Frequently Asked Questions

Q: What is StakeWise & How does staking work?
A: StakeWise is a DeFi platform that allows anyone to earn an income by staking ETH. Staking is a way of earning interest on your cryptocurrency by depositing it for a fixed period of time. Whenever you make an ETH deposit, StakeWise pools it with deposits from others and launch validators on the Ethereum network on your behalf. Validators participate in the Proof of Stake consensus mechanism and earn an income in ETH from it. StakeWise then distributes these earnings based on the user’s share of the pool.

Zengo has partnered with StakeWise to provide you with an easy way to stake your ETH and maximize your earnings – but with the added convenience of being able to exit from staking at any time, so you don’t have to remain locked up in staking like on other platforms.

Q: How much can I expect to earn?
A: Income from staking on Ethereum varies depending on the amount of ETH staked in the network in total. Current yield offered by staking ETH is around 4.4%, which does not include the StakeWise commission. StakeWise charges 10% of the rewards earned by users to maintain the platform & improve service. For example, if a validator earns 1 ETH in staking rewards, StakeWise’ share will be 0.1 ETH (10%), while the users will receive 0.9 ETH (90%).

Q: Are there any network fees I should expect to pay?
A: There is a network gas fee that users need to pay in order to make a deposit in StakeWise. The size of the gas fee will vary depending on the prevailing gas prices in the Ethereum network. Users can expect to pay $5-30 for the deposit transaction depending on the level of gas prices at the moment of their deposit. Similar gas prices will likely apply if/when withdrawing from the platform.

Q: Is there any minimum or maximum amount I can deposit?
A: There are no limits to the amount you can stake with StakeWise – whether it’s 1 gwei or 100,000 ETH, deposits of all sizes are accepted.

Q: How can I withdraw my ETH?
A: Your ETH will be locked up until validator withdrawals on Ethereum become possible (expected in 2023, but this may change). In the meantime, you get immediate access to a liquid staking token – stETH2 – which can be traded or swapped immediately via Uniswap for other tokens.

Q: Where can I learn more about StakeWise?
A: Head on over to their FAQ page to learn more about Stakewise, here.