# Staking Provider Tier

Tier 2 providers can be characterized as providers of "Staking as a Service." From these providers, it is reasonable to anticipate the following:

1. They offer an above-average Annual Percentage Rate (APR).
2. They use an Investigation required: ​<https://lido.fi/​> They fully disclosed their node operators for each chain infrastructure setup resulting in slashing rates below the industry average.
3. They demonstrate a level of accountability for any actions or faults that may occur.

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Typically, we expect the following from providers identified as Tier 2:

1. **Accessibility**: Delegating tasks to the provider should be straightforward, whether the delegating party is an institution or an individual.
2. **Responsibility**: A specific entity must be held accountable for the service provided. There should be consequences in the event of non-compliance or failure to deliver as promised.
3. **Public Service Offering**: Staking services should be the provider's principal offering and should be openly stated.
4. **Financial Stability**: Tier 2 providers, particularly those offering liquid staking, should not present abnormal APR rates compared to their peers within the same tier.
5. **Non-Exchange Identity**: Tier 2 providers should not be exchanges, as their staking rates are based on methods (bounded/flexible), which are often complex and require extensive research to understand fully.

The criteria for the selection process are:

<table><thead><tr><th width="172.66666666666669">Category</th><th width="582">Criteria</th></tr></thead><tbody><tr><td><strong>Accessibility</strong></td><td>Delegation can be accomplished with just a few simple clicks.</td></tr><tr><td><strong>Accessibility</strong></td><td>Comprehensive documentation is available, facilitating a smooth delegation process.</td></tr><tr><td><strong>Accessibility</strong></td><td>A contact form is available, and 'institutional' staking is actively promoted.</td></tr><tr><td><strong>Responsability</strong></td><td>The provider conducts operations under a legitimate legal entity, such as a corporation.</td></tr><tr><td><strong>Responsability</strong></td><td>The provider functions as a Decentralized Autonomous Organization (DAO). Furthermore, its governance token is listed among the top 100 tokens by market capitalization on CoinMarketCap (CMC).</td></tr><tr><td><strong>Transparency</strong></td><td>The provider must publicly declare that they offer staking-as-a-ervice.</td></tr><tr><td><strong>Transparency</strong></td><td>If the provider offers its staking solution via Liquid Staking Derivatives, the identities of the node operators should be disclosed. Moreover, over 75% of these node operators must meet the criteria specified for Tier 2 categorization.</td></tr><tr><td><strong>Exchange exclusion</strong></td><td>The provider should not engage in offering online trading services.</td></tr></tbody></table>

An entity must satisfy at least one criterion from each category to be classified as a Tier 2 provider.

Examples of Tier 2:

* <https://everstake.one/>
* <https://infstones.com/>
* <https://www.figment.io/>

Examples of Non-Tier 2:

* <https://www.48.club/> (Failed responsibility criterion)
* <https://www.certik.com/> (Validator for BNB; failed public criterion)
* [ ](https://www.ankr.com/staking-crypto/)[https://www.ankr.com/](https://www.ankr.com/staking-crypto/) (Undisclosed node operators set)

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