ConsenSys Codefi is launching an Ethereum 2.0 staking-as-a-service platform with institutional functionality for exchanges, custodians, funds, wallets and other potential customers. Today, Codefi revealed its first batch of Pilot Program participants, designed to incorporate feedback and feature requests while designing and building the Codefi Staking API ahead of the Ethereum 2.0 launch. Through the completion of the pilot program, partners gain a deeper understanding of Ethereum 2.0 and have the opportunity to be first to market in providing their customers with Ethereum 2.0 staking capabilities. 

Codefi Staking is built on top of a trusted software stack built by ConsenSys. The mission is to provide a white-label institutional grade API, with easy and efficient access to the Ethereum 2.0 network to enable enterprises to safely and profitably engage with the next phase of Ethereum’s evolution.

Preparing for a Protocol Upgrade

With the first phase expected to launch in 2020, Ethereum 2.0 marks a long-anticipated upgrade to the Ethereum public mainnet. The launch of Ethereum 2.0 is especially significant compared to past upgrades because of the implementation of a Proof of Stake consensus mechanism, moving the network away from its existing Proof of Work architecture. With Proof of Stake, a network of validators effectively place a security deposit of 32 ETH in special accounts on the network, as a guarantee they will follow and enforce the network rules. Ethereum 2.0 will remain decentralized, and anyone willing to stake 32 ETH can become a validator (a minimum of 16,384 Validators staking 524,288 Eth are needed for Ethereum 2.0 to launch).

For people who hold ETH, Proof of Stake marks a more inclusive way to maintain the security of the Ethereum 2.0 network compared to Proof of Work, along with comparatively high rewards for participants. Yet for the average crypto enthusiast, staking can be complex; hence, platforms like exchanges, funds, and wallets offering staking will be differentiated from their competitors in lowering the barriers to participation in staking networks.

“Some of the risks associated with running your own validator include theft or loss of withdrawal keys, incorrect transfer of funds to the Eth 2 deposit contract, and not to mention hardware or internet connectivity failures which result in a loss of validator rewards. With ConsenSys Codefi, validator keys are held in a secure vault with online signing capability, and there will be multiple layers of gatekeepers validating transactions preventing unauthorized usage. We know the importance of onboarding as many validators to Ethereum 2.0, and for that reason have built a turnkey solution for enabling large exchanges and institutional crypto funds to have an always-on and dependable access point to stake the ETH they hold for their customers,” said Tim Lowe, Product Lead of Codefi Staking. 

Codefi Staking Pilot Program

Binance, Crypto.com, DARMA Capital, Huobi Wallet, Matrixport, and Trustology are the first companies to join the Codefi Staking Pilot Program.

“With staking on Binance, users can receive staking rewards without needing to set up nodes, or worrying about minimum staking amounts, time lengths, or any catches. Users deserve the rewards that their coins can earn them. With the eventual launch of Ethereum 2.0, we are excited to support staking for all of our ETH holders on Binance,” said Changpeng Zhao (CZ), CEO at Binance.

“Ethereum’s upgrade to proof-of-stake will be a pivotal moment for both Ethereum and the Web 3.0 ecosystem. We look forward to teaming with ConsenSys as they support the technological progression and DARMA addresses the financial impact of ETH locked assets and rewards staking through staking-swaps and collateralization,” said James Slazas, CEO of DARMA Capital.

Alex Batlin, “We believe that ETH2.0 represents a step change for decentralised finance, both in terms of performance and scalability, that will spearhead the long awaited mass adoption, along with the opportunity to earn interest on ETH via staking. ETH2.0 brings to the forefront the need for bank-grade secure, but lightening fast, custody solutions.  Thanks to our custom HSM firmware in HSM, we are able to lead the market in offering a fast and scalable custodial wallet solution both for investors looking to stake on ETH2.0, and for validators involved in staking operations.”

ConsenSys Codefi Offers Flexible Features and Services

Codefi Staking will offer direct API integration or a white-labeled UI, both providing detailed metrics and reporting whilst ensuring a minimum 99% uptime for validators confirming blocks on Ethereum 2.0. And importantly, there will be 24/7 support and a professional customer service team available. 

Codefi Staking was built using PegaSys Teku, the Ethereum 2.0 client empowering businesses to stake on the next evolution of the Ethereum network. Written in Java and maintained by the same team behind Hyperledger Besu, Teku is making it easier to bring staking services to businesses. Codefi Staking will also support other Eth2 clients to maintain flexibility and 99% uptime for validators, as the development phases of Eth2 further develop. 

Early Adopter Program 

Codefi is accepting  Early Adopter customers to partner with prior to the Ethereum 2.0 Beacon Chain launch. Early Adopters stay ahead of the competition with a low risk, low barrier to entry way to provide feedback on the service as well as learn directly from Eth2 teams building the next generation of Ethereum and begin staking ETH. To sign up, click here.