Daniel Fernandes on Warpcast

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https://warpcast.com/~/channel/walletbeat

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Some wallets use the label "staking" to refer to the act of handing over your coins to a custodian who will turn around and stake them. Is this label correct? Staking may have been the user's goal, but the "handing over the coins" part feels too critical to not be reflected in the action's label. Am I off-base here?

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Daniel Fernandes

This is true, but even as a solo home staker maxi, I can acknowledge that some dependencies are illegible to me. Yes, it's basically UI sugar hiding a swap. But I'm not as offended b/c staking always means 'something is at stake' i.e. you are taking on some risk to get some reward. The only question is what & where do the risks come from?

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Daniel Fernandes

For example, I use @ethnimbus, Besu, and @dappnode. If any of those have a critical bug, my keys could be leaked and/or I could be slashed. I can't read much less understand every line of code, so I'm trusting others to be careful with their coding & testing. In a sense, "I'm handing over the coins" insofar as I have substantive trust dependencies external to myself. If I swap ETH to stETH or cbETH, or rETH: I'm trusting Coinbase, Lido, and Rocketpool organizationally as corporate/DAO entities. Wallets primarily through orderflow/advertising, so I don't bemoan Coinbase Wallet offering users to 'stake' by swapping to cbETH. But I would complain if it's just sending the money to Justin Sun's personal staking farm.

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