All you need to know about DeFi staking development

Defi Staking is a form of investment called a shortcut to help people access Defi products most simply. So what is Defi Staking? How is the profit from this staking different from another staking on Binance? How to invest in Defi Staking on Binance? 

What is Defi staking

Before learning what is Defi Staking? We need a clear understanding of the concept of Defi. Defi (Decentralized Finance) is a decentralized finance platform (also known as open finance). In this financial platform, projects, institutions, markets, and financial instruments do not need to be controlled by any other intermediaries (decentralization).

Anyone has the right to access and use the decentralized financial platform without being managed or controlled by any intermediaries. Products in the Defi market are similar to CeFi (traditional centralized financial markets). You can save, lend, borrow, make purchases and sales of cryptocurrencies, transfer funds, pay bills… Instead of being controlled by a third party, with the Defi marketplace, all your actions interact directly with the Blockchain. Transaction orders will be executed based on the operation mechanism of smart contracts.

Defi Staking is a financial product of Binance, in which Defi Staking supports users to participate in Defi projects only. Specifically, you just need to click on the Defi project you want to join and enter the number of coins you want to stake into the project. Binance exchange will do all the rest on your behalf to participate in the Defi project.

Defi staking mechanism

How does Defi Staking work? Defi Staking is also a form of Stake coin. Therefore, your cryptocurrency will be locked for a specific time, and you can choose this time as you like. Usually, there are timelines: 30, 60, and 90 days. After maturity, you will receive interest and the original staked principal.

You can also unstake before maturity, but you will not receive the profit generated so far. When staking is canceled, the original amount of tokens is not sent back immediately, but it takes some time.

Advantages

• Simplify investment in Defi projects: investing in Defi projects requires many complicated steps, such as managing Private Keys, opening on-chain wallets, finding potential projects, and many other stages to participate in. Staking. While with Binance’s Defi Staking, you only need to send coins to the exchange as an investment. The discussion will do the rest and divide the profits for you.
• Safe Investment Guarantee: every Defi project listed on Binance’s Defi Staking is the most reputable potential project on the market. The value of interest that Defi projects can offer will also fluctuate over time. This information will be continuously updated by Binance exchange for users.
• Attractive returns: Defi projects offer relatively attractive interest rates. In addition, using Defi Staking will not be charged transaction fees, helping users save a significant amount.

Defect

• If the on-chain contract is hacked during Defi Staking, Binance will not be responsible for the participant’s loss.
• Unstacking, early withdrawal requires many complicated steps, incurring additional transfer fees on the Blockchain. Early withdrawers also do not receive previously generated interest. Therefore, it is necessary to consider the staking time carefully before participating.

Want to know more about Defi staking development – contact SmartOSC 

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