Ethereum staking was introduced in 2020 when the Ethereum network planned to transition from proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism with the aim of improving the security and scalability of the Ethereum network. With the PoS consensus mechanism, staking is an essential aspect of the Ethereum ecosystem. Any user with ETH could help secure the network alongside earning the desired rewards in the staking process.
Staking of ETH is done in batches of 32 ETH, allowing a person to become a full validator and to receive the staking rewards. Please visit the official Ethereum website for more information.
On Bitfinex, we help you make the most of staking through an easy-to-use interface, simplifying the staking mechanism and removing the technical hurdles associated with setting up and running a validator node. Also, this allows you to stake less than the required 32 ETH, giving you the option to stake as little or as much as you prefer.
How to start staking ETH at Bitfinex
What is ETH2Pending
As you may be staking less than 32 ETH, you will need to wait for the batch to be filled to the required amount. Therefore, during this waiting process, your ETH will need to be converted to ETH2Pending - ETH2P. This means that your ETH is pending and waiting to be grouped in a batch to begin staking.
Important: There are no staking rewards for this period. You will only start earning weekly staking rewards once the batch is filled and you hold ETH on your account.
How to convert ETH to ETH2Pending - ETH2P:
1. Firstly, find the Currency Conversion tool on your Wallets page.
2. Enter the amount of ETH you would like to stake in the Amount field.
3. In the From field, select ETH - Ethereum. In the To field, select ETH2Pending - ETH2P.
4. Select where your ETH is with the From Wallet field.
5. Select where you would like to send your converted funds with the To Wallet field.
Note: You do not need to keep your ETH funds in a specific wallet to get staking rewards.
Finalise the process by clicking Convert.
From ETH2Pending to ETH2:
1. The ETH2Pending (ETH2P) tokens created will now be automatically used for staking.
2. Once the staking batch has been completed, the ETH2Pending balance will be automatically converted into an ETH2 balance.
Note: Staking rewards on staked ETH will be reflected as ETH2Rewards.
How to unstake ETH2 and unlock your ETH2Rewards on Bitfinex
What is ETH2Unstaking (ETH2U)
The Ethereum network needs time to process unstaking requests, and this can take from weeks to months. To unstake your ETH2 or unlock your ETH2Rewards on Bitfinex, you need to convert your ETH2 or ETH2Rewards to ETH2Unstaking - ETH2U. Once this is done, a request will be submitted to the Ethereum network to unstake or unlock, as applicable, a corresponding number of ETH.
Note: ETH2Unstaking is the representation of staked ETH (ETH2) or ETH2Rewards that is due to be unstaked or unlocked by the Ethereum network.
Important: There are no staking rewards for ETH2Unstaking. You stop earning weekly staking rewards once you request to convert your ETH2 into ETH2Unstaking.
How to convert ETH2 and ETH2Rewards to ETH2U:
1. Firstly, find the Currency Conversion tool on your Wallets page.
2. Enter the amount of ETH2 you would like to unstake or the amount of ETH2Rewards you would like to unlock in the Amount field.
3. In the From field, select ETH2 - ETH2X or ETH2Rewards - ETH2R.
4. In the To field, select ETH2Unstaking - ETH2U.
5. Finalise the process by clicking Convert.
6. Following the conversion, the balance will be irreversibly converted into ETH2Unstaking - ETH2U.
7. Then, based on the result of the unbonding process of the staked funds on chain, ETH2Unstaking - ETH2U balance will be converted to ETH, which can then be traded or withdrawn.
Important:
- The conversion request from ETH2 - ETH2X and ETH2Rewards - ETH2R to ETH2Unstaking - ETH2U is final and irreversible.
- Once you convert your ETH2 - ETH2X to ETH2Unstaking - ETH2U, it will no longer be staked and will cease to earn staking rewards.
- Due to Ethereum network limitations, the ETH unstaking or unlocking requests may take some time to be processed. Customers will have to wait for the ETH2 - ETH2X or ETH2Rewards - ETH2R to be unlocked by the Ethereum network. Bitfinex does not control the Ethereum network and cannot provide information about when ETH2 - ETH2X or ETH2Rewards - ETH2R will be unlocked by the Ethereum network. Bitfinex understands that unlocking may, however, take from weeks to months.
Ethereum Staking — Frequently Asked Questions (FAQ)
— What is the minimum amount for staking ETH?
There is no minimum requirement on the amount of ETH held in order for a user to participate in staking on Bitfinex. While ETH is staked in batches of 32 ETH on a first-come, first-served basis, users can input any amount they would like to stake.
— Can I trade ETH2?
Yes, ETH2 is available for trading on Bitfinex. You can find the trading pair by entering ETH2 in your Tickers box.
Important: Bitfinex makes no guarantee that it will always continue to permit trading of ETH2. Bitfinex may remove the ability to trade ETH2 at any time, on any or no notice and for some or all users.
— Can I withdraw ETH2?
Yes, however, you need to first convert ETH2 to ETH2Unstaking and once the funds are unstaked, the balance will be converted into ETH, which can then be withdrawn.
— Who is not eligible for ETH staking?
ETH staking is not available to any Prohibited Person, such as a citizen or resident of the United States of America.
For details, please view our Terms of Service.
Important:
- The ETH staking service is available to our users, pursuant to our Terms of Service and additional terms that users will be presented at the time they choose to stake.
- If you cease to maintain your account with Bitfinex for any reason, including termination by Bitfinex, while you hold a balance of ETH2 or ETH2Rewards, you will forfeit any rights you may have pursuant to the Terms of Service to the ETH that the ETH2 or ETH2Rewards represents.
If you have any questions, please feel free to reach out to us at Bitfinex Support. We are happy to help!
