Staking powered by Kiln is available on Enzyme for asset managers
We are delighted to announce our new product integration on Enzyme. This integration lets asset managers access Kiln’s enterprise-grade ETH native staking to earn around 7.5%* GRR** rewards on ETH deposits.
Enzyme is the DeFi Operating System — enabling assets managers to plug and play with dozens of protocols and hundreds of tokens. So they can build, scale and monetize an investment strategy that suits their needs.
Staking consists in securing Proof-of-Stake blockchains, and earning a yield for doing so. It is the most natural yield feature in crypto as the value originates from the blockchain native currency inflation and a share of transaction fees. There is no risk of default or bankruptcy as the counterparty is the protocol itself.
According to Messari, staking is the safest and most predictable yield in crypto:
“It can be argued that staking is the closest thing we can get to a blockchain network’s “risk-free rate.””
This is why treasury managers and other financial experts are looking to staking as a new opportunity for their institutional clients.
Why should asset managers, institutions or DAOs stake part of their treasury assets with Kiln on Enzyme?
Sharing common values such as transparency, Kiln On-Chain brings trustless native staking to Enzyme, allowing asset-managers to diversify their strategies and benefit from forecastable yields while minimizing counterparty risks.
Stake assets in 1-click: Enzyme’s dashboard makes it seamless to stake ETH while keeping custody of their funds in your custodian.
Avoiding protocol inflation, benefit from it. The opportunity cost of not staking crypto is equal to protocol inflation.
Access enterprise-grade service for institutions. Kiln’s SLAs guarantee 99% of the maximum theoretically possible rewards.
Thanks to this new product launch, institutions or DAOs using Enzyme are able to provide an easy-to-use native staking solution to their customers. While for vault managers, they will be able to offer their shareholders direct exposure to staked ETH. So it will help multiple players to bring new safe yield opportunities to them and their users.
How does it work?
Enzyme users holding 32 ETH or more can now stake ETH by following these steps. It should take less than 5 minutes to complete the first transaction. Please note that withdrawals will only be available in a future Ethereum upgrade:
Click the actions toggle in the positions table and select ‘Stake WETH’.
Select the desired amount of WETH and press ‘Stake’.
WETH is automatically unwrapped to ETH and sent to Kiln Staking Contract to be staked on validators.
After staking, you can manage the position & claim fees at any time.
Note: Any ETH deposited into a vault is converted to WETH, since wrapped tokens have greater functionality and flexibility across the DeFi ecosystem. WETH is forever redeemable 1:1 for ETH.
Why has Enzyme decided to partner with Kiln?
With more than a 2.1% share of all ETH staked and heavy involvement within the community, Kiln has a strong track record running Ethereum validator nodes. Our On-chain solution has multiple benefits such as:
Stake with a simple transfer transaction thanks to our audited smart contract.
Earn commission on rewards automatically
Get in touch with the Enzyme team to know more about this new product.
If you are interested in whitelabeling staking functionality into your offering, contact our team at Kiln: email@example.com
Enzyme is a radically transparent, non-custodial DeFi infrastructure purpose built to help manage crypto assets and interact with DeFi protocols.
Enzyme enables asset managers, treasury managers, DAOs and organisations to fully automate the creation of an on-chain investment vault. Once created, vault owners can build custom strategies and encode clear operational rules and objectives, all of which function in a completely transparent manner.
From within the vault, Enzyme connects with dozens of DeFi protocols at smart-contract level, meaning asset managers can build composable strategies that harness the full potential of DeFi.
This includes strategies such as:
Staking via Kiln
Earning yield via Yearn Finance, Idle Finance, Convex Finance and Maple Finance
Collateralised lending and borrowing via Aave and Compound Uncollateralized lending via protocols like Maple and Goldfinch
Accessing additional rewards from yield farming programs on any protocol
Trading with the likes of Paraswap,0x, Uniswap, Curve, etc
Providing liquidity to AMMs and actively managing it via protocols such as Curve Finance and Uniswap v2 & v3
Participating in governance with your vault’s tokens
*Source: Rated, last 30d average GRR of Kiln validators as of December 1st 2022. The staking reward rate will fluctuate over time based on many factors, past performance is not necessarily indicative of future returns . See this post for more details on expected future yields.
**GRR stands for Gross Reward Rate, a term commonly used in staking. It represents the total rewards earned by staking participants before any fees or deductions are taken into account.