Launch A Top Grade DeFi Staking Platform And Enchant Crypto Investors

Over the formative decades, financial transactions have taken up more easiest ways. As technological advancements keep burgeoning, people are flooded with secure and easy methods of financial transactions. Most of all, the indulgence of middlemen can be avoided through digital transactions. Well, this topic explains DeFi, a blockchain-based financial transaction platform along with DeFi staking platform development services.

DeFi – A Crispy Overview

DeFi corresponds to Decentralized Finance, which means users can indulge in a diverse set of financial activities in the form of cryptocurrencies. Aforementioned, users can perform financial activities without the interference of middlemen. 

Points That Convince People To Rely On DeFi

In the conventional financial system, there are umpteen restrictions along with the involvement of middlemen. Let us see how users can gain a range of benefits by relying on the DeFi platform. 

• The DeFi platform is integrated with a smart contract system. The smart contract system is all about a mutual agreement, which will be stored on the blockchain and cannot be edited.
• Generally, financial activities have to be coupled with utmost security measures. In order to dodge the security risks, the DeFi platform is pinned with several high-standard security features. The security features equipped in the platform are HTTP authentication, DDoS protection, and end-to-end encryption.
• Users who perform transactions will receive rewards, irrespective of the amount. So, who wouldn’t love taking home rewards?
• While the above points were circling over the benefits like security, commission, etc. Here’s another benefit, which is the speed of transactions. Transactions performed on the DeFi platform are equal to the blink of an eye.
• Most of all, unlike conventional financial institutions, the decentralized financial platform lets users perform transactions or related activities at any time.

What Is DeFi Staking and DeFi Staking Platform Development?

Before we discussed the concept revolving around the DeFi platform. Now, let us creep into the concept of staking cryptocurrencies on the DeFi platform. Like we saw in the previous sections, people can make use of the DeFi platform for making highly secured transactions without any brokerage fees. What if users are rewarded if they don’t perform any fund transactions rather hold them for a period?

Yes, if users hold their crypto assets on the platform, they will get rewarded. Now, you will be eager to know how the rewards are calculated. If you see through the concept of the reward calculation for staking the crypto assets, there are multiple metrics.

• The period of staking the crypto assets on the blockchain network.
• The rate of inflation during the time of staking.
• The volume of crypto assets staked by the user and other secondary metrics.

Basically, you need to consider the DeFi staking platform development to let users stake cryptocurrencies.

Proof-Of-Stake Vs. Proof-Of-Work 

Since we have been analyzing the concept of the DeFi staking platform, it is important to know the method of working. To your knowledge, not all cryptocurrencies can be staked. Yes, the staking option differs from one cryptocurrency to another. Cryptocurrencies that employ the proof-of-stake mechanism can only be staked. Why is it so? 

Cryptocurrencies that work on the proof-of-work model consume more power (for computing the transactions). One of the most popular cryptocurrencies, Bitcoin eats more power since it works on the proof-of-work model. 

Hence, the proof-of-stake model is employed in cryptocurrencies in order to lessen the power consumption rate. 

Benefits That Can Be Reaped From The Proof-Of-Stake Model

• Passive income

Users can stake their cryptos for the amount of time they prefer (after serving the mandatory staking period). Hence, they will constantly receive income as a reward for staking their cryptos.

• Cost-effective 

As said before, cryptos that run on the proof-of-stake model consume less power. Therefore, they are absolutely cost-effective. Additionally, they don’t require any equipment to process transactions, unlike the proof-of-work model. 

• Scalable 

Since it is obvious that the proof-of-stake model consumes less power, the scalability rate is high. Here, scalability refers to the ability to process a multitude of transactions. 

Steps Involved In Staking The Crypto Assets On The DeFi Platform

• Choose the cryptocurrency

As the concept of staking cryptocurrencies is drawing traction recently, many new cryptocurrencies are being introduced, which hold the staking option. Hence, it is your choice to select the type of cryptocurrency you want to use for staking.

• Build a wallet

For the purpose of staking cryptocurrencies, users will need a wallet. So, the second step is to prepare a wallet. The wallet prepared can be used for staking cryptocurrencies and storing the rewards as well.

• Satisfy the staking criteria

 In order to stake cryptocurrencies on a DeFi platform, users have to meet certain requirements. One of the requirements includes the minimum amount of cryptocurrency. 

• Hardware installation

In order to perform the staking operations, users will need a well-engineered hardware setup along with a stable internet connection. 

• Stake! 

Once the users parse down to all these steps, they become all set for staking. 

List Of Cryptocurrencies That Are Eligible For Staking

• Ethereum
• Polkadot
• Solana
• Cardano

Advantages Of Developing The DeFi Staking Platform For Your Business

• Rapid growth

The DeFi staking platform has set up a revolution among crypto investors recently. Since last year, DeFi platforms have been getting familiarized among the masses. Since you are now familiar with the DeFi locking or staking mechanism, let us see the stats regarding the total value locked (TVL). In January 2020, the TVL was $0.7 billion. From there, the TVL started burgeoning and reached $8 billion in September 2020. 

Also, Statista states that as of May 2021, the market size of DeFi has seen a deflation of $25 billion. Statista adds that this deflation could be attributed to the modification of prices of cryptocurrencies or fluctuations in gas prices.

• Opportunities to cover new market segments

In the traditional financial system, there prevail age criteria for carrying out financial services. Whereas in DeFi platforms, there are no such criteria. Anyone can register on the platform and enjoy financial services. The World Bank states that around 1.7 billion adults worldwide do not have access to any kind of financial services. Hence, you have got the opportunity to explore a new market segment, which comprises the adult category.

Buckle Up For Your DeFi Staking Platform Development! 

Appdupe is a DeFi staking platform development company that has got a vibrant team of developers, who are skilled in developing DeFi platforms and providing NFT development services. We have different categories of apps like Uniswap clone, Pancakeswap clone, Yearn finance clone, Aave clone, etc., that are based on the DeFi platform.

Are you bubbling on developing a DeFi based staking platform? Reach out to us!

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Marketing is my soul mate and writing is my side kick. Using my writing skills to share the knowledge of app development and upcoming technologies.