Crypto Academy / Season 3 / Week 1 - Homework Post for [@imagen] - Staking
Hello Steemit:
How are you all, hope you all are doing well. So, today I am very thankful to professor @imagen for teaching us a very important topic about staking. After attending this lecture, I understand many important aspects of Staking and different types of processes i.e Proof of Stake.
Let's start with the answering of given questions,
1.) Research and choose 2 platforms where you can do Staking, explain them, compare them and indicate which one is more profitable according to your opinion. (Binance is not allowed)
First of all, let's understand what is staking?
What is Staking:
For this question, I choose Poloniex and pancakeswap platforms for staking.
PancakeSwap:
PancakeSwap is one of the easiest platforms for staking. But pancakeswap is a riskier platform for liquidity. Because if anyone can participate in liquid reserves of the automated market makers then there is a high risk to obtain APYs.
Staking in PancakeSwap:
First of all, you have to connect your Trust wallet or any other wallet to pancakeswap.
Then in these steps, you can easily stake in pancakeswap.
Step 1:
First of all, you must have cake coins in your trust wallet. Then connect your wallet to pancakeswap.
Then click on POOL.
Step 2:
Then select the pool of stake. I select MANUAL CAKE STAKE
Then click on ENABLE.
Step 3:
Then it cost some fees, click APPROVE button.
Step 4:
After that, click on STAKE.
Step 5:
Then select the amount of cake you want to stake. Then click CONFIRM.
Step 6:
Then it will cost some fees. Click on APPROVE.
Step 7:
Then the staking of cake is done, you will see your staked cake in pancakesap.
Poloniex:
Staking in Poloniex:
In five steps you can easily stake your assets in Poloniex exchange.
- Visit Poloniex official website Poloniex.
- Create your account.
- Buy any crypto assets on it.
- Hold those assets by staking on Poloniex.
- Wait for block rewards.
Key Features of Poloniex:
Poloniex exchange provides users the best platform for staking their assets to gain rewards in a good amount. Some key features which are profitable to users are given below,
The key feature of Poloniex is users don't want to block their fund for staking. Staking is possible without blocking assets which is the best feature.
No subscription is required in Poloniex.
Very good rewards are given by Poloniex in staking.
User has the freedom to do anything they want just like, deposit, withdrawal funds.
Difference Between Poloniex and PancakeSwap:
| Poloniex | PancakeSwap |
|---|---|
| You don't have to lock your assets in Poloniex | In PancakeSwap, there is a need to lock your assets. |
| Risk is low in Poloniex | Risk is high in PancakeSwap. |
| Poloniex will give you a good rate of return | Rates of return in pancakeswap are not good as compared to Poloniex. |
2.) What is Impermanent Loss?
It occurs when you provide liquidity to the liquidity pool. Suppose you provide 1 BTC equivalent to 10,000 BNB in a liquidity pool. But then BNB price decreases and you have a loss as a liquidity provider so that loss is called impermanent loss.
Another reason for this loss is when you arbitrage buy underprices token and sell it when it is on overprice. So, this loss will happen in arbitrage trading to arbitrage traders.
3.) What is Delegated Proof of Stake (DPoS)?
It allows users of the system to have control over who is certifying a ledger. It allows us to have 10 second block times process transactions at 10 transactions per second or more and allows the network to scale to have dedicated nodes that are highly efficient specialized yet remain in control of the shareholders so we can have 10-second confirmation blocks that are more secure than bitcoin.
4.) Conclusion:
In the crypto world, many exchanges give us a feature of staking such as Poloniex which enables us to stake our assets without locking our assets. So, this feature makes Poloniex far better than others and the other main feature is a user is enabled to do what they want such as deposit, withdrawal, staking, etc. In the same way, there are many other exchanges such as pancakeswap which have also many features but there is a risk factor involved in it.
So, it's up to users, what they want and where they want to stake their assets or they want to hold their assets.
Hi @ibad4242, Thank you for participating in Steemit Crypto Academy Season 3.
You did a great job and showed mastery of the topics requested in the assignment, however, you failed to add more information regarding the DPoS consensus protocol.
I look forward to continuing to correct your next assignments.
Grade: 8.0
Thanks. I'm looking forward to learn from your lectures.
@steemcurator02