Exchange Liquid Staking
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Written by Support Specialist
Updated over a week ago

1. What is Liquid Staking?

Liquid staking is an additional feature to on-chain Staking, where users can wrap their staked virtual assets and receive a receipt token that continues to benefit from accruing staking rewards. This provides users with access to their funds while their virtual assets are still staked. Crypto.com currently offers liquid staking for ETH. Read the whitepaper here.

2. What is CDCETH?

Crypto.com Staked ETH (CDCETH) is a receipt token representing your staked Ether (ETH) and any accrued staking rewards.

The conversion rate represents the rate at which Crypto.com will wrap your staked ETH to CDCETH or unwrap your CDCETH to staked ETH. We do not charge any fees for both the wrapping and unwrapping process.

3. How do I wrap and unwrap CDCETH?

Staked ETH can only be wrapped for CDCETH when your staking transaction status has changed to ‘Staked’ after the ‘Activation’ period ends.

Your CDCETH balance is reflected on your Wallet Balance. CDCETH can be unwrapped to staked ETH at any time based on the prevailing conversion rate.

The process of wrapping and unwrapping CDCETH is instantaneous, and as mentioned above, Crypto.com does not charge any fees to facilitate either process.

4. What is the conversion rate for wrapping and unwrapping CDCETH?

The conversion rate determines:

  • The number of CDCETH you will receive when you wrap staked ETH

  • The number of staked ETH you will receive when you unwrap CDCETH

The conversion rate changes as a result of the rewards earned on the staked ETH by CDCETH holders. As the conversion rate accounts for staked ETH and the accrued staking rewards since the introduction of CDCETH, it is likely to increase over time.*

The conversion rate will be displayed when you initiate a new request to wrap staked ETH or unwrap CDCETH.*

*Please read the on-chain Staking Terms and Conditions carefully in relation to the risks of ‘slashing’, which may occur when the transaction validator representing those assets incorrectly validates or fails to validate a transaction. Slashing typically involves the reduction or confiscation of a validator’s assets as a consequence of their improper actions. As a result, validation rewards may not be paid out, and the staked virtual assets might also be lost and/or subject to a penalty fee which can adversely impact the conversion rate. In the unlikely event that the conversion rate changes by more than 5 bps after you have initiated wrapping and unwrapping, your wrapping/unwrapping request may be rejected.

5. Will I receive rewards by holding CDCETH? How does it differ from holding staked ETH?

When you stake ETH on Crypto.com and hold ETH (Staked) in your account, you receive staking rewards on a regular basis based solely on the blockchain protocol. These staking rewards are credited to your available balance in ETH. However, please note that staked ETH cannot be withdrawn from your account until you have initiated an ‘Unstaking’ request and that ‘Unstaking’ request is complete.

CDCETH holders are entitled to staking rewards as well. However, the staking rewards will be reflected through the increase in the conversion rate of CDCETH to staked ETH (instead of receiving ETH rewards directly in their accounts). CDCETH holders can redeem their rewards by unwrapping their CDCETH, where they will then receive staked ETH based on the conversion rate at the point of unwrapping. Since the conversion rate changes as a result of the rewards earned, over time, the user is likely to receive more staked ETH when they unwrap their CDCETH.

6. Trading of CDCETH

CDCETH is a tradable receipt token representing your staked ETH and any accrued staking rewards. The trading of the CDCETH on Crypto.com platforms is subject to jurisdictional limitations due to potential or actual regulatory restrictions. For further information on the eligibility of CDCETH trading in your jurisdiction please contact the relevant entity of your Crypto.com Exchange.

7. How do I receive back ETH from my staked ETH?

Once your ETH is staked through Crypto.com’s on-chain Staking service, there are two ways eligible users can receive back their staked assets in ETH:

  1. Eligible users may unstake Staked Balances* by initiating an ‘Unstaking’ request and receive the equivalent amount of the native virtual asset [e.g., Unstake 1 ETH (Staked) and receive 1 ETH]. Please note that:

    1. Users may only receive their ETH after the protocol-imposed on-chain unbonding period ends.

  2. Eligible users may wrap their Staked Balances* for CDCETH at the listed conversion rate anytime.

*This refers only to Staked Balances where the staking transaction status has changed to ‘Staked’ after the ‘Activation’ period ends. It does not include assets which are under either the ‘Activating’ or ‘Unbonding’ status.

8. Liquid Staking Geo-Restrictions

Persons from the following locations and all sanctioned nations are prohibited from participating in liquid staking. Please note that users who are prohibited from on-chain Staking for certain virtual assets will not be able to participate in liquid staking as well. Crypto.com reserves the sole discretion to restrict liquid staking from certain users at any time for legal or regulatory reasons.

Country

Country Code

American Samoa

AS/ ASM

Australia

AU/ AUS

Canada

CA / CAN

Guam

GU/ GUM

Hong Kong

HK/ HKG

Kazakhstan

KZ / KAZ

Malta

MT/ MLT

Marshall Islands

MH/ MHL

Minor Outlying Islands

UMI

Northern Mariana Islands

MP/MNP

Russia

RU/ RUS

Singapore

SG/ SGP

Papua New Guinea

PG/PNG

Puerto Rico

PR/ PRI

Seychelles

SC/ SYC

South Korea

KR/ KOR

Thailand

TH/ THA

United States

US/ USA

US Virgin Islands

VI/ VIR

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