How Does DeFi Staking Work?

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

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

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

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There are two main types of staking: pooling and individual

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

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

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

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The more assets you stake, the higher your potential rewards

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

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

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