Steemit Crypto Academy | Season 3: Week 1 || Staking || Homework post for @imagen

Homework post of professor @imagen

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. (Binace is not allowed)

My Staking on Trust Wallet:

I did my staking in trust wallet using the steps below:

Step 1: I open my trust wallet and click on Tron on the homepage.

Step 2: I click on More

Step 3: At the window that pop below, I click on stake.

Step 4: I then input the amount of Tron I stake by clicking on Max which is 10TRX

Step 5: Then I click on Continue

Step 6: The Transaction became completed successfully as shown below.

My Staking on Automatic Wallet

Below is the step that is used in staking in automatic wallet
Step 1: Open your Automatic wallet

Step 2: At the right hand side down I click on stake

Step 3: At the window that appear I input the amount of coins you want to stake example here I select TRX

Step 4: Then click on stake TRX

Comparing the two platform

From the above transactions on trust wallet and Automatic wallet it shows that
Trust wallet has a profit percentage of 0.74% Whereas Automatic Wallet has a percentage of 5% yearly. So in this case there is a proof that Automatic wallet is more profitable than trust wallet.

2.) What is Impermanent Loss?

Impermanent loss simple mean a loss that doesn't always occurred to a liquidity provider as a result to the volatility in the market. It stands at the losses between the funds that is held in the Automated Market Maker platform the one that is being held our wallet. The loss happen whenever the value of funds that is stake into the Automated Market Maker is fluctuates badly. This mean that the more price is becoming Bullish that is the more the impermanent loss will occurs. The price movement is sometime as a result of the total loss of funds due to the high Volatility in a trading market. This usually make investors to afraid from giving out liquidity to liquidity pools.

3.) What is Delegated Proof of Stake (DPoS)?

DPoS stands for Delegated Proof of Stake which allow users to vote and choose a delegate that can validate the next block. In a simple Understanding, DPoS is a consensus algorithm that is meant to take care of the agreements within blockchain network, which stand out to validate transactions and also as electronic democratic system for users. In DPoS voting can be done by placing your tokens into a staking pool and giving them for delegate. The staking pool is been provider by a service provider. And finally in DPoS one vote is equal to one frozen token which is the what is used in calculating each vote.

4.) Conclusion

As an investor, make sure that you have carried out proper research by knowing the type of risk which you will encounter before going into trading. Giving out liquidity to get a liquidity pool is a very good business, out there for any investors but what you should consider most is the implications of impermanent loss that is ahead.

In the aspect of DPoS which is there to handle users dispute, it would be advisable for users to always delegate part of they tokens in form of staking.

Thank you......

Best Regards:
@imagen