What is ETH 2.0 Liquid Staking?

ETH 2.0 Liquid Staking is a way to earn rewards while helping to validate the Ethereum network. The process involves locking up ETH as collateral in order to participate in on-chain activities and receive rewards for doing so. 

 

To learn more about the Ethereum Shanghai Upgrade, please refer to the following articles:

Ethereum Shanghai Upgrade: Can ETH Prices Soar Again?

Ethereum Price Prediction: How To Trade ETH Post-Merge

Steps To Get Ready for the Next Bull Run With Bybit

What are the benefits of staking?

By participating in staking, you can earn rewards by receiving daily yield or gain from value appreciation of the liquid token in recognition of your contributions to network security. It also helps decentralize the network and minimizes the risk of a single point of failure, which is essential for blockchain networks.

 

Read More

Introduction of ETH 2.0 Liquid Staking

Liquid Staking Derivatives: A Staking Alternative Post-Merge

How are staking rewards generated?

Staking rewards come from on-chain validation, meaning stakeholders are rewarded for actively participating in the network and contributing to its security and decentralization. The APR fluctuates on a daily basis, and the actual APR is based on your daily snapshot results.   

What is the difference between the Stake ETH for stETH and METH?

The main difference between Stake ETH and METH are as follows:

 

ETH Liquid Staking Protocols:

• Staking ETH for stETH is facilitated through the liquid staking protocol provided by Lido Finance.

• Staking ETH for METH is conducted via the Mantle Liquid Staking Protocol (LSP).

 

Earning Rewards:

For stETH: 

• When you stake ETH, our system automatically mints it into stETH at a 1:1 ratio.

• Holding stETH in your Bybit account allows you to earn a stETH daily yield based on your stETH holdings. 

• The more stETH you have, the more ETH you can receive upon redemption.

 

For METH: 

• When you stake ETH, our system automatically mints it into METH according to the exchange rate. 

• The actual amount of mETH received may vary slightly from the estimated amount due to factors such as the mETH Exchange rate adjustment or fluctuations in on-chain staking amounts. 

• The value-accumulating METH signifies your ownership of the staked ETH and accrued rewards. The exchange rate between mETH and ETH is designed to gradually increase over time, potentially enhancing the value of your holdings.

• With a higher value of METH, you can redeem more ETH.

 

For more detailed information, please refer to the Introduction to ETH 2.0 Liquid Staking.

What is stETH?

stETH is a liquid token issued by the decentralized staking pool, Lido. When you stake ETH in their network, you will receive stETH in return. 

How does Stake ETH for stETH work on Bybit?

When you stake ETH for stETH, our system automatically mints it into stETH at a 1:1 ratio, which is then stored securely in your account. You will then begin to earn daily rewards in stETH based on the amount of stETH snapshot in your Bybit accounts. Bybit will handle the minting process for you, so you don't have to worry about performing any on-chain activities or gas fees. 

 

You can redeem your stETH holdings to ETH anytime and your stETH will be swapped back into ETH at a 1:1 ratio. Once you have submitted a redemption request, you will not be able to receive the rewards for the corresponding amount of stETH. Please note that the redemption requires a few days to process and you will only receive ETH in your Funding account after a successful process. 

What is the effective stETH eligible for the snapshot?

Hourly snapshots of your Spot, Funding, and Unified Trading Accounts (if upgraded) will be taken between 12AM (midnight) UTC and 11:59PM UTC. The effective stETH amount is determined as the minimum amount recorded in all hourly snapshots. Please note that while ETH 2.0 Liquid Staking is not supported on subaccounts, the stETH amount held in your subaccounts will be included in the hourly snapshots.

 

Please be aware that any withdrawals of stETH made on that day will disqualify you from receiving the yield distribution for the day. Any stETH used as collateral in Crypto Loan will also be excluded from the snapshot. 

How long does it take to process the Staking and Redemption of ETH? 

To stake ETH for stETH, the minting process may take 15-30 minutes.

 

To redeem stETH for ETH, the withdrawal process may take at least 5-7 days. The estimated distribution date is calculated based on data provided by Lido and may be delayed if there are changes to the estimated withdrawal date provided by Lido.

What can I do with stETH on Bybit?

With stETH on your Bybit account, you can receive a daily yield in stETH based on your daily stETH holding. On our Unified Trading Account, you can trade using your stETH tokens as collateral. Additionally, you can also trade on our Spot market or withdraw your stETH from Bybit - although please be aware that any withdrawals made on that day will disqualify you from receiving any yield distributions for that day.

How can I get stETH into my Bybit Account?

You can obtain stETH in the following ways:
1. Stake your ETH into ETH 2.0 and your ETH will be minted into stETH 

2. Buy from the stETH/USDT Spot pair on Bybit.

3. Deposit stETH through the ERC20 chain.

Is Identity Verification required to participate in ETH 2.0 Liquid Staking?

Yes, similar to other Bybit Earn products, a minimum of Identity Verification Lv.1 is required to participate in ETH 2.0 Liquid Staking.

What are the maximum and minimum ETH stake amounts to stake ETH for stETH?

To stake ETH for stETH, the minimum staking amount is 0.1 ETH and the maximum is 5,000 ETH.

What are the maximum and minimum ETH redemption amounts to redeem stETH for ETH?

The minimum and maximum redemption amount per order is 0.01 stETH and 1,000 stETH. There is no limit on how many redemption orders can be submitted. However, please note that each order may have a different distribution date. 

How is the yield calculated?

Bybit calculates the yield based on each user's share of the stETH staked in its overall stETH pool. 

Does transferring my stETH from Bybit account to Bybit Wallet (Web3) count as a withdrawal?

Yes, transferring your stETH from your Bybit account to your Bybit Wallet (Web3) is considered a withdrawal. 

Does transferring my stETH out via Internal Transfer count as a withdrawal?

No, transferring your stETH out via Internal Transfer does not consider a withdrawal. Although it does not disqualify you from receiving the yield,  it will still affect the stETH snapshot results on your account. 

Does transferring my stETH to my Subaccount count as a withdrawal? 

No, transferring your stETH to your Subaccount does not count as a withdrawal. Although it does not disqualify you from receiving the yield,  it will still affect the stETH snapshot results on your account. 

What is the highest APR I can earn?

The APR fluctuates on a daily basis, and the highest APR is around 6%.

How will the yields (stETH) be distributed?

Your yield will be distributed to your Funding Account at 6:00 UTC the next day on a daily basis. You can check your yield here.

Will I be able to redeem stETH for ETH at a 1:1 ratio?

Yes, you can redeem your stETH for ETH at a 1:1 ratio from ETH 2.0 Liquid Staking page. Please note that the redemption may take at least 5-9 days or more if there is congestion on Lido or Ethereum network. 

Can I withdraw my stETH?

Yes, you can withdraw your stETH from Bybit to your own wallet.  For more information, please click here.

 

Please note that any withdrawals of stETH made within the last 24 hours will disqualify you from receiving the yield distribution for that day.

Can I only redeem the initial amount of stETH staked in ETH 2.0 Liquid Staking for ETH?

No, all available stETH in your Bybit account can be redeemed and minted into ETH using the Redeem features on ETH 2.0 Liquid Staking.

Can I cancel my staking or redemption after the order submission is successful?

No, you are not able to cancel your order once submitted. However, you can stake or redeem your ETH via ETH 2.0 Liquid Staking anytime again.

Do Subaccounts support ETH 2.0 Liquid Staking?

No, Subaccounts do not support ETH 2.0 Liquid Staking. However, the stETH amount held in your subaccounts will be included in the hourly snapshots.