How Staking Works on the Staking dApp V2, and How You Can be a Part of it?

By Stan Peterson
Published June 28, 2021 Updated June 28, 2021
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How Staking Works on the Staking dApp V2, and How You Can be a Part of it?

By Stan Peterson
Published June 28, 2021 Updated June 28, 2021

Crypto staking is an emerging trend in the blockchain ecosystem as it incentivizes users to liquify their assets for rewards. The underlying protocol, in turn, can use these tokens to buy back more native tokens and help in development and growth of the ecosystem. Staking helps create a reward mechanism for participants willing to hold their assets for a certain amount of time. 

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How does Staking work?

Staking is a process in which users can lock up their digital assets such as ERC-20 tokens for a minimum amount of time to earn interest. Platforms such as PhoenixDAO offer a higher APR of upto 20% as seen in the Staking dApp v1, that can help token holders make great profit out of their existing crypto assets. 

When staking, the tokens get locked for a certain amount of time. However, few platforms such as PhoenixDAO allow users to unstake their tokens by burning a certain amount of tokens. To understand the concept better, think it of as a traditional banking service where users deposit cash to earn rewards in a fixed deposit. Similarly, if they choose to withdraw the cash before the locking period ends, they have to pay a certain amount. Staking works in a similar fashion but uses better functionalities and are more rewarding. 

Staking With PhoenixDAO

PhoenixDAO is a Multi-chain ecosystem that uses Ethereum Network as the primary chain. However, the company also utilizes Polygon PoS for certain solutions and Binance Smart Chain access to traders. Currently their staking platform is only available on the Ethereum network however, plans are being made to leverage scaling solutions such as Polygons PoS network.

PhoenixDAO staking dApp is a flagship dApp that allows users to earn immediate interest on staked PHNX token (Phoenix ecosystem’s native token) and helps in the working of the overall ecosystem. PhoenixDAO also offers a spot staking functionality that will integrate with different products that the platform provides. 

Here’s what you can do with PhoenixDAO staking dApp:

  • PhoenixDAO staking dApp offers a flexible staking and liquidity farming feature that helps users to earn beneficial interest.
  • Users can choose to stake a large amount of PHNX tokens simultaneously to maximize their profits.
  • PhoenixDAO’s users get the privilege to use the spot staking feature in V1.0 and V2.0 liquidity pool versions according to their choice. 

The staking platform by PhoenixDAO is user-friendly and simplified to provide the users with the best experience. It has the following elements:

  • Dashboard: The dashboard gives information about users’ active and past staking activities.
  • Numio Wallet/ MetaMask Integration: Users can add MetaMask and Numio Wallet (soon to be integrated) and link it with the staking platform. While MetaMask is the primary wallet, Numio Wallet is a partner of the PhoenixDAO ecosystem. 
  • Staking Options: PhoenixDAO gives their user complete control over their staking decisions and allows them to select the days and amount of tokens to stake.
  • Instant Rewards: Once the user agrees to the term and proceeds with the transaction, they will be paid immediately in their connected wallet.
  • Unstake/Burn: If the user has to withdraw earlier than the contract agreement, they have to burn a fee in PHNX.
  • Events: PhoenixDAO hosts various events for their community with several incentives. 

About PhoenixDAO

PhoenixDAO is a platform that has a suite of protocols that help to power the modern digital economy that will be fully decentralised and be eventually community-driven. PhoenixDAO has recently launched the Events dApp with polygon side-chain scaling to reduce the gas fees on the platform for all ticket transactions. The platform also includes the DAO and the dApp store along protocols such as Phoenix Identity, Authentication and the Phoenix Payments.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Stan Peterson
337 Articles
Being an active participant in the Blockchain world, I always look forward to engage with opportunities where I could share my love towards digital transformation.

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