Introducing flrETH: A Flare-Native ETH Liquid Staking Solution

Today, we’re excited to announce flrETH—a Flare-native ETH liquid staking solution, built by Dinero, that lets users earn ETH staking yield directly on Flare.

Starting today, you can:

Bridge ETH as flrETH
Stake already-bridged ETH for flrETH

Coming very soon:

Swap tokens for flrETH on SparkDEX
Participate in incentivized pools on SparkDEX

All without leaving Flare. Developers can also begin integrating flrETH into the ecosystem, offering ETH staking on Flare for the first time. Start staking: https://flare.dinero.xyz

What is ETH Liquid Staking?

Many of you are familiar with liquid staking, thanks to Sceptre’s FLR staking solution, but ETH liquid staking might be new to some. Here’s a quick overview.

Ethereum network is secured through staking, where ETH is locked into validators. These validators ensure the network’s security, and in return, they earn ETH rewards. However, running a validator can be complex and requires locking up your ETH. That’s where liquid staking comes in.

ETH liquid staking protocols like flrETH allow users to earn staking rewards without the hassle of running a validator. When you deposit ETH, you receive a receipt token (e.g., flrETH), which automatically earns staking yield and Miner Extractable Value (MEV) tips, with the rewards realized upon withdrawal. This allows you to keep your ETH liquid while still benefiting from staking rewards. A win-win!

Who are Dinero?

flrETH was built by the Dinero team, experts in the Ethereum ecosystem. Dinero runs its own liquid staking protocol, pxETH, which powers flrETH behind the scenes. Now, Flare users can earn ETH staking rewards without leaving the network or dealing with Ethereum validators.

Dinero UI

How does flrETH work?

The flrETH dapp, by Dinero, makes the process of acquiring flrETH simple for the user. Refer to our flrETH Guide for step-by-step instructions on how to stake ETH to Flare.

flrETH User Guide: https://flare.network/flreth-user-guide/

To provide a more in-depth look at how flrETH works behind the scenes, we break it down below:

A user deposits ETH into the apxETH vault, a staking protocol on the Ethereum mainnet via Dinero’s validators.
Depositing ETH to apxETH will generate flrETH.
flrETH is then bridged to Flare using LayerZero’s GMP, while the original ETH remains staked on the Ethereum chain accruing both staking rewards and MEV tips.
The user can then use their newly acquired flrETH for a range of DeFi activities on Flare.
When a user wants to unstake and claim their ETH, they can bridge flrETH back to Ethereum and claim their original ETH plus any accrued rewards.

Users will also have the option to directly acquire flrETH on SparkDEX and other participating DEXs.

How does flrETH benefit the Flare ecosystem?

In addition to accruing ETH staking rewards and MEV tips, flrETH provides several other benefits to Flare. Flare users gain exposure to ETH without forgoing yield opportunities on Flare. ETH stakers can maximize their yield by swapping flrETH to other tokens on Flare (once pools are live) and using those tokens for a range of DeFi activities such as lending, borrowing, and liquidity provision. For retail users, it also removes the technical and financial barriers associated with running validators.

In the longer term, FAssets agents may be able to use flrETH as collateral. Eventually, flrETH could also be included in Flare’s FAssets collateral mix, further broadening the token’s use case in the ecosystem. The new level of flexibility and opportunities that flrETH enables opens doors for greater network participation and the leveraging of assets across multiple platforms.