Staking & Liquidity Mining
Last updated
Last updated
Different financial products
Staking is a very important aspect of cryptocurrencies that work with a “proof-of-stake” validation system. In a proof-of-stake environment, owners of the cryptocurrency can validate transactions in its blockchain for a reward. Although there are options, usually investors must own a minimum of coins to validate transactions, for example: the Ethereum blockchain requires a minimum of 32 ETH to become a validator.
Validators are there to ensure that all the transactions going through and recorded in the decentralized network are legitimate. As a reward for that action, validators will get a cryptocurrency for every transaction validated.
As for those who don’t have enough ETH to become a validator, there are other options.
Most of the exchanges have a staking option, where in just a few steps coins can be set aside and immediately start generating revenue. Some crypto-exchanges lock-in funds for a set period of time, which does not go without risks.
Many of the most popular cryptocurrencies use a "proof-of-stake" system such as Ethereum or Cardano but not all of them. Bitcoin doesn’t use this system.
Staking with SandBox:
The staking feature in SandBox is relatively straightforward. Sandbox recently deployed an ecosystem on the Polygon blockchain and created a bridge between the SAND cryptocurrency and mSAND (the newly created token). Both coins are identical.
300,000 mSAND are deposited every week into the reward pool for distribution among the liquidity providers.
Currently, this staking offers a yield of 20.51%. (06/04/2022)
More information about Sandbox Staking bellow :
Liquidity mining with SandBox:
Liquidity mining is a feature of decentralized exchanges that allows you to lend two tokens. This pair will grant you access to rewards from the fees paid by the people trading those two coins. In the case of SandBox, the coins in question are mSAND and MATIC (the native token of the polygon blockchain).
However, it doesn’t come without risks, one of which is Impermanent Loss. It occurs when one or both coins in the pair are very volatile and gain or lose too much value, and the price difference fluctuates in a way that changes the ratio you put into the pool.
Liquidity mining has a yield of 36.83%
For example: The mSAND price is €2 and the MATIC price is €1. You decide to deposit €1000 which you have to allocate 500-500 into both coins. Your pair would be 500 MATICs and 250 mSANDs. If mSAND goes to €1, you wouldn’t have a pair equaling €1000, and you would lose 125 mSANDs
More information about Sandbox Liquidity Mining bellow :
