ETHGas
Governance & Staking
Governance & Staking
  • Who Are Gas Markets For?
  • Core Users & Incentives
  • Staking Dynamics
    • Direct Users
    • Indirect Users
  • How to Stake with ETHGas
  • View Main FAQ Docs
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  • Direct Users, Reduced Transaction Fees, and Increased APYs
  • Gas Buyers (Traders)
  • Gas Sellers (Validators)
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  1. Staking Dynamics

Direct Users

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Last updated 2 months ago

Direct Users, Reduced Transaction Fees, and Increased APYs

Direct users are those that interface with the ETHGas protocol namely the Gas Buyers (i.e. Traders) , and the Gas Sellers (i.e. Validators). In these cases, we look at staking as a mechanism to either reduce fees or increase APYs.

Gas Buyers (Traders)

Gas Buyers invariably want lower transaction fees. Depending on what they stake, and how long they stake, they can lower these fees significantly. They can:

  • Stake ETH, and pay less transaction fees

  • Stake $GASS, and pay less transaction fees

  • Stake longer, and pay less transaction fees

Gas Sellers (Validators)

Validators want higher APYs. The Validator landscape is highly competitive having an extreme sensitivity to APYs. If a Node has regular outages or otherwise sees a 10bps drop in yield, TVLs will fall considerably. Through Staking with ETHGas, Validators are now able to enhance their APYs vis-a-vis other Validators. They can:

  • Stake ETH, less transaction fees, earn higher APYs

  • Stake $GASS, pay less transaction fees, earn higher APYs

  • Stake longer, pay less transaction fees, earn higher APYs

  • Stake a relatively higher proportion of ETH vs others, pay less transaction fees, earn higher APYs

See for example calculations

this spreadsheet