ETH 2.0 Liquid Staking: Low-Risk ETH Staking for High Yields

When Ethereum (ETH) transitioned its consensus mechanism from proof of work (PoW) to proof of stake (PoS) following The Merge in September 2022, many crypto enthusiasts welcomed the change due to the numerous benefits a PoS system brings to the blockchain, such as greater scalability and higher energy efficiency. 

The shift to PoS also meant that rewards are to be given to stakers instead of miners, simplifying the block validation process and allowing for greater decentralization. However, the barrier to entry for becoming a staker remains high, as one needs to stake at least 32 ETH (equivalent to $99,401 as of Apr 27, 2024) to become a validator and earn passive income while helping to secure the network.

To address this challenge, liquid staking services were developed that support staking a marginal amount of ETH to earn rewards while being able to use the liquid staking derivatives (LSDs) for other trading opportunities. While many decentralized finance (DeFi) protocols, such as Lido DAO and Rocket Pool, offer liquid staking services, Bybit’s ETH 2.0 Liquid Staking further simplifies staking by helping you with the LSD minting process.