The process of staking in cryptocurrency involves locking up and committing crypto assets to support the integrity of a blockchain network, help verify transactions and participate in the network’s operations. CashFi news…
In exchange, users earn rewards calculated in yields that are usually higher than bank interest rates. For staking to be possible on a blockchain, it has to run on the proof-of-stake (PoS) consensus mechanism. Avalanche (AVAX) and Polkadot (DOT) are two protocols that offer great staking opportunities for their users and CashFi (CFI) is a new crypto project with plans for liquid staking.
Avalanche (AVAX) is an eco-friendly decentralized blockchain network built by Ava Labs to enable the development of decentralized applications (DApps), while offering low costs and high speeds. On the platform, users can earn up to 11% APY on their staked tokens, with the lightest hardware required of any other blockchain network. Users can set their fee for accepting delegations to their node and they don’t have to fear slashing of their staked tokens. Once they meet the required parameters, they will be rewarded.
Once the users on the Avalanche platform own up to 25 AVAX tokens they will be able to stake, but they need 2,000 tokens to become validators. Staking can happen through wallets like Metamask and Avalanche Wallet, helping its growing network of decentralized applications (DApps) and assets to flourish.
Polkadot (DOT) is a scalable, heterogeneous multi-chain network. It is a fairly new project that has thrived over the past years due to its innovative technology. The platform allows different blockchain networks to transfer messages and information in a trustless manner, pooling their security while sharing their features. It consists of many “parachains” on which transactions can be spread out, allowing many more transactions to be processed in the same period of time. Parachains (parallelized chains) are relay chains upon which a large number of verifiable data structures may be hosted.
Holders of the DOT token can stake their tokens on the Polkadot network and game theory incentivizes them to behave honestly. Good users will be rewarded by this mechanism while bad ones will lose their stake in the network. This makes sure that the token stays secure.
New Generation Of Liquid Staking With CashFi (CFI)
CashFi (CFI) is a next-generation decentralized network that will use a unique fee-sharing approach to provide its investors with access to an array of asset classes. These asset classes include Synthetics, NFTs, and Liquid Staking. Liquid staking allows users to safely unlock on-chain liquidity and take advantage of the profit-bearing opportunities of several decentralized applications (DApps). The project will use a qualitative methodology for off-chain cooperation, while also allowing for on-chain interoperability.
CashFi’s (CFI) platform will run on a Proof-of-Stake (PoS) consensus mechanism, and its native token, CFI is an ERC20 token. The ecosystem will feature a liquid staking platform that will allow PoS tokens to grow. It would enable users to protect the platform by providing 1:1 pegged ERC20 liquid staking representation tokens on Ethereum, allowing them to unlock liquidity for staked assets.
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