Ethereum's Proof of Stake (PoS) is a consensus mechanism used to validate transactions and add new blocks to the blockchain.
In the PoS system, instead of miners using computational power to solve complex mathematical problems to add blocks, validators are chosen at random to add blocks in the blockchain. Each validator will hold a minimum of 32 ETH and stake it as collateral to participate in the network's consensus process.
As a reward for validating transactions and adding blocks, Ethereum provides node operators additional ETH on top of their stake. These rewards are minted in return for helping secure the blockchain.
It is clear that PoS chains will be an integral part of the future of crypto, and become the foundation layer of which DeFi and metaverses will be built on.
However, PoS comes with some drawbacks for those wanting to participate directly as validators:
In order to solve these issues, liquid staking protocols were born. Liquid staking abstracts the staking of tokens from running a validator node.
In exchange for their tokens, depositors receive a representative (uniETH) token from the protocol which is a claim on the tokens they have staked.
uniETH represents the staked ETH plus all future staking rewards. uniETH does not grow in quantity over time but instead, grows in value, i.e. 1 uniETH becomes worth increasingly more than 1 ETH.
Bedrock on Ethereum removes several drawbacks that exist with Proof of Stake on Ethereum.
Ethereum requires a minimum stake of at least 32 ETH. Bedrock on Ethereum will allow anyone to earn the reward on any amount of ETH deposited with us.
When staking on Ethereum, users are required to have technical knowledge of interacting with smart contracts. Bedrock handles all interaction with the blockchain in our users’ place. Ethereum will also require users who make deposits to be technically proficient at running Ethereum nodes 24/7, at the same time keeping that node online and secure. Bedrock provides this service in our users’ place.
As PoS on Ethereum is being fully rolled out in several phases, staking now means your stake is locked until the Shanghai upgrade arrives, which could still be a while. With Bedrock on Ethereum, you instantly get uniETH when depositing and do not need to be locked with us. It can be traded, sold or held at any time, which provides our users with liquidity on their staked ETH.
This is dependent on the Ethereum blockchain; there will be a waiting time for validators to access the ETH they wish to unstake, as there is only a single queue for both full and partial withdrawals on the blockchain. However, you will receive uniETH when you deposit and it will still gain staking rewards over time in terms of the token value. uniETH can also be sold and traded on various DEXs and CEXs if there is liquidity available for the trade and can be used to provide liquidity to earn additional yield on platforms like Balancer.
Bedrock allows everyone the opportunity to earn rewards on any amount up to 32 ETH, as we do not have a minimum. We do recommend a deposit of at least 0.01ETH to make your transaction worthwhile. When you stake ETH, you will receive uniETH, which accumulates rewards over time based on the performance of our validator nodes on Ethereum.
There is a cumulative limit of 32 ETH you can stake with Bedrock on Ethereum. To lift the limit, we will require information for KYC checks in order to comply with various regulatory requirements and to prevent financial crime.
Please contact email@example.com if you would like to complete a simple KYC process.
uniETH is built on-chain, and all contracts are open-source and available for anyone to view. Total supply of uniETH can be checked and verified via https://etherscan.io/token/0xF1376bceF0f78459C0Ed0ba5ddce976F1ddF51F4
uniETH deposit smart contract captures all these information, which can be checked and verified via https://etherscan.io/address/0x4beFa2aA9c305238AA3E0b5D17eB20C045269E9d
Yes. uniETH smart contract has been audited by Peckshield. You can find the smart contract audit report for uniETH via https://github.com/RockX-SG/stake/blob/main/PeckShield-Audit-Report-RockXStaking-v1.0.pdf