Tuesday, February 18, 2025

Dinero Launches flrETH: A Flare-Native ETH Liquid Staking Solution

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KEY TAKEAWAYS

  • Dinero launches flrETH, enabling Ethereum liquid staking on the Flare network.
  • Users can bridge ETH to flrETH and engage in DeFi activities without leaving Flare.
  • flrETH simplifies staking by allowing users to earn rewards without running validators.
  • The solution enhances Flare’s ecosystem by maximizing yield opportunities for ETH stakers.

Dinero has announced the launch of flrETH, a Flare-native Ethereum (ETH) liquid staking solution. This new offering allows users to earn ETH staking yields directly on the Flare network. The announcement was made here.

Starting today, users can bridge ETH as flrETH or stake already-bridged ETH for flrETH. In the near future, users will also be able to swap tokens for flrETH on SparkDEX and participate in incentivized pools on the same platform. This development allows users to engage in these activities without leaving the Flare network.

Understanding ETH Liquid Staking

Liquid staking is a process where users can earn staking rewards without the need to run a validator. In the Ethereum network, ETH is locked into validators to secure the network, earning rewards in return. However, running a validator can be complex and requires locking up ETH.

ETH liquid staking protocols, such as flrETH, simplify this process. Users deposit ETH and receive a receipt token, like flrETH, which automatically earns staking yield and Miner Extractable Value (MEV) tips. This allows users to keep their ETH liquid while still benefiting from staking rewards.

How flrETH Works

The flrETH dapp, developed by Dinero, facilitates the acquisition of flrETH. Users deposit ETH into the apxETH vault, a staking protocol on the Ethereum mainnet, via Dinero’s validators. This generates flrETH, which is then bridged to Flare using LayerZero’s General Message Passing (GMP). The original ETH remains staked on the Ethereum chain, accruing rewards and MEV tips.

Users can utilize their flrETH for various decentralized finance (DeFi) activities on Flare. When they wish to unstake, they can bridge flrETH back to Ethereum to claim their original ETH plus any accrued rewards. Additionally, flrETH can be directly acquired on SparkDEX and other participating decentralized exchanges (DEXs).

Benefits to the Flare Ecosystem

flrETH offers several benefits to the Flare ecosystem. It allows Flare users to gain exposure to ETH without sacrificing yield opportunities. ETH stakers can maximize their yield by swapping flrETH for other tokens on Flare and using them for various DeFi activities, such as lending and liquidity provision.

In the long term, flrETH could be used as collateral by FAssets agents and potentially included in Flare’s FAssets collateral mix. This flexibility enhances network participation and asset leveraging across multiple platforms.


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Neel Kapoor
Neel Kapoor
Neel Kapoor is a dedicated cryptocurrency enthusiast and blockchain expert at Coinsholder.com. With over a decade of experience, Neel offers insightful analysis and commentary on the latest trends and innovations in the crypto space. His clear and concise writing makes complex topics accessible to all readers.

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