Staked ETH: What It Is, How It Works, and Where to Find Real Value
When you stake ETH, you’re not just holding cryptocurrency—you’re helping run the Ethereum network. Staked ETH, Ethereum tokens locked in a smart contract to validate transactions and earn rewards under Proof of Stake. Also known as ETH staking, it’s how Ethereum replaced mining with energy-efficient consensus since the Merge in 2022. Instead of powerful GPUs solving puzzles, validators use their own ETH as collateral to propose and confirm blocks. In return, they get paid in new ETH—similar to earning interest, but tied directly to network security.
Staked ETH isn’t a coin you buy—it’s a state your ETH enters. You can stake directly by locking 32 ETH in the official deposit contract, or use a service like Lido or Rocket Pool to pool smaller amounts. These services give you liquid staking tokens (like stETH or rETH) that keep earning rewards while letting you trade or use them in DeFi. That’s the big shift: Proof of Stake, the consensus mechanism that replaced mining on Ethereum, relying on staked assets instead of computational power turned ETH from a speculative asset into a yield-bearing one. And because staking rewards come from transaction fees and new issuance, your returns are tied to real network activity—not hype.
But staking isn’t risk-free. If your validator goes offline or misbehaves, you can lose a portion of your ETH—this is called slashing. And if you use a third-party service, you’re trusting them with your funds. That’s why many users check whether the platform has been audited, how they handle withdrawals, and if they’re transparent about fees. DeFi yield, the returns earned by locking crypto in protocols like lending markets or liquidity pools often looks higher than staking, but comes with smart contract risks. Staked ETH, by contrast, runs on Ethereum’s core protocol—making it one of the safest ways to earn passive income in crypto.
What you’ll find below are real guides and reviews about staked ETH—how to start, which platforms actually deliver, what happened to early stakers after the Shanghai upgrade, and why some people lost money chasing fake staking offers. No theory. No fluff. Just what works, what doesn’t, and what to watch out for in 2025.
What is StakeWise Staked ETH (osETH)? A Simple Guide to Liquid Staking on Ethereum
osETH is a liquid staking token from StakeWise that lets you earn Ethereum staking rewards while keeping your assets liquid. Unlike stETH, it's overcollateralized to protect you from slashing risks.
- December 13 2024
- Terri DeLange
- 20 Comments