It started with a tip in a tweet
I remember reading about Ethereum 2.0 staking when it was announced last year. You needed 32 ETH, which is nearly $64k in today’s money, to do it — well out of reach for me, even then when ETH was only $700 or whatever it was at the time.
Leave it to the community to come up with solutions, though. Ankr, Kraken, and others offered the opportunity to stake ETH quantities as little as 0.1. This was perfect for me — I promptly staked my 1 ETH with Ankr, and I was given an ankrETH in return.
The cool thing about staking with Ankr is that the rewards accumulate, and you redeem your staked ETH plus the rewards when you exchange the ankrETH back to Ankr after the Ethereum 2.0 locking phase is over. It also means you can exchange the token, so if I suddenly started feeling bad about staking ETH, I’m not locked in the same way as if I’d done it officially with Ethereum. This proved to a really, really good thing for me.
Earlier this week, I was scrolling through my Twitter feed. I saw this message from Guarda Wallet, a company that I’ve written about previously for staking both Harmony ONE and Cardano ADA tokens:
I was immediately curious — I hopped over to Uniswap and checked the exchange rate. Sure enough, 1 ETH was trading for 1.60 GETH. Wow — mind blown. It felt a little too good to be true, and I wanted to do a little more research before committing. So, I got to work.
You can see step 1 of my research on the tweet itself. I asked Guarda why the value of GETH was so low compared to ETH, and they promptly fired back a 5-tweet reply explaining the history of GETH and why the market varies, along with a note about wanting to make their customers aware when a rare opportunity presents itself.
Okay, this was still sounding pretty good. I looked up GETH on both CoinMarketCap and CoinGecko, and it all felt very suspicious. It was only a part of 5 watchlists on CMC, and it had just 17 likes on CG. The trading volume was also insanely low.
So, the next thing I did was to open a support ticket through my Guarda wallet. In the ticket, I raised the potential of a GETH scam that they were promoting via their Twitter account and asked if they could confirm the GETH token’s contract address, which isn’t found anywhere in the Guarda documentation.
Once again, I received a prompt response from the Guarda team along with the GETH token contract address:
Alright then. At this point, I decided to take the plunge. I went over to SnowSwap, where I had staked my ankrETH, and withdrew from their Eth2 liquidity pool. I checked exchange rates and found that WETH had a more favorable GETH exchange rate on Uniswap, so I elected to withdraw that instead of the ankrETH that I had originally deposited.
With WETH in-wallet, I headed to Uniswap and swapped it to GETH. Magically, the 1 ETH that I started with had been transformed into 1.47 GETH.
I logged into Guarda and imported my Ethereum wallet. Without any additional steps, the GETH was showing as staked ETH:
Additionally, as you can see in the screenshot, the next reward distribution will occur on May 1, 2021. That’s part of the deal when you stake with Guarda — they distribute rewards they earn to GETH holders each month.
The final step in my journey was to visit Guarda’s Telegram community to ask if need to do anything else to receive rewards. Once again, my question was answered promptly — and I was assured that I didn’t need to do anything else. I just need to hold onto my GETH to collect rewards.
I was already enjoying Guarda for staking ONE, ADA, and ATOM tokens, and I feel like I just hit the lottery with this swap. At the time I’m writing this, it looks like GETH has regained a lot of its value against ETH, and the exchange rate is not nearly as favorable. Still, getting an 18% bonus on your ETH isn’t too shabby…
Now that I’m a GETH holder, it’s great to see that the value has rebounded & recovered. I feel even better about making the move! If you’re looking to make a similar move, keep an eye on the price of GETH at CoinGecko. If Ethereum starts to surge, I wouldn’t be surprised to see the GETH drop price again, and that’s your chance to make the same move.
Thanks for taking the time to read about my experience. All the usual disclaimers apply. Be careful about making swaps on and know what you’re doing. When you hold GETH, you aren’t locked in. You can trade it away on Uniswap at any point. But, if you keep holding it, you’ll receive monthly rewards and be able to exchange it 1:1 when the next phase of Ethereum 2.0 is reached.
This article was originally published on This Crypto Life on April 9, 2021.
Lead image by Alvin Lenin on Unsplash
