FAQ

Common Frequently Asked Questions

What is ETH Staking?

ETH staking is a process in which Ethereum (ETH) holders can lock up their ETH to receive rewards in the form of additional ETH.

Once the ETH is staked or locked in a smart contract, the ETH will become part of Hord’s nodes. Nodes validate transactions on the Ethereum network and earn transaction fees.

Typically staking requires a minimum of 32 ETH, technical know-how, and a dedicated computer that is connected to the internet. Most ETH stakers earn an average of 4% APR.

Hord ETH staking requires no minimum and offers a better APR by combining ETH staking with MEV rewards.

Why should users stake ETH via Hord?

We offer lower fees than competing pools. It’s also risky for the Ethereum ecosystem to have a large portion of the ETH to be staked in one or two platforms. More staking options are needed to keep Ethereum truly decentralized and healthy.

How is the APR calculated, and where are the rewards coming from?

To calculate the APR, we take the last 30-day increase of the hETH price - which is taken according to (the total amount of users' ETH in validators & rewards) divided by the number of hETH minted. The rewards come from the block rewards issued by the Ethereum network for staking ETH combined with additional MEV rewards. These rewards are redistributed to the pool and grant hETH (that represents the amount of ETH + rewards in the pool) its value.

Check our APR Guide to learn more about it.

How is Hord’s ETH Staking Pool Different?

Hord has taken a unique approach to ETH staking pools. Unlike other platforms, Hord combines ETH staking rewards with MEV boosts, auto-compounding rewards, and additional HORD rewards. By combining different rewards, Hord can offer stakers the highest APRs seen in the market. Whenever staking users receive hETH, hETH’s value is expected to be greater than ETH and will constantly increase.

What is hETH?

hETH is Hord's staked ETH liquid token variant. When a user stakes ETH, they receive hETH in return.

hETH is a token combining the value of a user’s staked ETH and rewards. hETH is minted upon deposit and burned when redeemed. The value of hETH combines the ETH staked with rewards. As such, its value is not pegged to ETH but is expected to be greater than it and will constantly increase.

Hord’s hETH token is fully liquid, meaning you can use it like you would ETH. Users can trade, sell, redeem, use in DeFi, and invest hETH as they want.

Where can stakers trade their hETH?

Users can trade hETH freely on Uniswap. Direct withdrawals will be implemented in the summer of 2023.

What is a decentralized Ethereum staking pool?

A decentralized Ethereum staking pool is a network of nodes that pool their computing resources to validate transactions on the Ethereum network. Validating transactions allows users to earn rewards for staking their Ethereum.

What makes Hord staking different from other ETH staking platforms?

ETH staking platforms differ in terms of the type of rewards they offer, the fees associated with staking, the user experience, and the security measures they employ. Hord is a secure and user-friendly staking platform that enables users to stake their ETH and receive rewards easily. Hord also offers competitive rewards and lower fees, which help users maximize their staking rewards.

What happens to the staked ETH?

Staking is the process of locking up Ethereum (ETH) tokens to validate transactions on the Ethereum blockchain to earn rewards. The more ETH you lock up, the more rewards you will receive. Users receive hETH which represents the ETH they have staked and rewards.

What is MEV or Maximal Extractable Value and how does it work?

Maximal Extractable Value (MEV) is a term that describes the maximum amount of value nodes can extract from blocks in the Ethereum network. Through front running or other forms of transaction reordering, validators can extract the maximum value and earn higher rewards.

What are the benefits of joining a decentralized Ethereum staking pool?

Joining a decentralized Ethereum staking pool has several benefits. Firstly, you can stake any amount you’d like without restrictions. You also benefit from the pool’s scale, as all the nodes in the pool work together to earn rewards. Staking with Hord Staking Pools is also more accessible, with a user-friendly interface that makes staking and withdrawals easy.

Is it possible to keep the crypto in my wallet when staking ETH with Hord staking?

No, it is not possible to keep the crypto in your wallet when staking ETH with Hord Staking. When you stake ETH with Hord, your ETH is moved to a secure smart contract, where it remains until you decide to unstake it. In exchange for staking ETH with Hord, users receive a token called hETH which represents their staked ETH and rewards.

What is liquid staking?

Liquid staking is a way to stake tokens using a 3rd party provider. With liquid staking, tokens are deposited, staked, and a tokenized receipt is issued that can be redeemed for staked tokens. The receipt represents staked tokens that can be traded or used as collateral.

At Hord, the liquid token is hETH which represents both the user’s staked ETH and rewards earned. hETH can be traded and used across the DeFi ecosystem.

What is the difference between self-staking and liquid staking?

Self-staking is a process of locking up one’s own ETH to receive rewards in return. Liquid staking, on the other hand, involves pooling ETH with other users to receive rewards. The main difference between the two is that self-staking requires a minimum of 32 ETH, some technical knowledge, and maintaining validator up-time. With liquid staking, funds are pooled with other users and Hord maintains the validator and technical aspects.

How do I unstake my ETH?

hETH can be swapped for ETH by trading it on a popular DEX like UniSwap. Direct withdrawals will be implemented soon.

What is the Hord ETH Staking APR?

The Hord ETH Staking APR may fluctuate due to various reasons including market conditions. The exact rate can be found on the Hord website. The APR displayed APR reflects a rolling 7-day average of the return users can expect to make over a year.