📚Farming, steaking, two pools. PART II
Our previous educational post about liquidity pooling found a positive response from many users, so we continue this column and today we will talk about steaking.
Stacking is one of the convenient and safe (relative to trading) ways to make money in cryptocurrency.
Investing in steaking allows you to get a good profit after the deposit lock-up period ends.
ℹ️ How it happens:
A user deposits their funds in a cryptocurrency wallet for an extended period of time and at a certain interest rate. As long as the funds are in the stack, they are used for financial and technical tasks without the user's involvement. But it is worth noting that this does not put the user's funds at risk in any way.
When the placement period ends, the user gets back his entire deposit from the steaking + income in some currency, depending on the original conditions.
Steaking on CEX exchanges (centralized)
The crypto-exchange here in the role of provider, for a period of time blocks the user's deposit and accrues income to him on the agreed terms. Sometimes the exchange may not block funds and it is possible to withdraw them at will, but the profit under such conditions is lower. It is worth noting that the exchange acts only as an intermediary between the user and the organization, which uses the steak for its own purposes.
Steaking on the DEX-exchanges (decentralized)
In the variant of DEX-exchanges, the blocked funds go to ensure the operation of the financial system, such as providing liquidity to other market players.
Profits from DeFi-stacking are usually higher than from other types of passive investing. These projects are based on the use of automated smart contracts, which in turn reduces the risk of fraud against the user.
This is with the hypothetical possibility that the debit/accrual will be incorrect or the smart contract will fail.
⚡️ There can also be NFTs in steaking.
For example, very soon it will be possible to get a TGR token for steaking our NFT collections Tegro Cat and Tegro Dog. Which will be used in all of the Tegro team's projects, and accordingly, it will only grow in price and usefulness.
So it's safe to say that steaking is a useful and profitable thing, while being less risky than many other ways of making money from crypto.
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