Learn how to stake Ethereum (ETH) using your Trezor hardware wallet via the Trezor Suite application: the safest way to stake ETH with ease.
What is staking?
Staking is the process used for validating transactions on blockchains that use the Proof of Stake (PoS) consensus mechanism. Ethereum's switch from Proof of Work (PoW) to PoS through its upgrade to Ethereum 2.0 was motivated by several key factors, each aimed at improving the network's efficiency, security, and scalability. You can learn all about staking ETH by watching this video:
In general, a stake is defined as a share or financial involvement in a business, enterprise or service.
Broadly speaking, there are four classes of ETH staking:
- Staking as a validator: Requires a deposit of 32 ETH, and as a validator you will help maintain the integrity of the Ethereum network by storing data, processing transactions, and adding new blocks to the Ethereum blockchain. Naturally, this also requires proper hardware and technical knowledge.
- Staking as a service: Aimed at users who are perhaps less tech savvy but still want to stake 32 ETH and have a service validate on their behalf. This method requires a trustworthy provider and careful control of your keys.
- Pooled staking (as implemented in Trezor Suite): This method is ideal for users who either don't have or don't want to stake 32 ETH. Staking pools enable collaborative staking, which allows more users to stake smaller amounts to make up the 32 ETH required to activate a set of validator keys.
- Centralized exchanges: These run large numbers of validators by consolidating many staking pools. This is the riskiest approach, as you are not in control of your keys, and relies on the greatest trust assumptions.
Staking helps maintain the integrity of the Ethereum blockchain. Validators who misbehave (e.g. by failing to identify the head of the chain on time, or by double-signing transactions) risk losing ETH through a process known as slashing.
Staking ETH with Trezor
Ethereum staking is available on all Trezor devices (Trezor Model One, Model T, Safe 3 and Safe 5) and is accessible to users worldwide.
In Trezor Suite, the service is provided by a third party, Everstake. The funds are sent to Everstake to be staked via a smart contract. Everstake is a widely-used service that lets users stake their ETH without having to set up their own validator node. This makes the process much easier for everyday users, and negates the need for the 32 ETH requirement to become a full validator.
As staking is fully maintained by Everstake, Trezor assumes no responsbility if anything should happen to Everstake and, consequently, the funds delegated to their stake pool.
To stake ETH, users require a minimum of 0.1 ETH. Users cannot stake 100% of their ETH funds, as there must be sufficient funds left in the account to cover the associated gas fees. During the staking period, users cannot trade staked ETH. The final person to add funds to a pool (i.e. make up the total 32 ETH) will pay a fee to start the next one.
When staking ETH via Trezor, the funds are sent to the Everstake staking pool.
Retrieving your ETH and rewards from the stake pool consists of two steps: unstaking and then claiming. Unstaking does not have a set time-frame and is dependent on network conditions. After the unstaking step is complete, the ETH and any rewards can be claimed instantly.
While unstaking as a solo validator should be done with caution, unstaking as part of a pool can be done at any time. Where possible, ETH will be instantly unstaked if there are funds entering and exiting the pool simultaneously. For example, if a user unstakes 5 ETH and 1 ETH is available, the user automatically gets 1 ETH but needs to wait for the remaining 4 ETH.
Why stake Ethereum?
Staking ETH benefits both the network and individual users. By staking ETH, validators help secure the network. The PoS mechanism relies on validators to process transactions and propose new blocks. The security of the network increases with the number of ETH staked because it becomes more expensive for an attacker to acquire the necessary stake to compromise the network. Meanwhile, individuals can use staking as an easy method for earning rewards on their holdings. Validators who are responsible for processing transactions and creating new blocks in the Ethereum blockchain are rewarded with new ETH.
Staking rewards are auto-compounded, i.e., they are automatically re-invested. This allows Trezor users to easily grow their ETH rewards over time.
Is staking ETH safe?
Under usual circ*mstances your Trezor protects your keys, ensuring you retain ultimate control of your ETH and any other crypto funds. However, the staked ETH and any associated rewards reside in an Everstake pool, i.e., are no longer directly secured by your Trezor. This means it is Everstake's responsibility to protect your ETH throughout the staking process.
Everstake have undergone independent security audits and the reports are available at the following links:
- ChainSecurity: Everstake – ETH B2C Staking Security Audit
- Ackee Blockchain Security: Everstake: 0.1+ ETH staking solution audit summary
Everstake are a well respected professional service, conforming to high security and operational standards.
As with any other third party providers, it is advisable to carefully review Everstake's terms, conditions, and any fees they may charge for their services.
How does staking work in Trezor Suite?
The staking process in Trezor Suite is designed to be as intuitive and user friendly as possible. The following video gives a rundown of how to stake your ETH in Trezor Suite, and complete step-by-step instructions follow below:
- In the Ethereum Overview tab, you’ll see the balance of your ETH account(s) protected by your Trezor. If you’ve got (more than) 0.1 ETH, you're ready to start staking.
- Click on the Staking tab, and you'll see the Stake Ethereum info page in Suite. Once you've read and understood the information, click on Start staking:
- First, you'll see the Staking in a nutshell window, which serves as a quick reminder of the key facts related to staking ETH:
- After you've clicked on Got it!, you will then need to give consent for your staked funds to be maintained by Everstake:
- You will then be presented with the Stake Ethereum window. You can set the amount you wish to stake by entering the value in ETH or in your favoured currency:
Remember, you need at least 0.1 ETH to delegate your funds to the Everstake stake pool.
- Once you've entered the amount you wish to stake, select Continue
- In the Confirm entry period window, check the box to acknowledge the conditions, and then select Confirm & stake:
- Confirm the amount and recipient address using your Trezor: press Confirm on your device once you're happy the details match.
- Once you've confirmed the address, fee and total amount, select Stake:
- That's it! You've started staking your ETH. You will need to wait for the transaction to be confirmed, and then for the funds to be added to the stake pool, which can take a few days. Any time you need to check the status of your staked ETH, just open the Staking tab in Trezor Suite:
- Here you can check the status of your stake requests, alongside other options such as Stake more (i.e. increase your staking delegation) and Unstake to claim (begin the process of unstaking your ETH).
How does unstaking work in Trezor Suite?
It only takes a few steps to move your ETH (plus any rewards) from the Everstake pool back to your Trezor:
- Go to the Ethereum Staking tab, where you will see a breakdown of your staking activity. Click on Unstake to claim.
- Set the amount of ETH you'd like to unstake, and set a custom fee if desired. Then select Unstake.
- You will then need to confirm the receiving address and maxmimum fee using your Trezor. Once you've done this, you can then select Unstake.
- Once the unstaking is complete, you will then be able to Claim your funds instantly.
