Staking
Staking is a way for crypto holders to participate in protocol issuance with their crypto holdings and earn rewards by doing so. This is done by participating in the consensus mechanism of Proof-of-Stake protocols, such as Avalanche (AVAX) or Solana (SOL). Basically, staking is the process of locking up tokens to support a network and to receive a reward in return.
Proof-of-Stake is a blockchain consensus mechanism whereby validator nodes on the network validate transactions and are rewarded for doing so. The probability that a validator node is sampled for validating transactions is proportional to its staked amount. Individual holders of the asset that want to stake can transfer their coins to a validator node to increase its probability to validate a transaction, and share in the rewards of the validator node. The rewards consist of block rewards or transaction fees that are related to the blocks that are validated by the validator node. Investors looking to participate in the process of staking may stake their assets directly by running their own software or participate in staking rewards by utilizing staking services from sFOX.
What makes staking interesting, compared to for example lending products, is the balance between risk and reward. With staking you’re able to generate yields on your cryptocurrencies without having to move your funds or give up ownership of those assets.
How to stake on the sFOX platform?
sFOX provides staking services on specific assets for all clients and is continuously looking to expand its offering of assets which can be staked. The process for staking assets is simple.
Go to the Staking page
Click ‘Begin staking’
Select the asset you want to stake and confirm the amount you want to stake
Available balance: The amount of the asset that is available to stake
Minimum Amount: The minimum amount that is required to start staking
4. Click ‘Stake’
When completing the steps above, you have submitted a staking request and sFOX’ system will start processing your request in two steps.
The chosen amount to stake will be transferred from your trading wallet to your staking wallet
When the asset arrives in your staking wallet, sFOX will begin staking these assets on your chosen network
Staked assets are not currently available for trading or withdrawals until they are unstaked.
Rewards
Each network that allows for staking, handles rewards differently. In the case of Avalanche (AVAX), which is supported by sFOX to stake, the process of paying rewards is:
Rewards are collected at the staking end date, or the end of the staking period (every 2 weeks)
sFOX will credit your account immediately once the rewards are collected at the end of the staking period
Please contact sFOX Support in the live chat or at support@sfox.com with any questions.