Hord’s Liquid ETH Staking - How it Works

Jon Ganor

January 25, 2023

Hord’s Liquid ETH Staking - How it Works

On September 6th, 2022, the Ethereum network underwent a transition known as "The Merge." This was a move from a Proof-of-Work (PoW) system to a Proof-of-Stake (PoS) system. The Merge was completed by combining Ethereum's mainnet with the beacon chain, a separate PoS network.

As a Proof-of-Stake network, users can stake 32 Ethereum to run a validator. These validators use smart contracts to verify transactions on the network and receive transaction fees as an incentive.

Staking Ethereum on your own is rather difficult as it takes some technical expertise, a dedicated computer connected to the internet, and 32 ETH to run a node. The difficulty may be the reason why staking ETH through dedicated platforms such as Hord or on exchanges is popular.

In this post, we will discuss how Hord’s Liquid ETH staking platform works at length.

Staking ETH at Hord

Hord has launched a liquid ETH staking platform that offers the highest APRs, low fees, and an intuitive UI. One of the most significant perks is that there are no minimum staking requirements, meaning that users can stake as much ETH as they’d like. Another perk is minimal fees for stakers when they stake or unstake their ETH to make the platform more accessible.

In exchange for staking ETH at Hord, users receive hETH, representing their staked ETH combined with rewards. As such, the value of hETH is expected to be greater than ETH. In the future, the value of hETH may overtake the value of ETH, as hETH also contains rewards.

The hETH can be traded on DEXs or withdrawn for its underlying ETH value following Ethereum’s Shanghai upgrade.

hETH and ETH Staking Rewards at Hord

Hord offers the most competitive rewards for staking ETH in the blockchain industry. High APRs are provided by combining ETH staking rewards which average at 4% APR with MEV, auto-compounding, and additional Hord rewards.

MEV is short for Maximum Extractable Value. By prioritizing certain transactions on Ethereum as a validator, higher rewards are achievable. The MEV rewards are later auto-compounded to maximize client rewards.

Auto-compounded rewards mean that all MEV rewards are reinvested consistently back into the staking pool to provide higher APRs. Auto-compounded rewards give users higher yields than if they had chosen to withdraw their rewards after each period.

How hETH Works

1. Users stake ETH without minimums into Hord’s ETH pool via a secure smart contract

2. Users receive hETH tokens that represent users staked ETH proportionally combined with APR rewards

3. In addition to ETH staking rewards, Hord’s ETH staking pool has MEV boosts and Hord rewards. When combined, these rewards provide the highest APR

4. MEV boost rewards are auto-compounded in the pool consistently to maximize APRs, which increases the value of hETH.

5. hETH is tradable on DEXs or can be redeemed for its value in ETH at any time after the Shanghai hard-fork

Hord offers the best APRs for staking ETH in the blockchain industry. High APRs are provided by combining ETH staking rewards which average at 4% APR with MEV rewards, auto-compounding, and additional Hord rewards.

MEV is short for Maximum Extractable Value. By prioritizing certain transactions on Ethereum as a validator, higher rewards are achievable. Auto-compounded rewards mean that all MEV rewards are reinvested consistently back into the staking pool to provide higher APRs.

Users that receive hETH can trade it freely on DEXs or redeem it anytime after the Shanghai hard fork. On redemption, users will receive their staked ETH and ETH rewards.

tl;dr

Hord is a platform offering liquid ETH staking with no minimum staking requirements and minimal fees. By staking ETH on the platform, users can receive rewards in the form of hETH, a token representing their staked ETH and rewards.

Hord offers the highest APRs in the blockchain industry, achieved through combining ETH staking rewards, MEV, auto-compounding, and additional Hord rewards. hETH can be traded on DEXs or withdrawn following Ethereum’s Shanghai upgrade.