Gitcoin has been deploying blockchain technology to establish decentralized funding mechanisms that facilitate more transparent and streamlined funding of public goods. Gitcoin and Index Coop are partnering to create Gitcoin Staked ETH Index (gtcETH) to take this ambition further. The objective of a new ERC-20 token is to provide diversified exposure to the top liquid staking tokens enabling users to earn staking rewards and contribute to public goods simultaneously.
Simplifying staking in ETH
Public goods in the Ethereum ecosystem create a supportive environment for innovation and attract new users and businesses to the platform. They also help advance a decentralized internet that empowers individuals and organizations by providing a secure and accessible ecosystem. ETH, the main asset in the ecosystem, benefits from the development of public goods and network effects.
Staking is a popular method of earning a return in ETH, and decentralized protocols that offer liquid staking tokens have grown in popularity due to higher returns and lower deposit requirements. However, stakers may find it challenging to choose which protocol to entrust with their ETH and diversifying their stake across multiple protocols can be exceptionally expensive. Gitcoin Staked ETH addresses these challenges by indexing prominent liquid staking tokens into a single ERC-20 token, providing a way to passively fund public goods.