Ethereum 2.0 Validators Are Making 3.2% Compounded Yearly Interest

[MUGNIA]

The Ethereum 2.0 Beacon Chain launched in December, and network validators are making a tidy sum securing the network. But is it the best offer going?

So far, a significant portion of the total Ethereum supply is locked in the deposit contract.

According to Flipside Crypto, a business intelligence firm for blockchain organizations, validators are earning 0.002792 Ether per day. That’s approximately $1.69, according to the current market price.

Crunching the Numbers
To qualify for a validator node, a user must stake 32 ETH in the staking contract. So, assuming a node has 32 ETH and is receiving 0.002792 Ether per day as its reward, it is generating 0.008725% in daily interest.

When compounded across a year, the annual return rate equals approximately 3.2% for each node (holding 32 ETH minimum).

Celsius, a lending platform that combines centralized and decentralized loans, currently offers a 5.5% yearly interest rate on ETH. The platform offers a 7.21% rate if you agree to receive your interest in its native CEL cryptocurrency.

At the current rate, if a user lends 32 ETH on Celsius rather than the Ethereum 2.0 chain, the user would theoretically make an additional 0.736 ETH, worth $445 at the current Ether price.

In addition, Ethereum 2.0 users will not be able to access their staked funds until phase 2 of the migration occurs. This could take an additional two years, according to MyEtherWallet CEO Kosala Hemachandra.

more : https://beincrypto.com/ethereum-2-0-validators-are-making-3-2-compounded-yearly-interest/