Since Ethereum’s transition to Proof of Stake, liquid ETH staking has seen significant growth, with Lido and its stETH token leading the charge. Lido currently controls 29% of the ETH staking market according to Dune Analytics, reflecting its dominance. However, this concentration poses a risk to Ethereum's decentralization.
In response, new liquid staking platforms have emerged, some offering higher APRs to attract users away from Lido and promote decentralization. Hord, for instance, offers higher APRs on stETH to encourage a more diverse staking ecosystem. By providing competitive returns, these platforms aim to decentralize staking power, reduce dependency on a single entity like Lido, and enhance the overall security and resilience of the Ethereum network.
Higher APRs also serve to expand the customer base of these platforms, making them more attractive to ETH holders seeking better returns.
When you stake your stETH on platforms like Hord, the process involves several steps to maximize your returns and support the network’s decentralization.
The platform first swaps your stETH for ETH, converting your liquid staking token into the ETH. The accumulated ETH from multiple stakers is then used to launch a new staking node, helping to further decentralize the network by spreading the staking power across more nodes.
In exchange for your stETH, you receive the platform's liquid staking token—in Hord's case, hETH. This token represents your staked ETH on the platform. Your hETH starts generating APR immediately, as the platform uses the staked ETH in the new node to earn staking rewards, which are then distributed to hETH holders.
Hord currently supports staking stETH and wstETH on its platform. The team plans to expand and add more LSTs soon, providing users with more options for maximizing their staking rewards.
To stake wstETH and stETH at Hord, follow these simple steps:
1. Visit Hord's website and click on the "launch app" button.
2. Connect your wallet with the ETH you wish to stake. Hord supports all popular web3 wallets including Metamask, Coinbase Wallet, and Trust Wallet.
3. Click on ETH, and a drop-down menu will appear, listing all supported assets, including stETH and wstETH.
4. Select the asset you wish to stake and input the amount and click the Stake button to proceed with staking.
5. Once the transaction is confirmed, your tokens are successfully staked.
Staking liquid staking tokens like wstETH and stETH on alternative platforms like Hord benefits Ethereum by enhancing decentralization. It also benefits users by offering higher APRs, allowing them to earn more on their staked assets while contributing to the network's security and stability.
