Technology

An Ultimate Guide to The Defi Staking Platform

DeFi staking is a process that allows a DeFi platform user to act as a validator for earning profit. This is one of the trendy topics in today’s DeFi Market that enable crypto holders for generating passive income by staking cryptocurrencies. The lucrative and sustainable nature of DeFi staking makes it a very ideal choice for DeFi users. 

As modern industry trends mainly indicate the major scopes of POS blockchains, Defi staking starts holding a prominent future. In today’s competitive world, DeFi staking platforms development services help you gain an edge in the decentralized finance landscape. Integration of staking in the existing blockchain platforms or making of DeFi staking platforms has a huge potential to pull massive crypto users worldwide. In this blog, let’s understand major aspects of DeFi staking & its platforms. 

What is DeFi Staking?

DeFi staking is the method of locking digital assets into smart contracts in exchange for generating passive income and rewards. It opens a new way for earning profits from your crypto assets by leveraging on the advantages offered by the DeFi platform. The centralized & decentralized environments both are different. 

DeFi staking is an ideal choice for investors who may benefit from greater rewards than a conventional savings account. According to DeFi staking platforms developers, it is used for all decentralized finance activities that need a temporary user commitment for the digital assets in a staking platform. Let’s take a closer look at the DeFi staking platform & the DeFi ecosystem.

Advantages of DeFi staking to Stakers

  • A simple way to earn a passive income
  • Stakers are offered lower entry fees
  • It’s simple to get started
  • Rewards are greater than expected
  • Stakers are very secured
  • Increased liquidity
  • High energy consumption to validate blocks

Advantages of DeFi on Staking platforms

  • Liquidity has maximized
  • They provide excellent service to the customer
  • Networks and stakers generate revenue

Advantages of DeFi Staking for Blockchain networks, Protocols, or Token

  • Liquidity and dynamic market capitalization for token markets
  • Validating blocks needs less energy
  • DeFi staking maintains liquidity

What are the types of DeFi staking? 

As you develop the DeFi staking platform, you may come across 3 types of DeFi staking activities. They include:

Staking

A DeFi staking platform or PoS (proof-of-stake) blockchain network depends on validators.

This is the purest staking form that involves locking a number of digital assets to become a validator in a blockchain network. In this type, the investors may lock their tokens in a DeFi protocol. These protocols mainly contain lending and borrowing platforms or decentralized exchanges such as Uniswa, SushiSwap, etc.

Yield farming

Although borrowing and lending platforms are the major applications of DeFi, yield farming also reflects the real power of decentralized finance. Yield farming means it’s a way of moving several crypto assets over decentralized finance staking platforms to increase profit. This type of DeFi staking also enables: 

  • Combination of 24/7 market access
  • Smart-contract-driven automation
  • No intermediaries

Yield farming always allows swapping between several DeFi protocols with no downtime. The flexibility brings a vast range of options for decentralized finance staking strategies.

Liquidity mining 

This is the sub-part of yield farming that mainly involves offering crypto assets as well as tokens to the liquidity pools. These pools are extremely important to enable trading with zero intermediaries that are involved in DEX or decentralized crypto exchanges. The liquidity mining pool contains two assets that create specific trading pairs. So the entire system depends on the liquidity providers who create the digital assets available at the pool.

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Key features of the DeFi Staking platform

The features of a decentralized staking model deeply depend on which model you have selected & what types of services you would like to offer to your users. Here is a list of features for DeFi staking development

1. User onboarding: Developing an onboarding platform is very crucial for DeFi staking. The method starts with purchasing and registering crypto assets. DeFi staking companies can insert fiat on-ramp & several payment options to buy crypto assets.

2. Select lock-in periods and assets: Many DeFi staking developments create a mistake of providing a limited coin selection to stake. They must provide a wide range of coin staking, no lock-in periods, or multiple lock-in periods to drive many users to the platform. 

3. Rewards calculator: The rewards calculator is one of the major features of the DeFi staking platform. The major objective of providers and liquidity investors is to earn profit so that they can determine the importance of the DeFi staking platform. Some staking platforms come with fixed prices & some estimate rewards depending on multiple DeFi Market conditions. Usually, calculating a reward depends on the following factors:

  • The coins shared by the stakers
  • The coin’s inflation rate
  • The staking time duration

4. Pay-out type & reinvestment: The platform can be designed for allowing stakers to select whether they would like to stake the reward as a native staking token or only a staked token form. Also, the staker may select to auto-reinvest their staking rewards.

5. Advanced options: Apart from that, DeFi staking platforms have some other unique features – protocol metrics or gains graph reports, referral benefits, trading, portfolio management, access to transaction history, etc.

Steps of participating DeFi stacking

DeFi staking is a method that allows users to lock some native tokens. This mainly enables them to give contributions to the PoS network. The PoS mechanism depends on validators. 

While staking, the validators should be responsible for efficiently carrying out their tasks & ensure zero stake loss occurs during the process. Moreover, validators get an opportunity for earning staking incentives. The journey of DeFi staking mainly follows four quick steps:

1. Select a decentralized finance staking platform

2. Depositing crypto funds to be staked

3. Selecting a validator

4. Earning staking rewards

What does stake crypto mean?

Staking crypto is a way that allows cryptocurrency holders to receive rewards passively from their crypto holdings. A common way of staking includes becoming a validator for PoS blockchain or utilizing a staking solution provided by the crypto exchanges.

Top crypto staking platforms

1. ZenGo: This is a multi-functional web3 crypto wallet secured by biometrics. ZenGo enables users to stake, swap and buy crypto. The WalletConnect feature of ZenGo allows you to connect with decentralized apps securely, earning yields and trading NFTs on Dapps. Moreover, this platform provides 24/7 in-app customer assistance and supports more than 70 assets, including Tezos, Bitcoin, Ethereum, etc.

Key features:

  • Highly secure Web3 wallet
  • Zero KYC required
  • 24/7 live customer assistance
  • 70+ assets supported
  • Daily payout frequency
  • No lock-in period

Key specifications 

  • Price: free
  • Available: Globally
  • Staking types: Flexible, Defi, and Locked 
  • Staking fees: None
  • Supported coins: Tezos, and Ethereum
  • APY: Variable

2. MyCointainer: MyCointainer is one of the all-in-one crypto-staking platforms that provides several ways of earning cryptocurrency. It allows users to store all their coins in a single wallet & earn passive income with less effort. It offers too many ways to earn crypto including masternodes, deposits, cashback, airdrops, etc. MyCointainer offers approx 150 crypto assets and it is a license platform that effectively prioritizes secure transactions & works as a crypto wallet provider.

Key features:

  • Beginner-friendly crypto-staking platform
  • 150+ assets available
  • No lock-in period and flexible access
  • Daily payout frequency
  • Passive income by staking or depositing crypto

Key Specs:

  • Founded: 2018
  • Staking types: Flexible & Locked
  • Staking fees: Fees rely on the asset
  • Supported coins: ADA, SOL, USDT & DOT
  • APY: Variable with 101% APY
  • Distribution frequency: Daily
  • Security: Legal license FVT000255

3. Crypto.com: Launched in 2016, Crypto.com has become one of the largest cryptocurrency exchanges in the world. Although this platform is known for providing low-cost and simple exchange solutions, it’s also involved in crypto-centric product selection. Crypto.com is based in Singapore and it offers a large selection of digital assets and supports investing, trading, staking, NFTs, wallets, and much more.

Key features:

  • A wide array of crypto assets on offer
  • Stake 40+ cryptocurrencies
  • Customizable lock-in period (one month, three months, or flexible)
  • Crypto wallet and integrated exchange
  • Deep liquidity

Key specs:

  • Founded: 2016
  • Staking types: Flexible & Locked
  • Staking fees: 2.99%
  • Supported coins: 40+
  • APY: 14.5%
  • Distribution frequency: Weekly

4. Binance: Binance is a well-known crypto staking platform and it’s a perfect choice for those who are looking for high-reward earnings. This exchange platform can support approx 100 multiple-staking coins that cover a large variety of APYs and projects. Currently, Binance is the leading asset exchange in the world. 

Key features:

  • 100+ projects to earn from
  • Zero fees
  • High rate of interest
  • Flexible lock-in period (10 days, 60 days, or 90 days)
  • Too many deposit options

Key Specification:

  • Founded: 2017
  • Staking type: Flexible, Defi, and Locked
  • Staking fees: Nil
  • Supported coins: PoS coins
  • APY: Variable
  • Distribution frequency: Daily

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Final words

Staking in DeFi brings a new way of earning passive income & users are getting more interested over the days. The opportunities and development that decentralized finance offers are enormous, especially considering multiple concepts, services, and features that can be interconnected & integrated to build a system of unlimited transactions and movements. DeFi staking takes benefit of such flexibilities & offers investors increasing income streams. If you would like to develop the best DeFi staking platform, get in touch with Sphinx Solutions

Read more Blockchain Related Blogs:

What is a DAO NFT Platform?

How A Dapp Developer Creates A Decentralized Application?

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