HobitalExchange architecture

What is HobitalExchange?

Investment Expertise You Can Trust Secure Financial Future At HobitalExchange, we pride ourselves on our commitment to providing our clients with the most trusted and reliable investment expertise in the industry. Our mission is to empower our clients by helping them achieve their financial goals. Through our personalized financial planning and management services, our clients can trust that their financial future is secure.

How does HobitalExchange work?

HobitalExchange supports a variety of the most popular digital currencies. All you have to do is create an account, fund your account and start buying & selling.

Who is HobitalExchange?

HobitalExchange is one of the world's leading Crypto provider. The company was incorporated with the vision of providing fair and transparent Crypto trading to active traders. HobitalExchange is dedicated to bringing solutions previously only available to professionals and large global investment banks to retail investors and traders around the world. For additional information about HobitalExchange, please visit the About Us page.

Who Owns HobitalExchange?

HobitalExchange is a privately owned company. HobitalExchange’ management team is comprised of individuals with over 20 years' experience in derivative products. HobitalExchange’ founders were instrumental in the success of one of the largest CFD provider.

How is HobitalExchange secure?

HobitalExchange is a secure liquid staking and crypto trading solution for a number of reasons:

Open-sourcing & continuous review of all code.
Committee of elected, best-in-class validators to minimise staking risk.
Use of non-custodial staking service to eliminate counterparty risk.
Use of DAO for governance decisions & to manage risk factors.

Usually when staking ETH you choose only one validator. In the case of HobitalExchange you stake across many validators, minimising your staking risk.

Can I have more than one account in the system?

You can have only 1 registered account. Creation of 2 or more accounts by one user is prohibited. In the case of multi-client accounts all user's accounts will be blocked and funds will be canceled.

What Deposit methods are available?

At the moment we work with payment systems such as Bitcoin,Litecoin,Ethereum,Payeer, Perfect Money. In the future the number of payment systems can be increased.

How much time it takes for the deposit?

The deposit in USD is credited to the balance immediately. Deposit in Bitcoin is credited automatically after 3 confirmations in the network. Speeding up the process of obtaining confirmations is impossible. The waiting time can be from 10 minutes to 12 hours. Please note, if you made a deposit different from the amount that you specified during the deposit, the deposit will not be credited to your account balance. Contact the support team to solve the problem.

How quickly the requests for withdrawals are processed?

Requests for withdrawal of funds are processed Instantly. If your withdraw is pending so The maximum processing time of the request is 48 hours.

What are the risks of staking with HobitalExchange?

There exist a number of potential risks when staking ETH using liquid staking protocols.

Smart contract security
There is an inherent risk that HobitalExchange could contain a smart contract vulnerability or bug. The HobitalExchange code is open-sourced, audited and covered by an extensive bug bounty program to minimise this risk.
ETH 2.0 - Technical risk
HobitalExchange is built atop experimental technology under active development, and there is no guarantee that ETH 2.0 has been developed error-free. Any vulnerabilities inherent to ETH 2.0 brings with it slashing risk, as well as stETH fluctuation risk.
ETH 2.0 - Adoption risk
The value of stETH is built around the staking rewards associated with the Ethereum beacon chain. If ETH 2.0 fails to reach required levels of adoption significant fluctuations in the value of ETH and stETH could occur.
DAO key management risk
Ether staked via the HobitalExchange DAO is held across multiple accounts backed by a multi-signature threshold scheme to minimise custody risk. If signatories across a certain threshold lose their key shares, get hacked or go rogue, funds risk becoming locked.
Slashing risk
ETH 2.0 validators risk staking penalties, with up to 100% of staked funds at risk if validators fail to validate transactions. To minimise this risk, HobitalExchange stakes across multiple professional and reputable node operators with heterogeneous setups, with additional mitigation in the form of cover that is paid from HobitalExchange fees.
stETH price risk
Users risk an exchange price of stETH, which may be lower than its inherent value due to withdrawal restrictions on HobitalExchange, making arbitrage and risk-free market-making impossible.

The HobitalExchange DAO is driven to mitigate the above risks and eliminate them entirely to the extent possible. Despite this, they may still exist.

How much control does any party have over users’ funds?

Funds are deposited to the HobitalExchange protocol smart contract and then are locked into the Ethereum proof-of-stake deposit contract. The threshold signature account is collectively controlled by the signatories chosen by the HobitalExchange DAO. Staked ether will be withdrawable only when transfers and smart contracts will be implemented on Ethereum 2.0 (expected in Phase 2).

Stacking

What are HobitalExchange's ETH2.0 staking conditions?

When using HobitalExchange to stake your ETH on the Ethereum beacon chain, you will receive a token (stETH), which represents their ETH on the Ethereum beacon chain on a 1:1 basis. It effectively acts as a bridge bringing ETH 2.0’s staking rewards to ETH 1.0. Whole staking fund will be under HobitalExchange DAO (Decentralized Autonomous Organization) management. The system would apply a 10% profit fee. This fee is split between node operators, the DAO, and an cover fund.

What is the 2-factor authentiction?

To use the HobitalExchange liquid staking protocol, you сan send any amount of Ether to the DAO smart contract and you will receive the equal amount of "stETH" (liquid staking token) in return. From this moment, you will hold stETH tokens in your wallet and keep full control on them, and you will be able to show your public key to prove that you have them in your possession. The “stETH” token can be freely moved and traded at will. The price of stETH relative to unstaked ETH is expected to be volatile until Phase 2 starts. When Ethereum 2.0 Phase 2 starts you can redeem stETH to ETH tokens. It will be possible when transfers in Ethereum 2.0 will be available.

What is Liquid stacking?

Liquid staking protocols allow users to earn staking rewards without locking assets or maintaining staking infrastructure. Users of these protocols can deposit staking tokens and receive tradable liquid tokens in return. The DAO controlled smart contract then stakes tokens with DAO-picked staking providers. Users' deposited funds are controlled by the DAO, staking providers never have direct access to the users' assets.

What is the difference between self stacking and liquid stacking?

Ethereum is soon to be the biggest staking economy in the space. However, staking on ETH 2.0 requires expert knowledge and complex and costly infrastructure. There are several reasons why - the main being the fact that slashing and offline penalties can get very severe if the staking is managed improperly. In addition to this, self-staking brings with it a minimum deposit of 32 ETH and a token lock-up which could last years. Through the use of a liquid self-staking service such as HobitalExchange, users can eliminate these inconveniences and benefit from secure, non-custodial staking backed by industry leaders.

How is do i unstacke?

It is not possible to unstake your ETH with HobitalExchange until transactions are enabled on Eth2. To circumvent this, HobitalExchange makes use of the stETH token to allow users to stake ether without losing the ability to trade or otherwise use their tokens.

HobitalExchange architecture

How to connect my wallet to widget?

HobitalExchange supports the Metamask browser extension and the Wallet Connect protocol to connect your wallet. To connect Metamask, visit the widget page and press Connect Wallet. When shown wallet options, choose Metamask and, if prompted, input your Metamask password and confirm connection. The whole process for mobile wallets using Wallet Connect protocol is as follows:

Step 1
Log in with your wallet
Step 2
Find a 'Scan QR' button somewhere in your wallet app
Step 3
Scan the QR on the screen
Step 4
Confirm connection in the wallet interface

What are the fees when stacking with the widget?

HobitalExchange applies a 10% fee on a user’s staking rewards. This fee is split between node operators, the DAO, and an cover fund.

Ethereum 2.0

What is unbounding period when stacking ETH 2.0?

cStakers will not be able to withdraw staked ETH until Ethereum 2.0, Phase 2 is launched. ETH 2.0 launches in multi-phase rollout. Staking was launched quite early, but the state transitions — including transfers — will not be launched until later phases of the ETH 2.0 transition. Without transactions enabled, it will be impossible to move, trade or spend ETH that has been staked. Practically, this means that any ETH staked on ETH 2.0 early in the rollout will be locked and unmoveable for a period of time — possibly even up to 2 or 3 years. With HobitalExchange you’ll receive a liquid staking token “stETH” that can be freely moved and traded at will. It represents your portion of staked ether. We expect its price relative to unstaked ETH to be volatile, depending on market conditions, until Phase 2 starts.

When would I get my first ETH 2.0 reward? Will it be locked or unlocked?

Your first ETH 2.0 rewards will be illiquid untill Ethereum 2.0, Phase 2 is launched. When ETH 2.0 launches it will be a multi-phase rollout. Staking was launched quite early, but the state transitions — including transfers — will not be launched until later phases of the ETH 2.0 transition. Without transactions enabled, it will be impossible to move, trade or spend ETH that has been staked. With HobitalExchange, you’ll receive rewards (subject to penalties, if any happen) in the form of increased/decreased stETH balance in your wallets. HobitalExchange’s staking rewards will start coming in when the deposits to eth2 go through the deposit queue start validating, which is going to happen in the first days of January 2021.

What % of returns are expected on staked ETH?

The percentage return on staked ETH will depend on the total staked ETH in the network. APR decreases with an increase in the total amount of staked ETH. More information about ETH staking rewards you can found in the staking dashboard.

Frequently Asked Questions

HobitalExchange architecture

Stacking

HobitalExchange architecture

Ethereum 2.0

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