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I put a significant amount of ETH in Guarda Wallet for Staking. Here is why I would advise against it

So i put a significant portion of my ETH into the Guarda wallet and decided to stake it there. They claimed ~7% APY However, after the first rewards cycle I received less than 4.5% APY and now I am trying to contact customer service without a lot of luck. To top off things I received GETH (Guarded ETH) as collateral which the Guarda website can be swapped for ETH at a 1:1 ratio, BUT I tried swapping 1 and its more like 1:3/4 ratio. I am by no means a crypto ninja so maybe I’m missing something here, but it seems this is a bunk deal. Also, I looked it up. The service is in complete control of when to release your ETH2 back to you. Anyone else have experience with Guarda? Am I just dumb?

What do you think?

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9 Comments

  1. You say they’re in control of when to release ETH2 back to you, but I was unaware the withdrawals mechanism had even been implemented yet? At best you could pull GETH out but I thought all validators couldn’t withdraw until the mechanism is implemented….

  2. As I understand, these APYs are variable and the number you get marketed is an average. Hopefully you’ll get some higher returns over time. Sucks about the trade back ratio. I have not tried staking my Eth yet I’ve been a little hesitant because of stuff like this.

  3. Honest feedback? It is extremely dangerous (for not say naive) to give your ETH for some fake coins and not committed APY. Crypto principle remains intact: “not your keys, not your crypto”. Can’t recommend anything but to try to withdraw your cash ASAP and prevent further losses

  4. If you’re staking solo the current apy is ~6%, I assume they take a cut for the service the provide so that can explain discrepancy below the 6%. That being said, ETH on the beaconchain is locked up until further notice. If they’re offering an internal coin (as you called it GETH), they (or whomever) is buying and trading that coin understands that the real ETH collateral is locked for a long time, this changes the value of GETH. Why would someone give their real ETH to you for your locked (until farther notice) ETH at a 1:1 rate? Sounds like a bad deal. Liquidity has value. In contrary, I would give you .75 ETH right now for 1 GETH which will become unlocked within the next year (hopefully). That is a 25% ROI which is a better deal than the 6% I’d get staking my ETH. Its all economics.

  5. Looks like their cut is a 9.99% fee of the rewards. That means they take 10% of what you are making, but currently what you are making is going down as more people stake. You can see more info about the APR everyone is getting right now here: https://launchpad.ethereum.org/en/ (scroll down to staking and rewards)

    As for you trying to get your ETH back, since all staked ETH is locked up right now, the only way you can get out is by selling your spot to someone else, and since they can just stake more ETH at a 1:1 value, if they are buying your stake, they want a discount, so the market value of staked ETH tokens is regularly less than 1:1, and less popular services will likely be further from a 1:1 exchange rate than the more popular ones. So you can get out now and pay a penalty essentially, or you can wait for withdrawals to be enabled and get your ETH back that way.

    Hopefully that made sense.

  6. Yep, without withdrawal keys, you will have to rely on honesty of Guarda service. A bit bummer, but there is nothing you can do right now apart from praying on the daily basis. I think you should be alright, they will fuck you over with conversion as u said and let u go.

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