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⚡ ETH's juicy new dividend

⚡ ETH's juicy new dividend

PLUS: Your step-by-step guide to staking ETH

Alex M.
May 17, 2023

GM everyone. This is 2036, the tiny crypto newsletter with huge returns.

Here’s what we’re serving up today 🍲: investors securing the Ethereum network are making it rain $$$. Their average annual yield on Ethereum is 8.5%.

Can anyone do this? And what does the process look like?

Let’s dig in.

BTW: we’re switching up the format today - let us know what you think at the bottom of the email! 🙏

🥔 Today’s meat and potatoes

Get smarter on crypto in 2 minutes

Blockchains are safe because they’re decentralized i.e. secured by millions of people with the same common goal:

To maintain the stability of the blockchain and get paid to do so.

The Bitcoin blockchain is secured by supercomputers competing to solve difficult math problems.

This is called mining and makes Bitcoin a “proof-of-work” blockchain (miners have to do “work” to get paid a small fee for solving problems)

Ethereum, on the other hand, is secured by people locking up their ETH in exchange for an annual yield (= dividend).

This is called staking and makes Ethereum a “proof-of-stake” blockchain.

It also makes Ethereum the most established way to earn a dividend on your crypto. Anyone can take their ETH, lock it up, and earn a yearly dividend.

(Remember, you get the yield AND the increase in the price of ETH…double win)

Up until now, stakers earned a 4-5% annual yield on their ETH.

But recently, that yield has skyrocketed to 8.5%.

Now - there is good news, and there is less good news:

1/ The good news is that anyone can stake their ETH and start earning yield.

2/ The less good news is that to earn the juicy 8.5% annual return, you need:

a minimum of 32 ETH
to wait around 27 days

BUT

3/ The other good news is that you can still stake your ETH with as little as $5 of ETH, though you’ll earn a little less than 8.5%.

That’s because validators - stakers with 32ETH - allow smaller ETH-holders to pool their resources together.

So if you have some ETH and/or want to earn some yield on your crypto, your two most popular options are to:

a) Stake your ETH through a centralized exchange like Coinbase or Binance. Simply log in to your account, and click Earn —> Stake.

Right now, the staking rewards on Coinbase are above 7%. Not bad at all.

inside the Coinbase interface

b) Stake your ETH through a liquid staking pool (which I know sounds complicated, but really isn’t, I promise) like Lido.

You’ll earn 6% on Lido today. But you can boost this to nearly 8% with a tiny amount of work - which we’ll explain in another newsletter. So stay tuned.

Of course, if you’ve got the full 32 ETH ($58,400), the step-by-step details are on the Ethereum website.

Happy staking 🎉