Snapshot
- CoinDCX launches EOS, Tezos and Neo on Stake.
- Staking on CoinDCX is a simple, two-step process!
- Staking tokens on Centralized exchanges are better than lending them on DeFi protocols.
After receiving an overwhelming response from our community on the launch of Stake, our users communicated to us that they wish to have more options to stake and earn passive incomes on CoinDCX.
To keep up with the increasing demand, CoinDCX is glad to announce the launch of EOS (EOS), Tezos (XTZ) and Neo (NEO) on Stake.
These options will be available to all the traders and HODLers on CoinDCX’s platform.
Similar to the other Proof of Stake tokens that are available on Stake, we will be following a liquid staking mechanism where users do not have to lock their funds to earn additional income on their idle lying cryptocurrencies. Just deposit these tokens on their respective wallets and the incomes will start coming in. Having more options to stake in will help all our platform users to diversify their portfolio while earning passive income in many more cryptocurrencies.
Why Stake on CoinDCX?
Well, there are various options available to traders and investors these days. One of the most frequently used methods to earning passive income to your idle lying cryptocurrencies is by lending them on DeFi protocols.
The most popular use case of DeFi is lending and borrowing. Long term traders and HODLers sign up on DeFi protocols and lend their cryptos to become one of the many liquidity providers (LPs). These LPs get rewarded for their stake in the network.
Even though lending in a DeFi protocol has several characteristics that are similar to that of staking on a centralized exchange like CoinDCX, it has got several disadvantages too.
While tokens are frozen as collateral to earn staking or transaction fees on DeFi protocols, staking on CoinDCX does not require any locking of funds. All you do is simply deposit those tokens on your wallet and the staking begins! Staking on CoinDCX is so flexible that traders can trade on our Spot and Margin markets when the price is right and HODL and earn passive income while they wait for their target price.
It often happens that you are unable to access your funds when you need them the most, especially when the market is volatile. Adding to our previous point, CoinDCX gives users, full control over their tokens. We do not lock in your funds and we neither charge you with any transaction fees for staking on CoinDCX.
Stake continues to be one of the favourite products for many investors who come from a non-technical background. While lending on DeFi protocols requires you to understand the protocol and the fees structure, staking on CoinDCX is a two-step process. You decide which coin you want to stake and its quantity. You then buy the coin or deposit it in your CoinDCX wallet. That is it!
While you enjoy the rewards for staking, we protect all your funds. 95% of all funds stored on CoinDCX are stored in Multisig cold wallets. Moreover, CoinDCX users’ funds are completely safe and protected by BitGo’s $100 million insurance policy. This feature might not be available on DeFi protocols if hackers are able to find flaws in the smart contract!
Thus the simplicity of Stake, as a product, its competitive APR offered to users, fund protection and zero transaction fees makes it all a safer and better option than lending on DeFi protocols. This is because lenders will always face risks of transaction fees (which has been high because of the congestion on Ethereum’s network) and greater market volatility.
So, what are you waiting for? Come stake your Proof of Stake tokens and earn the best possible rates available in the market.
