Introduction

What is the NORTHSTAKE validator marketplace?

The validator marketplace is an innovative solution that offers institutions access to liquidity for staked ETH in a regulatory-compliant manner. The validator marketplace connects owners of validators operated by Northstake (referred to as Depositors) to Liquidity Providers (referred to as LPs), enabling the over-the-counter (OTC) sale of validators for liquid ETH. Depositors are sellers of validators, whereas LPs are buyers of validators.

The figure below offers a simple illustration of the relationship between Depositors, Northstake, and LPs.

Who can participate in the validator marketplace?

Depositors:
depositors looking to stake liquid Ethereum validators. Depositors will be able to swiftly exit their Ethereum validators by bypassing the traditional exit queue from the Beacon Chain. This validator marketplace ensures that depositors can rapidly liquidate their clients' assets upon request, enhancing liquidity and operational efficiency.

Liquidity Providers:
For liquidity providers interested in acquiring validators, our marketplace offers potential price benefits, making it an attractive investment opportunity. Upon completing a transaction with a depositor, the liquidity provider becomes the sole owner of the validator. They will then receive the Ethereum directly when it is exited from the Beacon Chain, ensuring a straightforward and profitable transaction process.