THE BENEFIT OF QUICK STAKING AND QUICK FARMING
Oftentimes, lots of people outside the crypto space attach cryptocurrency and blockchain to trading only. This has come firstly from mostly influencers showing charts of gains and losses in the market, and secondly lack of Blockchain education.
There’s more to cryptocurrency than trading, there’s more to the QuickSwap ecosystem than just buying and hodling $QUICK; I am sure all Dragonites know this.
QuickSwapDEX has recorded tremendous growth in its staking and farming activities with new pools being added to the DEX on a regular basis. To rid the thoughts of “only trading” when the word crypto is mentioned, let’s talk a little about Staking before we go full scale on Quickswap, and would be highlighting the benefits or merits of ‘Quick’ staking and farming.
Staking is the process of supporting a blockchain network and participating in transaction validation by committing your crypto assets to that network. It’s used by blockchain networks that use the proof of stake (PoS) consensus mechanism. Investors earn interest on their investments while they wait for block rewards to be released.
PoS blockchains are less energy-intensive than proof of work (PoW) blockchains, such as Bitcoin, because, unlike PoW networks, they don’t require massive computing power to validate new blocks. Instead, nodes — servers that process transactions — on a PoS blockchain are used to validate transactions and act as checkpoints. “Validators” are users on the network who set up nodes, are randomly chosen to sign blocks, and receive rewards for doing so.
So literally, Staking ensures a blockchain network is secure against attacks. The more stakes that are on a blockchain network, the more decentralized and secure it will be.
Since stakers are rewarded for maintaining the integrity of the network, it’s possible for them to earn higher returns than those who invest in other financial markets. However, there are also risks involved in staking, since the stability of networks may fluctuate over time.
Yield farming, on the other hand, Yield farming is a method of generating cryptocurrency from your crypto holdings. It has drawn analogies to farming because it’s an innovative way to “grow your own cryptocurrency.” The process involves lending crypto assets for interest to DeFi platforms, which lock them up in a liquidity pool, essentially a smart contract for holding funds.
The funds locked in the liquidity pool provide liquidity to a DeFi protocol, where they’re used to facilitate trading, lending and borrowing. By providing liquidity, the platform earns fees that are paid out to investors according to their share of the liquidity pool. Yield farming is also known as liquidity mining.
Liquidity pools are essential for AMMs, or automated market makers. AMMs offer permissionless and automated trading using liquidity pools instead of a traditional system of sellers and buyers. Liquidity provider tokens, or LP tokens, are issued to liquidity providers to track their individual contributions to the liquidity pool.
For example, if a trader wants to exchange Ethereum (ETH) for Dai (DAI), they pay a fee. This fee is paid to the liquidity providers in proportion to the amount of liquidity they add to the pool. The more capital provided to the liquidity pool, the higher the rewards. So A yield farming protocol typically focuses on maximizing returns, while at the same time taking liquidity and security into consideration.
Now, what’s the correlation between both term? Yield farming is very similar to staking because both require holding some amount of crypto assets to generate profits. Some consider staking to be a part of yield farming. While the terms “yield farming” and “staking” are sometimes used interchangeably. However, they differ in complexity, risk level, Impermanent loss, profitability and so on.
What are the benefits of Quick Staking and farming
Quick being the native token of Quickswap happen to be the focal point of these terms, staking is the act of providing tokens to network smart contracts for a predetermined time helps the network remain secure and provides a way for regular users to earn rewards. In the QuickSwap ecosystem, stakers earn a portion of the DEX trading fees for their participation. Notably, staking is a better option for new users because your rewards are based on the number of tokens explorers stake versus the overall understanding of the crypto market like trading. Though only one asset through Quick staking is given with no impairment loss in place, users receiving a percentage of the trading volume while keeping their token idle with no withdrawal and deposit fee makes it more enticing to do. Dragon syrup is additionally given to stakers, which can farm other tokens. Personally, I cannot compare this to dual farming through liquidity pool provision that payout in $Matic and $QUICK. Staking comes with no risk, while farming is perilous. However, Staking allows investors to generate rewards immediately during transaction validation. As a result, it can be a good short-term investment that reaps steady profits.
And yield farming, a popular DeFi service that QuickSwap provides. Yield farming is similar to staking as said earlier such that you earn rewards for providing liquidity to a network smart contract. However, unlike staking, the rewards vary per day and there are no set lockup periods. As such, yield farming can be more profitable but requires much more attention on the part of farmers versus stakers. So literally, yield farming has the potential to be fairly lucrative over the long term. Why? Because without a lockup, you can try to jump between platforms and tokens to find the best yield. You just need to trust the network and DApp you’re using. As such, yield farming could prove to be a great way to diversify your portfolio.
In summary, Quickswap has come a long way in proving to the crypto community to be one of the best out there, with token and community value on the increase by the day. Double earning through staking, dragon syrup and a lot has made it a den of dragons who aim to get more profit from their token. Built on a Matic network Layer 2 which is a fork of Ethereum, with a massive team on the Quickswap project as earning never stops. Dragon’s Syrup enables QUICK stakers to generate yield over and above what they’re already earning from staking in the Dragon’s Lair by distributing tokens to those who stake their dQUICK in the sweet, sweet Dragons’ Syrup rewards pools. Hence, The bottom line, is that the main benefit is to increase the diversification of assets.