How Does DeFi Staking Work?

Adekunle Joshua

DeFi staking allows you to lock up your crypto assets and earn rewards in return. It's a popular way to put your crypto to work

When you stake your assets, you're essentially locking them up in a smart contract on a blockchain platform

This helps secure the network and allows you to participate in the platform's consensus mechanism

There are two main types of staking: pooling and individual

Pooling involves multiple participants combining their assets to increase their chances of earning rewards

Individual staking means staking your assets alone and keeping all the rewards for yourself

Rewards are typically calculated based on two factors: the number of assets staked and the staking period

 The more assets you stake, the higher your potential rewards

Longer staking periods often offer better rewards, but shorter ones provide more flexibility

DeFi staking is an exciting way to earn passive income with your crypto assets