general, anyone is allowed to participate in staking on any blockchain that performs Proof of Stake – PoS. Different types of PoS enable people to participate in this process.
Ethereum has chosen this strategy to decentralize and speed up the network, and since its inception, it has operated on the basis of a proof-of-work consensus. However, one of the main reasons for switching to Proof of Stake is that it is much more efficient than the Proof of Work algorithm.
Core developers strongly support decentralization, which includes changes to PoS. In recent years, mining of the largest digital currencies, such as Ethereum and Bitcoin, has become heavily dependent on a few mining pools. Because of the competition, the pools try to create faster and more advanced hardware for mining.
The ethereum.core.fact_token_transfers table provided by Flipside has been utilized to underestimate the staking of ETH 2.0 on various platforms.
General Comparison:
- The direct staking has been dominated the process of staking ETH 2.0 from stake count as shown in the first donut chart.
- The competition of unique depositors on various platforms shown the leading performance of Lido and Direct staking tools.
- Over 13 million ETH have been staked on Direct staking and after that Lido has 2.94 million staked ETH and takes the second rank.
- The maximum staking ETH on platforms happened for Lido with 62k ETH and the Cream has the highest average stake of ETH among selected platforms.
- The median of staked volume for various platforms reveals the leadership of Direct staking method with 32 staked ETH.
Summary of analysis over time:
The outcomes related to the daily analysis reveals the following consequences:
- The daily unique number of depositors and stake volume over the past 2 months have been dominated by Lido and Direct staking method.
- September 1, 2022 was the considerable date due to the highest volume of stake on Direct staking method.
- The cumulative number of depositors has been revealed the competition between Lido and Direct staking method and shown the advantage of Lido after second week of August 2022.
- The cumulative volume of stake has been utilized to find out the start point of each platform and shown the breakpoint of staking for them.
Key findings:
The summary of outcomes related to the behavior of depositors has been shown in the two graphics. The analysis contains the cross usage of platforms and count of stake for depositors.
- According to the results, near 95% of depositors stake in just one platform among these staking tools and only 5% of depositors utilized various platforms.
- In this study, the depositors who staked more than one times have been considered as Dollar cost averaging (DCA) users. Among these selected platforms, the Stakewise has the highest DCA users who staked more than one time and the Rocket pool is the leader of only one time stakers.
References and useful links:
- Introduction to ETH 2.0 staking
- Staking tools: LIDO, Rocket pool, Cream, Stakewise, stkr and Direct staking.
- Github for ETH 2.0 staking
Author:
Credited by MZG
Discord handle: m.zamani#0361
Twitter handle: @GargariZamani