How to Stake DeFi Coin on DeFi Swap
A major perk of holding DeFi Coin (DEFC) is that you can stake your tokens on the DeFi Swap exchange with ease. In fact, depending on your chosen lock-up term, you can earn a highly attractive APY of up to 75%.
In this beginner’s guide, we walk you through the step-by-step process of how to stake DeFi Coin on the DeFi Swap DEX.
- 1 How to Stake DeFi Coin on DeFi Swap – Quickfire Tutorial
- 2 How Does DeFi Coin Staking Work?
- 3 Should You Stake DeFi Coin?
- 4 How Much Can You Make From DeFi Coin Staking?
- 5 How to Calculate DeFi Coin Staking Rewards – 30-Day Term Example
- 6 How to Calculate DeFi Coin Staking Rewards – 365-Day Term Example
- 7 How to Stake DeFi Coin – Full and Detailed Guide
How to Stake DeFi Coin on DeFi Swap – Quickfire Tutorial
For a quick overview of the required steps, below we explain the basics of how to stake DeFi Coin on DeFi Swap.
- Step 1: Get DeFi Coin – Before you can stake DeFi Coin, you will first need to ensure that you have some tokens. You can buy DeFi Coin directly on the DeFi Swap platform in exchange for BNB tokens.
- Step 2: Visit the DeFi Swap Farm – Head over to the DeFi Swap website and click on the ‘Farm’ button.
- Step 3: Connect Wallet – You will now need to click on the ‘Connect Wallet’ button. Choose MetaMask or WalletConnect, depending on where your DeFi Coin tokens are currently being stored.
- Step 4: Choose Lock-Up Period – Next, click on the ‘Stake’ button. Then, click on the drop-down box next to ‘Package’ and choose your lock-up term. DeFi Coin can be staked for 30, 90, 180, or 365 days.
- Step 5: Stake DeFi Coin – In the ‘Amount’ box, enter the number of DeFi Coin tokens that you want to stake. Then, click on the ‘Approve’ button. Finally, confirm the staking agreement via the wallet where your DeFi Coin tokens are currently located.
Once you confirm the staking agreement, the underlying smart contract will deduct the DeFi Coin tokens from your wallet. Then, when your chosen lock-up concludes, you will receive your principal investment back – plus interest.
We explain how to stake DeFi Coin on DeFi Swap in more detail in the later sections of this guide.
How Does DeFi Coin Staking Work?
Before you proceed to stake DeFi Coin, it is important to ensure that you have a firm grasp of how things work.
- In its most basic form, staking allows you to earn interest on your DeFi Coin tokens.
- In turn, you will be required to ‘lock’ your tokens for a minimum period of time.
- This simply means that while your tokens are locked in a staking pool, you will not be able to withdraw them.
- At DeFi Swap, you can stake DeFi Coin for a period of 30, 90, 180, or 365 days.
- As we cover in more detail shortly, the longer the term that you stake your DeFi Coin tokens, the higher the APY that you will earn.
In terms of the underlying process, you can stake DeFi Coin directly on the DeFi Swap platform.
This is the decentralized exchange that backs DeFi Coin and in addition to staking, you can also swap tokens and even earn a share of trading fees by providing liquidity.
All you need to do is connect the wallet where your DeFi Coin tokens are being stored to the DeFi Swap platform, choose your lock-up term and quantity, and confirm.
In doing so, the DeFi Swap smart contract – which operates on top of the Binance Smart Chain, will transfer your DeFi Coin tokens into the staking pool.
Then, when your chosen term concludes, the tokens will automatically be returned to your wallet. Not only will this include your principal investment, but your interest payment – too.
Should You Stake DeFi Coin?
When you buy DeFi Coin, like any other cryptocurrency you will hope that its value increases over the course of time.
However, while you are holding your DeFi Coin tokens in a private wallet, they remain idle. As such, you will not earn any income on your DeFi Coin tokens – which in itself, is an opportunity cost.
- The solution to this issue is to stake your DeFi Coin tokens on the DeFi Swap exchange.
- In doing so, you have the potential to make money on two fronts.
- First, if the value of DeFi Coin increases in the open market, then you will still benefit from this.
- This is because when you stake DeFi Coin, you still remain the sole owner of your tokens – even when they are locked away.
- Second, in addition to the gains you can make from an increase in DeFi Coin’s price, you will also earn interest.
As a result, we would argue that staking is a no-brainer. After all, why leave your tokens in a private wallet, when you can deposit them into a staking pool and earn an APY of up to 75%?
How Much Can You Make From DeFi Coin Staking?
When it comes to the returns on offer, DeFi Coin staking can be very lucrative. Crucially, in the traditional banking industry, savings accounts rarely yield more than 1% per year in interest. In comparison, you can earn double-digital APYs when staking DeFi Coin.
As noted above, there are four lock-up terms that you can choose from when staking DeFi Coin on the DeFi Swap exchange.
Bronze: 30 Days – 30% APY
Silver: 90 Days – 45% APY
Gold: 180 Days – 60% APY
Platinum: 365 Days – 75% APY
Now, it is important to remember that the annual percentage yield – or APY – is based on the amount of interest that you will earn if you stake your tokens over the course of one year.
Therefore, if opting for a shorter lock-up term, you will need to divide the number of days that you locked your tokens against that of the APY.
Furthermore, your staking rewards will be paid in DeFi Coin tokens. As such, this makes it simple to calculate how much you will earn in terms of DEFC.
On the other hand, you also need to remember that the value of DeFi Coin will fluctuate on the open market like any other cryptocurrency. This means that you will also need to incorporate the token value of DeFi Coin into your calculations when assessing your staking ROI.
First, let’s look at an example of how DeFi Coin staking works:
How to Calculate DeFi Coin Staking Rewards – 30-Day Term Example
In our first example, let’s calculate our DeFi Coin staking rewards on a 30-day term:
- Let’s say that you decide to buy DeFi Coin at a token value of $0.50. You invest $2,000 – so that’s 4,000 DEFC tokens
- You then decide to stake your 4,000 tokens on DeFi Swap on a 30-day term at an APY of 30%
- After the 30 days have passed, your 4,000 DeFi Coin tokens are transferred back to your wallet automatically via a smart contract
In addition to your original 4,000 DeFi Coin tokens, you will also receive your staking rewards.
- At an APY of 30% on 4,000 DeFi Coin tokens, this amounts to 1,200 DEFC
- However, this is based on staking your DeFi Coin tokens for a period of one year
- As such, we need to dividend this by 12 – as you only staked your tokens for one month
- This means that your DeFi Coin staking rewards amount to 100 DEFC (1,200 / 12)
Therefore, in addition to your original 4,000 DEFC, you receive 100 extra tokens. All in all, your new wallet balance amounts to 4,100 DEFC.
However, we also need to calculate your new balance in fiat terms. After all, DeFi Coin is unlikely to be the same price when your staking period has concluded – as per the forces of demand and supply.
- You originally invested $2,000 into DeFi Coin at $0.50 per token. This got you 4,000 tokens.
- After staking for 30 days, your new balance is 4,100 DeFi Coin tokens.
- When your 30-day staking period ends, DeFi Coin is trading at $0.75
- This means that we need to calculate our 4,100 tokens against $0.75 – which is $3,075
- Therefore, your overall profit on this staking position amounts to $1,075 ($3,075 – $2,000)
With that said, the value of DeFi Coin – like all digital assets, can go up as well as down. As such, this is a risk that you always need to consider when staking.
How to Calculate DeFi Coin Staking Rewards – 365-Day Term Example
If like many DeFi Coin holders you are a long-term investor – then you will earn an APY of 75% on a 365-day staking term.
Here’s an example of how to calculate your rewards:
- Just like in the previous example, we will say that you originally invest $2,000 into DeFi Coin at $0.50 per token – which gets you 4,000 DEFC
- You stake your 4,000 DEFC for 365 days at an APY of 75%
- After the 365-day term has passed, you get your 4,000 tokens back, plus 75% – which is 3,000 DEFC
- This takes your new balance to 7,000 DeFi Coin tokens
Let’s say that after 365 days, DeFi Coin is now trading at $2 per token.
- You have 7,000 DEFC, so your DeFi Coin portfolio is now valued at $14,000
- This amounts to a profit of $12,000 on your original $2,000 investment
Ultimately, if DeFi Coin has increased in value after your staking period concludes, you are essentially multiplying your yield. After all, you will have more tokens in your wallet after staking, which you can then multiply by the current market value of DeFi Coin.
How to Stake DeFi Coin – Full and Detailed Guide
If you are ready to start earning an attractive yield on your DeFi Coin tokens, we will now show you how you can start staking on the DeFi Swap exchange.
Step 1: Buy DeFi Coin
If you already own DeFi Coin tokens, you can move straight onto Step 2.
If not, here is a quick overview of how to buy DeFi Coin:
- You will first need to ensure that you have a wallet that connects to the BSc network. MetaMask and Trust Wallet are the best options to consider.
- Transfer BNB tokens to your chosen wallet so that you can buy DeFi Coin.
- Connect your wallet to the DeFi Swap exchange.
- Enter the number of BNB tokens that you wish to exchange for DEFC
- Confirm the swap
The DeFi Coin tokens will then appear in your chosen wallet.
- Full guide on how to buy DeFi Coin with MetaMask
- Full guide on how to buy DeFi Coin with Trust Wallet
Step 2: Connect Wallet to DeFi Swap Exchange
Now that you have DeFi Coin, you can connect your wallet to the DeFi Swap exchange. This is a very simple process.
First, click on the ‘Connect to a Wallet’ button. Then, choose your preferred option from MetaMask or WalletConnect.
- If you choose MetaMask, you will need to authorize the connection via your wallet app or browser extension
- If you have Trust Wallet, choose the WalletConnect option and scan the QR code that appears on the screen via the app
Once your wallet is connected to the DeFi Swap exchange, click on the ‘Farm’ button from the top of the page.
Step 3: Choose Lock-Up Term and Staking Amount
Next, click on the ‘Connect Wallet’ button and you will notice that the DeFi Coin staking portal begins to load.
Then, click on the ‘Stake’ button. You will then need to click on the drop-down box located next to ‘Package’ In doing so, this will then show you the four lock-up terms that you can choose from. As noted earlier, this covers a 30, 90, 180, and 365-day term.
After you click on your chosen term, the platform will inform you how much you will earn in percentage terms. In our example above, we have selected the ‘Silver’ package, which offers a 45% APY on a 90-day term.
Next, in the ‘Amount’ box, enter the number of DeFi Coin tokens that you wish to stake. In our example, we are staking 4,000 DEFC.
Step 4: Approve Staking via Your Wallet
Once you click on the ‘Approve’ button, you will see a popup notification appear in the wallet that your DeFi Coin tokens are currently being stored. As we are using MetaMask on our Google Chrome browser, this notification appears from the sidebar.
As you will see from the above image, even though we are staking 4,000 DEFC – which as of writing, has a market value of $1,720, we are only required to pay a fee of $0.11 to process our staking agreement.
This is because DeFi Swap gives you access to extremely low fees. Nonetheless, you will need to confirm the transaction in your wallet, and finally – click on the ‘Stake’ button on the DeFi Swap exchange.
In doing so, your DeFi Coin tokens will no longer show in your wallet. This is because they have been transferred into the DeFi Swap staking pool.
When your chosen term concludes, your tokens will be returned to your wallet automatically – alongside your staking returns.