The world of DeFi staking platform development is still in its early stages. It is a new concept that intensifies the role of stakes in the decentralized platform. In other words, the purpose of this article is to explore and understand the features of DeFi staking platform, how they work and why they are so popular among cryptocurrency investors.
Let’s first understand what is staking
One of the most important processes in the cryptocurrency world. Staking is when a participant locks up their coins and gets rewarded for doing so by getting paid out automatically with newly minted coins in return for securing and verifying transactions on a blockchain network. It is only completed by participants who have enough coins in their wallets to cover the fees and provide them with a sufficient return on investment. A staking platform is a blockchain-based platform that allows users to earn cryptocurrency.
Now, What is DeFi Staking Platform?
The DeFi staking platform is a new concept in the blockchain industry which allows users to stake their crypto assets for returns.DeFi stands for decentralized finance, which is a cryptocurrency-based decentralized financial system. A DeFi staking platform enables anyone with an internet connection to participate in securing and verifying transactions on a blockchain network. Unlike traditional currencies, this process is based on the token holders and their ownership of said tokens. This revolutionary concept will allow many people to participate in this cutting-edge technology that is still in its infancy. DeFi staking platform allows a user to stake their coins for the purpose of securing a blockchain network and earning returns for their investment.
It is similar to an ICO but instead of a pre-sale, they are distributed on the exchange market. It enables investors to manage their portfolios autonomously. It allows investors to create and trade digital assets, hedge risk, and diversify across different asset classes.
There are three ways to earn from the platform:
- Buy coins, invest in a token, or trade your existing cryptocurrency for the tokens. The coins bought will be locked on the platform and can later be unlocked and staked by users.
- The DeFi features a dividend-sharing mechanism that is paid out daily with only 1% of every day going to payouts. This means that investors have time to see potentially large returns in a short amount of time.
- Regardless of whether or not an investor staked their assets, they will receive a portion of the dividends.
The features of a DeFi staking platform development include the following:
User Onboarding Process
A DeFi onboarding platform is very important to the staking process. It ensures that you have a user-friendly interface that makes it easy for new users to stake on your platform quickly.
To start off, here are a few steps you’ll need to take:
A DeFi staking development company offers multiple payment options, and digital asset trading to become the go-to for crypto investors or traders.
Choose the assets and the amount of time
A lot of DeFi tokens rely on users staking their coins in order to generate revenue. To make it easy for them to “reach out” and find tokens to use, platforms offer only a limited variety of coins. Most of the time, this is a mistake as not all cryptos are the same, and offering only a few ignores important differences in order to increase the number of users on the platform.
The Rewards Calculator Tool helps you determine how much your rewards card can earn.
The most important aspect of the DeFi platform is its reward calculator. It will help you track and see how much you can make with your investments. Users can enter parameters like what assets they want to stake, how long they plan to lock in, and even their desired pay-out frequency before determining how many stakes will be earned.
Pay-out type is the amount of money you will receive from your investment.
It allows you to set a time under which you would like your stakes automatically reinvested back into your chosen project every day.
Some of the advanced features are reports of gains graphs and protocols, portfolio management, trading, and referral benefits. Their history includes all transactions ever made with their program.
Why DeFi staking platform development is so popular among cryptocurrency investors?
Decentralized finance is a form of investing in cryptocurrencies. This type of investing has gained popularity among investors over the past decade. As the industry is unregulated and investors feel that it is easily accessible. A promising DeFi project may be worth owning if it has a high market cap, low circulating supply, and a large number of total addresses holding the project’s digital asset. A high market cap indicates that an attractive return on investment is likely to be made in the future.
For investors, staking is an alternative to traditional investing. It allows for a passive return on investment and generally has lower risk with the potential for higher rewards. Staking consists of locking up digital assets in a smart contract to earn interest, whereas in the past the investor would have had to rely on price appreciation. Each blockchain has its own staking model that goes beyond too complex and it is often difficult for newcomers to understand how they work.
In a Nutshell
You want a DeFi platform that’s easy to use and flexible, so you don’t have to worry about high staking fees. In short, it has to be frictionless. Webcom Systems team of professionals is ready to transform your business. Their platform is customized to fit your needs, with features that benefit you and the traders on our platform.
Also Read: How much does it cost to develop a cryptocurrency exchange app?