At the time of the bear market at the market Cryptocurrency There is such a high volatility. One of the interesting options for investors looking to hold their coins for the long term is to stake their coins for a return. Which is better than holding it alone. There are various forms of stakes, such as stakes on Proof-of-Stake Blockchain or on various DApps, which is another option for investors who are not familiar with crypto wallets or not. To be sure of the security of using DApps is to be staked with various Centralized Exchanges (CEXs) it is interesting as well. Now, Bybit has a special Staking Carnival event that offers special high returns for investors during this period.
But before we get into the special Bybit promotions, let’s get to know what staking is and what it takes.
What is Staking?
As mentioned above, there are many different staking options. Each method has a different definition. Either deposit coins with DApps such as Decentralized Exchanges (DEXs), Lending Protocol to earn rewards in various forms, or stake them with the Proof-of-Stake Blockchain as part of their security. Or is it going to be Stake and CEXs? It’s equally interesting. How is each stake different? We will get to know each other first in this part.
- Proof-of-Stake Blockchain
Staking for Proof-of-Stake Blockchain is where we place coins with a validator as part of validating blockchain transactions. We will get a return from our involvement in blockchain security. Examples of POS Blockchain are Ethereum, Solana, Cosmos, Near, Binance Smart Chain, etc.
Image courtesy of Ethereum.org, as of October 21, 2022.
One example is the Ethereum Blockchain, which just passed The Merge stage in September 2022, which is a step in the transformation of the Ethereum network from Proof of Work to Proof of Stake. ETH to Stake If you take Ethreum to stake, you will now receive %APR of 4% (as of October 21, 2022). Rewards are derived from three parts: Block Rewards, Tip, and Maximal. Extractable Value (MEV)
Image courtesy of Cosmos.network, information as of October 21, 2022.
Another example is the ATOM coin that if we stake it, the %APR is around 9% (as of October 21, 2022). Rewards come from two parts, which is the fee generated by using Cosmos. Hub and newly produced ATOM coins (Inflation)
However, there is a limitation in taking coins to stake in this form: we will not be able to withdraw coins immediately. Most of the time, there is a waiting period before withdrawals can be called Unstaking Period, usually 20-30 days. For example, ATOM coins take 21 days, but in the case of Ethereum, we will withdraw coins. Not until the Ethereum 2.0 upgrade is complete. Another risk is that we may lose some of our funds from slashing if the validator we staked with does not perform well, such as excessive downtime or invalid transaction records.
- Stake with DApps
Another popular option is to stake your coins with various DApps such as DEXs, Perpetual Protocol or Lending Protocol, where the rewards and the source of the rewards will vary.
%APY Earned by SNX Coin Stake Data from Synthetix.io (as of October 21, 2022).
For example, the Synthetix platform is a trading platform for Synthetic Assets such as sAAPL stocks, sAU gold, etc. If we stake SNX coins, we will get %APY at 64.2% (as of October 21, 2022. ), which the reward given out comes from Trading Fee 1.3% and Inflation 62.6%
%APY Earned by Stake of AAVE Coins from app.aave.com (as of October 21, 2022).
Another example is the Lending platform Aave where we can stake AAVE tokens to help stabilize the platform in the event of bad debt. Currently, they receive %APR of 6.67%. The rewards given out are called Safety Incentives, but the stake holders will have to take the risk of slashing if they incurred the highest 30% of bad debt.
- Stake with Centralized Exchanges
For the first two stakes It may be suitable for investors who are proficient in the use of Crypto Wallets who must have knowledge of keeping their assets safe. In addition, it has to bear the risks that may arise such as hacking or vulnerabilities from smart contracts, so another equally rewarding option is to stake coins with CEXs with the convenience. More comfortable and we have a variety of options. On popular platforms such as Binance or Bybit, which are large, highly reliable trading platforms and offer a wide range of options for investors to choose from according to their preferences. There are both Flexible Savings where we can withdraw money at any time and Fixed Savings where our money will be locked for a specified period such as 30, 90 or 120 days.
In addition, many CEXs are available to Stake Coins on the POS Blockchain for those who wish to participate in the security of the POS Blockchain but may not be comfortable doing it on their own. Can be deposited via CEXs to take care of us on behalf of us. For example, Binance also offers a stake in ETH, giving %APR as high as 5.2%.
Example of %APY earned by Stake Coins through Bybit Savings (as of October 21, 2022).
As for the Bybit forex, there are also a variety of options for investors to stake their coins through Bybit Savings, with options for depositing both Fixed and Flexible Term, similar to Binance. Bybit now has a special Staking Carnival campaign. That allows us to stake coins with a very high %APY return.
Bybit Staking Carnival – Special campaign up to 28% APY when stake BTC, ETH, USDC or BNB coins.
Campaign period: 25 October – 14 December 2022
The %APY return of the Staking Carnival campaign is detailed in the table below.
Note: Qualified investors can choose to deposit only one type of coin. For example, once BTC is deposited, ETH, USDC or BNB cannot be deposited again.
When comparing the returns from Bybit Staking Carnival with other CEXs in the table below, it can be seen that the returns are quite attractive.
Table comparing the results of Bybit Staking Carnival with other CEXs.
For those who are interested, you can follow the steps to join the event. You canJoin the event here
- Passed KYC and required to deposit $50 or more into the Bybit trading platform during the campaign period.
- Join to win a special prize worth 10 USDT by sharing this event with friends via Social Media. Every share will receive one Lucky Draw Ticket. Everyone is entitled to receive a maximum of 10 Lucky Draw Tickets. How to join the event is as follows.
- Share the link of the event page on Social Media, whether it’s Facebook, Twitter or in various Crypto Community groups.
- Send proof of sharing to this form
- You can win prizes.
The Bybit team will randomly select 20 lucky winners to receive a prize worth 10 USDT.