Staking cryptocurrencies is a process that involves committing your crypto assets to support a blockchain network and confirm transactions.
It’s available with cryptocurrencies that use the proof-of-stake model to process payments. This is a more energy-efficient alternative to the proof-of-work model, which requires mining devices that use computing power to solve mathematical equations.
Staking can be a great way to use your crypto to generate passive income, especially because some cryptocurrencies offer high interest rates for staking. Before you get started, it’s important to fully understand how crypto staking works.
Benefits of staking crypto
Here are the benefits of staking crypto:
It’s an efficient way to earn interest on your cryptocurrency holdings.
You don’t need any equipment for crypto staking like you would for crypto mining.
You’re helping to maintain the security and efficiency of the blockchain.
It’s more environmentally friendly than crypto mining.
The primary benefit of staking is that you earn more crypto, and interest rates can be very generous. In some cases, you can earn more than 20% per year.
NFT Staking: How does it work?
NFTs are essentially tokenised assets. So just like any tokenised asset, NFTs can be transferred to a platform that takes care of their safekeeping and governance.
That’s right, if you can stake tokens in a value-creating crypto project why not stake tokens as an asset utilising it’s potential as a further income stream?
What is the incentive for a platform to do that you may ask? The opportunity for fee generation is considered a profitable incentive although it is also fathomable that an NFT brings its own unique value to a particular platform as well.
Once the NFT or tokenised asset is transferred to the ‘staking platform’ then governance is assigned to that asset to determine the tokenomics. Once an annualised yield (APR) is established, the tokens can be staked and the delegators are able to claim block and fee rewards.
About YETISWAP NFT staking:
Yetiswap NFT staking is NOW open!
To start, staking is available solely for our YetiSwap Summer Collection. In the very near future we will invite other NFT projects the opportunity to stake their assets e.g. Penguin collectibles. If a project has it’s own token, the rewards can be distributed in their native token, WAVAX or YTS.
Initially YetiSwap Summer Collection NFT Staking Pool provides a total of 2400 YTS Per day distributed monthly. This amount will be recalculated depending on how many NFTs are minted.
Here is an example of how our current NFT staking model works.
- Current mint price for 1 Yeti Summer Collection= 6 Avax
- Staking rewards are 6x400= 2400 YTS daily.
- This amount is to be equally distributed amongst stake holders on a monthly basis and is subject to change.
- You can unstake at any time and claim your rewards with zero fees.
- If you already own a Yeti Summer Collection NFT you are able to stake it, however only if it is not on sale.
- For the first month (December 5th-January 5th) we are offering 2x rewards- so 4800 YTS daily as a bonus for early adopters.
As more projects are onboarded to stake their collectibles, multiple other staking options will become available. We are tremendously excited to open the doors to this new world of rewarding holding tokenised assets. Along with our partners we strive to continue to lead the way for innovation and optimising utility in the Avalanche ecosystem.
To begin your Yeti Swap NFT staking journey you can mint a Yeti Summer Collection here:
https://exchange.yetiswap.app/#/yeti-summer-nft-collection
And you can stake your NFTs here:
https://exchange.yetiswap.app/#/nft-stake
