Tasty ETH Rewards with SharedStake

Ethereum 2.0 Staking w/ Greater Rewards (& Better Taste!)

Edit: SharedStake has since suffered a rug. The author no longer supports this project. Exercise caution with all your investments in DeFi.

Every once in a while, something comes across the table so delicious, so desirable, you just got to give it a try. And unlike the time when you experimented with psychedelics or perhaps your sexuality, it stuck with you. Maybe it was enough to earn a positive Yelp review. Perhaps you even wanted to tell everyone you met about it, like a vegan on a crusade. Regardless, you definitely wanted to order it again, and share it with a friend.

This anonymous author from the land of Crypto Twitter is not here to judge the dishes you’ve consumed in the past, present nor future. I simply am here to suggest a plate I recently tried and quite enjoyed. I am talking about the decentralized finance project SharedStake. Let me share with you what there is to enjoy about this project from first bite.

What Is SharedStake?

SharedStake is a decentralized Ethereum 2 staking solution that allows users to stake any amount of Ether and earn additional yield on top of their ETH2 rewards. Let’s break down what this means and the benefits it offers users of the SharedStake platform.

Ethereum 2.0 staking is not an easy process. You need 32 ETH to become a full validator along with other inflexible requirements through the standard Ethereum staking process. With SharedStake, any amount of ETH may be staked, reducing the financial barrier to entry. The staking process is also much easier and can be done in as little as a few minutes on the website (if you’re willing to pay the gas premiums to expedite the transactions).

Gas is a concern with any DeFi project built on Ethereum, but the rewards are attractive enough to make it worthwhile for the right investors and investments. This is definitely a consideration that users will want to make for themselves while doing their own research and is not financial advice. Smart contract security is top-of-mind as well, with Certik performing an audit of SharedStake protocol that found no major issues and any minor issues have since been resolved. Future audits are also in the works, including one planned with ConsenSys.

As for ‘additional rewards’, APYs on SharedStake are as high as ~40% or more for their vETH2 pool compared to 3-7.5% on Coinbase. If you’re willing to accept the risk of impermanent loss and $SGT price fluctuations, the Uniswap SGT LP pool (SGT/ETH) can earn you an estimated 280% APY or higher. All rewards are paid out in $SGT, SharedStake’s native governance token, with a third $SGT staking pool earning an estimated 150% APY.

In my view, SharedStake has the potential to be as groundbreaking and transformative for earning rewards on ETH as Badger DAO was (and still is) for earning on BTC. That is something potential investors should take note of, especially with SharedStake being a relatively new project with a low marketcap, active community, and a growing number of partnerships and developments in the works.

Interview with Chimera

I had the opportunity to interview a developer at SharedStake. SkyHigh DeFi and I conducted an impromptu DeFi interview with Chimera after he agreed to join us in a recorded discussion of the project. Chimera is a software engineer with 10 years of experience and an interest in Ethereum since pre-2016. While I had already planned to deposit in the vETH2 and SGT LP pools and, full disclosure, am one of the ‘Sergeants’ now in their Discord, the interview solidified my confidence in their project. Hours of research lead up to this point, so I recommend the same for anyone considering investing in the project (or any project for that matter).

We had the opportunity to cover numerous subjects, including progress with the project so far and plans for the future. To that point, SharedStake’s take on community governance came up quite often. I was particularly excited to see a COVER Protocol partnership detailed on their Snapshot page that was supported through governance voting along with RULER, another COVER project. Another particularly exciting one is their Chainlink partnership. With consistent price feeds thanks to the oracle $LINK, SharedStake can minimize arbitrage opportunities, such as through flash loan exploits that plagued much of DeFi summer and beyond. Beyond partnerships, the Snapshot page is a great way to see governance in action at SharedStake. SIPs (SharedStake Improvement Proposals) mirror what you’d find with other DeFi projects such as Badger to manage changes to the protocol that are voted on by the community. However, much like other DeFi projects, the SharedStake Discord is where most of the discussion actually occurs with community members.

When it comes to partnerships, SharedStake is essentially looking to increase liquidity for its users while reducing limitations. Liquidity is, after all, one of the most important benefits of using SharedStake versus conventional Ethereum 2.0 staking. Instead of having your ETH locked in a staking contract for months or years, you can remove your deposit at any time less a 0.3% fee. When I described it as a convenience fee, as it makes sense in the context of the value being provided by the protocol, Chimera countered that it has a much more important purpose. While initially providing for the costs associated with necessary infrastructure, including redundancy of validators (to avoid downtime) and region expansion, an important consideration for the future is the establishment of an $SGT buyback program. Buyback programs are a pivotal achievement in creating a circular economy surrounding a project. Other focuses include future optimization for gas fees and being able to take a loan on your ETH collateral (with RULER and other future partnerships). The ability to take loans on your stake is something projects like Badger DAO are also motivated to implement. Badger DAO’s autocompounding ‘Setts’ are also a source of inspiration for future liquidity pools at SharedStake.

I asked Chimera how SharedStake compares to other similar ETH 2.0 staking protocols, including Lido Finance. He began by stating the team’s respect for other DeFi projects in the spirit of collaboration. Where he sees SharedStake being different is in their community focus which is present all the way up to the tokens locked away for investors, VC’s and so forth. Paying the founding team was less a concern than incentivizing a willing community.

I am still getting acquainted with the community at SharedStake, but based on the project’s progress in a few short months, it appears to be strong and capable. Chimera mentioned that they are seeking developers and content creators alike to join their community, so there are still plenty of opportunities to get involved in this project. Of particular interest is an airdrop that will take place in April. Read this article to learn more about how you can qualify for the airdrop by staking on SharedStake today!

In conclusion, there appears to be a lot to be excited for at SharedStake. If you’re hungry for something a little bit different, and you love the taste of ETH rewards, I highly recommend it!

Do your own research. Not financial advice. Make responsible decisions and be the future you want to see in DeFi.

-DeFi Fry