Staking is the process of actively participating in transaction validation (similar to mining) on a proof-of-stake (PoS) blockchain. On these blockchains, anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn staking rewards.
Staking will be available on LYOTRADE for two tokens - LYOCREDIT and USDT.
“Locked staking” refers to the process of locking your digital assets on a Proof of Stake blockchain for a certain period of time. This not only contributes to the network but also provides you with staking rewards.
Proof of Stake (PoS) is a consensus mechanism that selects block validators based on the number of coins they stake. The more coins you stake, the higher the rewards.
In a way, you could think of holding your coins on LYOTRADE as adding them to a staking pool. However, there are no fees, and you can also enjoy all the other benefits that holding your coins on LYOTRADE brings.
The only thing you have to do is hold your PoS coins on LYOTRADE, and all the technical requirements will be taken care of for you. The staking rewards are usually distributed weekly from the day of the interest start date.
You can check the previously distributed rewards for a given coin under the Historical Yield tab on each project’s staking page.
LYOTRADE Locked Staking provides an easy way for Holders to stake and earn rewards.
The LYOCREDIT token earns rewards through inflation, or community rewards, versus staking. With inflation, new tokens are added to the network at a rate determined by the protocol, and those tokens are then distributed to holders as rewards.
As staking is conducted on the blockchain via smart contracts, the token redemption time varies according to the blockchain's consensus mechanism. Different blockchains require different redemption times. For example, to unstake EOS, you need to wait 72 hours, while unstaking DOT requires you to wait 28 days.
LYOTRADE optimized the funds' distribution process and shortened the redemption time from 1 day to 30 days. Please note that the standard redemption time is subjected to the actual redemption time of the project blockchain, LYOTRADE may adjust the 1-day redemption time in the future.
APY is a projection based on the rewards we have historically received (“Staking Rewards Rate”) from the applicable asset protocol. This rate is set by the applicable blockchain protocol, and is neither controlled, influenced, nor determined by LYOTRADE Staking and will change (and thus, the APY will change dynamically). Each blockchain sets its underlying rewards rate depending on various factors. The APY may be adjusted to account for funds we hold back from staking as part of our liquidity reserve, if applicable.
When you subscribe to a Locked Staking product, the amount required for the subscription will be deducted from your Spot Account.
The interest will not incur on the day of the subscription. The interest will start to incur from the interest start date and will be distributed weekly. For example, if you subscribe on 1 Feb, interest will be calculated from the Interest start date which will be 1 Mar onwards and will be distributed on weekly basis.
Redemption after the product expires: when the subscribed product expires, your assets will be redeemed from the chain and it requires a certain unlocking period. It takes 1 day to unlock the tokens and 1 day to redeem the funds. Due to time zone differences, it may take up to 48-72 hours in total.
Interest will be calculated from the Interest start date and will be distributed on weekly basis.
Different staking products have different durations and subscription limits. The subscription limit refers to the maximum amount of tokens that each user can subscribe to. LYOTRADE Staking will dynamically adjust the limits according to market conditions and the degree of risks.