What’s the Point of Staking Anyway?
If you’re reading this, then you have at least a general idea of what staking is. Maybe you’ve staked in other liquidity pools before or done some yield farming of your own. The further you get into it, the more detailed staking becomes. But the key thing for you to remember is that staking is a way to earn rewards for holding crypto. We’ll dig into the staking process further below, and explain why it’s useful for both projects and users like yourself.
Staking in General 🧐
Most cryptocurrencies allow you to stake their tokens. Much like a savings account, your tokens are staked in staking pools and earn rewards over time. Projects promote their pool’s earning potential by advertising high APRs (annual percentage rate). APR is the estimated percentage of reward you will get when you stake in a specific pool.
Benefits of Staking 💪
Owners of cryptocurrency may find themselves confused with what to do with it. Perhaps you’ve bought some token that looked cool to you and you’re thinking, “Now what?”. Staking is one way to put your tokens to work.
As mentioned above, you earn rewards for staking tokens. For example, you might get rewarded with participating project’s tokens for staking one project’s token in their pool. Basically, staking is a good way to make use of tokens that would otherwise sit there and do nothing. By staking, you’re generating value with the tokens you already have.
Staking is useful for projects too. If we’re talking about LP token staking, it helps projects gather more liquidity and makes their token stronger.
Costs of Staking 💰
As you may know, another way to make money with your tokens is to trade them. As in traditional markets, a token’s value fluctuates unpredictably. In a classic buy-low, sell-high scenario, token holders exchange their digital assets to generate income.
One possible downside to staking is that it keeps you from trading your tokens for a certain period of time. So if the price on your staked tokens goes down, you won’t be able to sell them. Every project has different staking times for their staking pools, and penalties to discourage users from unstaking before the full period is up.
Another risk for users is investing in a pump-and-dump scheme, that is, a project whose only function is to generate income for itself.
A possible risk for projects are unreliable stakers, or users who unstake early. When users unstake before the full staking period is up, it decreases the pool’s liquidity. Staking pools generate liquidity for projects and users alike, so projects want their users to stake for the full period.
Benefits of Staking on bRing 😏
Staking on bRing is a much more straightforward process than on major projects. Our staking mechanisms are built on smart contracts that arrange and distribute funds according to the size of the users’ stake and their staking time. All of our smart contracts are audited and open to the public. When you stake tokens on bRing, you’re making an investment. You earn rewards from your stake over time and as the pool grows in size.
One problem some users had with our previous staking pools is that they had to wait until the end of the pool to claim rewards. With our updated smart contracts on bRing 2.0, you can claim staking rewards anytime you like, as long as you haven’t unstaked yet.
Besides having more staking freedom, users also enjoy high APR. Every pool is made up of different projects that have different APRs, so they will vary from pool to pool. However, we guarantee a minimum APR on all of our pools, so you will always be rewarded when you stake.
Users can also take advantage of our three-tiered referral system to earn even more. Both users and referrals can earn rewards from three referral lines.
Get Started Staking Today 🥇
So, if you have some crypto sitting there collecting dust, why not put it to good use with staking? Not only will you generate income for yourself through interest and rewards, you’ll also help make your favorite projects and blockchains more secure and efficient.
On that note, bRing is proud to announce that our new platform is up and ready for staking! Stake and earn more rewards with our new referral system! Visit our website to start staking and follow our socials for more news and updates!
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