NFT Staking Guide: What It Is And How It Works

NFTs have emerged as an attractive extension of cryptocurrencies and the possibilities of blockchain. Here is how staking works with NFTs.

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One of the hottest trends in the industry today is the idea of “NFTs”. What is NFT? It is a special kind of token that represents a digital asset or physical item.

For example, a token that represents a digital art piece that you’re selling on the NFT marketplace could be considered an NFT. Non-fungible tokens are an interesting concept because they represent a way of adding utility to something — in this case, art. it then becomes a digital asset and can be sold.

The token’s identifying information is stored in a decentralized registry, in the form of Smart Contracts. These registries, similar to the ones used for decentralized apps, enable developers to digital assets directly to users.

As opposed to cryptocurrencies like Bitcoin where one BTC has the same value as another, non-fungible tokens are all unique in their own right. Furthermore, they are not divisible like fungible tokens. In this guide, we will explore NFT with regards to staking and the mechanics of how it all works.

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NFT Staking

One of the thoughts that come to mind is the prospect of staking them for additional profits. Let’s start with the basics, and build from there.

What is Staking?

Among many other things a user can do with NFTs is the idea of staking, which allows you to lock up some of your NFT tokens in a proof-of-stake crypto wallet to secure and govern a blockchain network. It is done in exchange for rewards, rather than a simple deposit or withdrawal model. It’s like a spin-off from mining, but not the same thing.

Why Stake NFTs?

The NFT ecosystem is hampered by low liquidity. At present, it is underdeveloped, as most users purchase the tokenised asset for long-term appreciation. Others do so to burn them, which creates scarcity, and, in turn, increases the value. Staking comes into play to resolve this problem. Staking a non-fungible is no different from staking a cryptocurrency.

Once you’ve found, for example, a digital asset with a revenue-generating potential, stake your tokens and receive incentives. The fee and block could come in the form of an annual percentage yield (APY) of the staked token, depending on the lock option duration. It could feature additional network validation, to ensure transaction integrity and confirmation.

Read: How Yield Farming Works With MoonSwap

Staking rewards depend on a variety of factors. Among them is the NFT asset’s potential to generate considerable income streams. NFT crypto staking can provide rewards up to 100% APY. Besides generating income for users, NFT staking also increases liquidity and attract more investors to the ecosystem. In turn, this will further facilitate the ecosystem’s growth.

Projection of the NFT Ecosystem

At the moment, NFTs encapsulates crypto, gaming, and digital artwork collectibles. However, content creators are currently hopping on the bandwagon, incorporating NFT into their products. For instance, artists who are into oil painting can create a digitized version of their works and even earn royalties.

Notable brands current license their NFTs, including Kellogg’s, Pizza Hut, Ubisoft, MGA Entertainment, and Taco Bell. As of June 2021, Twitter launched its NFT collections. If there’s any better time to become a part of the NFT ecosystem is now!

Conclusion

If you are already an NFT enthusiast who’s short on ideas for how to generate additional income other than HODLing long-term, NFT staking may be the answer. Look for NFTs with the potential to create good returns and invest your money. What makes staking interesting is that you don’t need to purchase your asset of choice outright; yet, you can partly own it and still earn high ROIs.

How Yield Farming Works With MoonSwap

DeFi has shown people around the world that crypto investing can yield good returns. Here is how yield farming works on Monnswap.

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MoonSwap is an amazing DeFi project comprises an AMM dex that offers holders and traders significant profit-making opportunities. It runs on Ethereum layer 2 and comes with benefits, like zero gas fee and fast transaction processing.

Since becoming an innovative, workable product in 2021, MoonSwap is predicated on an execution timeframe of 20 seconds or less, thanks to the implementation of Conflux’s Tree Graph (TG) technology.

With a one-click process, you can convert your Ethereum tokens to MoonSwap tokens, also known as $MOON. Joining MoonSwap protocol comes with significant incentives. As such, liquid providers consider this AMM DEX their haven to make profits, including MoonSwap tokens, also known as ERC20 assets.

Read Also: How MoonSwap Works

Profiting Opportunities Available on MoonSwap

Holders can avail themselves of MoonSwap profit opportunities via different means. They can become MoonSwap LPs (PLPs) and earn MoonSwap tokens, transaction fees, highly appreciating FC (offered by the Conflux community), and tokens from MoonSwap’s airdrop partners. As the community expands, more incentives will come into the scene.

Farming with MoonSwap

MoonSwap can yield huge returns annually. However, you need to be a pool provider. But you cannot be if you don’t have a Web3 wallet. Hence, you can create an account with any of the following:

This wallet is what you use to move your Crypto token to the Conflux blockchain. You can get a ConfluxPortal extension. Using this extension, select the address located at the top-right area of the homepage. This will redirect you to the exchange page, where you can move your tokens. for example from ETH to cETH.

When conduction transactions on the blockchain, you do not have to pay any fee. The network takes care of that. Click approve to grant authorization on the transaction.

Becoming a Liquidity Provider (LP)

Adding liquidity to the pool is a simple process. To get the most profit, you have to be the first person to join the pool. As such, when other members conduct transactions in the pool, you earn significant profits.

However, joining the pool requires two equivalents of the tokens needed. For example, you need an equivalent of 1 ETH in USDT, which is around 2473.

Once done, you can confirm the transaction to move part of your asset to the pool. By doing so, you become an LP. Your fee income can be pegged at 0.3%. Joining the pool as the first LP gives you access to 100% of the pool’s gains. But there are risks as well, which you should take note of.

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Farming in the Pool

Available pools fall under Conflux, Ethereum, and the basic farm where the $MOON balance is displayed. If you have $MOON-Ethereum pair in the LP pool, you can earn tokens (PLP).

Claim your accumulating $MOON token at a zero-gas fee. Connect your Ethereum wallet to the MoonSwap to harvest your accumulated tokens automatically. Understand that farming on Conflux is easier and cheaper than on Ethereum.

How to Buy $MOON

To purchase your MoonSwap tokens, you should visit the Ethereum mainnet. Once on the platform, enter the activated token address (contract):

Some untrusted sources provide fake tokens. As such, be mindful of your transactions. It is important to have enough ETH balance in your wallet. If you do not have a wallet, create one. You will use your Ethereum wallet to make payments and also get the MoonSwap. Visit a reliable exchange, like Uniswap or Binance to get MoonSwap.

How to Trade Your Coins

You need a reliable crypto exchange to sell your coins. Some exchanges have huge trading volumes and active users that conduct transactions daily. Look for those with MoonSwap listings and register. Being on such platforms provides you with the opportunity to conduct transactions anytime. They also come with excellent trading opportunities.

Farming and investing in pools come with high risk. There may be financial losses, especially if the token is of a losing price over time. Also, there is a 0.3% trading fee. 0.25% of it goes to the liquid provider, which 0.5% is used to purchase $MOON from MoonSwap. As such, the $MOON can be destroyed.

Flowing from the above, you have to understand the risks before investing – all investments come with specific levels of risks. But above these factors, there are high potential rewards as well.

The Bottom Line

As a recap for individuals who want to farm on MoonSwap, visit the mining page and select the mining pool you want (if you are not creating one). Hold the PLP token that corresponds to the pool. Mine and stake the MLP token.

Your mining process has begun. You can “stake” and “unstake” your accumulated tokens and harvest them to your Conflux wallet. Once, you have understood the risk, reward, and process, you can decide if this DeFi is worth embarking on.

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How MoonSwap Works

MoonSwap is hugging the headlines for providing transaction-free trading. It is one the leading DeFi movers at the moment, and carving a name for itself.

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When thinking of an optimal viable liquidity product that provides a second layer solution, MoonSwap comes to mind. Introduced in September 2020, this automated market-making (AMM) DEX improves transaction speed at zero-Gas fees. It gives the likes of Uniswap (one of the top-leading exchanges) a run for their money.

Currently, there is a huge migration of liquidity providers (LPs) from Uniswap to MoonSwap. Trading cryptocurrencies has never been easier with MoonSwap as the DEX runs on the Conflux blockchain. The transaction process is entirely seamless thanks to the implementation of Conflux’s Tree Graph (GT) technology. With this tech in place, transactions are executed within 23 seconds or less. But that is not all.

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MoonSwap’s Features

Here are some features that make MoonSwap a top-leading exchange, even overshadowing Uniswap. These amazing qualities are found in its blockchain and network security.

Blockchain

MoonSwap may share similarities with other AMM platforms, but there is one factor that makes it unique – Conflux. This innovative decentralized blockchain has a high throughput of up to 6,000 transactions per second (tps). Interestingly, it does not require an order book thanks to the presence of user-contributed liquidity pools.

Network Security

The Conflux network is a mining network based on proof-of-work (POW). As such, it protects the DEX and the entire blockchain from 51% and reentrancy attacks. With such high integrity, traders can conduct transactions on the network without fear. When it boils down to the exchange’s smart contracts, many third-party security companies carry out audits from time to time.

This security test is carried out to ensure that the exchange is free of vulnerabilities. KnownSec and Slowmist are two of some of the security companies that are behind these audits. The MoonSwap GitHub Repository has the smart contract framework for this project.

MoonSwap’s Rewards

MoonSwap gives traders the unhindered platform to contribute to LP pools via their conflux-based assets and even create new ones to maximize profits. The Chinese-state-backed network caters to that coupled with fewer to no slippages, which makes the decentralized app (DApp) a go-to liquidity exchange for cryptocurrency traders.

Some of the rewards available for liquidity providers (LPs) include the following:

  • Transaction fees
  • MOON token rewards (ERC20 assets)
  • Conflux tokens (FC)
  • Airdrop rewards

Individuals who migrate their assets to MoonSwap before January 2021 can receive Dragon non-fungible tokens (NFTs). With these tokens, they can enjoy the ConDragon DeFi RPG game better. With MoonSwap’s one-click process, LPs on the network can obtain Moon LP tokens.

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MoonSwap’s Fees

As highlighted before, there is a zero-Gas fee for every trade execution. Even when migrating your asset to MoonSwap, especially Ethereum-based-asset holders, you have zero Gas to pay in fees, compared to other exchanges. As such you can convert your ETH into Conflux cross-chain assets. At that point, your ETH becomes cETH.

Number of $MOON in Circulation

The Swap Process

$MOON is the token earned on MoonSwap. Out of a total stock of 100 million $MOON tokens, just under 10.65 million was in circulation as of December 2020. Liquidity Providers share 90% of newly mined tokens distributed. The remaining goes to the MoonSwap Team. The $MOON token would take 7.6 years to achieve its total circulation supply, a statement made on the exchange’s FAQ section.

Every 1.9 years, the amount of token mined would halve, with its initial phase at 10 MOON/block in stage 1, and ending phase at 1.25 MOON/block in stage 4. The liquidity mining operation would disperse 98.75% of the overall $MOON supply. The remaining was originally reserved for the Moon-EcoGrantsFund (MEGFI). However, the MoonSwap community called the shots on “burning” it.

Where to Purchase MoonSwap Tokens

It is worth noting that no third-party trading platform offers $MOON on sale, except Uniswap, and this is as of December 2020. However, holders can exchange cMOON tokens for any Conflux blockchain-based token. You cannot purchase $MOON tokens directly with fiat currencies as well. However, you can buy other cryptos via fiat and later swap them for MoonSwap tokens using the MoonSwap exchange.

MoonSwap’s MarketPlace Value

The MoonSwap token (MOON) ranks #836 on CoinMarketCap at the time of this documentation. It also has a market cap of $20,671,067 (13.58% increase in the last 24 hours), a diluted market cap of $20,694,293 (same as the market cap), and a MoonSwap price of $1.13. This token is available on specific exchanges. You can find respective contracts here:

  • 0x68a3637bA6E75c0f66B61A42639c4e9fCD3D4824 (Ethereum)
  • 0x5b917D4fb9B27591353211c32F1552A527987AFC (Xdai chain)

How to Buy MoonSwap Tokens

If you are new to MoonSwap DEX, $MOON token, and the Conflux network, this section will show you how to purchase $MOON.

Purchase a Major Crypto

Since you cannot buy $MOON directly with fiat currency, you have to purchase a major cryptocurrency via an exchange. Ideally, this can either be Bitcoin (BTC) or Ethereum (ETH). One top-leading exchange to trust with such transactions is Coinbase. This exchange accepts and processes fiat deposits. If you don’t have a wallet with this exchange, kindly register to create one. Once you have completed the KYC process, select a payment method, either with a debit card, credit card, eWallet, or bank transfer.

Kindly note that using cards come with higher fees. However, the process is instant. Bank transfers are the cheapest to conduct, but they also come with slow transaction processes. understand that your deposit process depends on your country of residence. So, choose that which suits you best. Once done, confirm the crypto you want to buy to convert your fiat immediately.

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Convert Your Crypto to $MOON

Move your crypto to an altcoin exchange as $MOON is an altcoin. Your ideal bet is MoonSwap. You can also buy the token on other exchanges as well, including Uniswap (V2), Sushiswap, Hotbit, and Biki. They also provide trading opportunities for crypto traders. Having created an account on any of these exchanges, you have to deposit your cryptocurrency from your crypto exchange, whether it is Bitcoin, Ethereum or Tether.

You can also sell your accumulated coins from the LP pool on these marketplaces, at any time. They have decent daily trading volumes and large client bases. Additionally, register on these exchanges to harness vast trading opportunities.

The Bottom Line

Having covered all aspects of MoonSwap, it is no doubt that this AMM DEX provides amazing opportunities for holders and traders. Its Conflux backbone makes it stand out from other liquidity exchanges. Transactions on the network are free and fast. So, what are you waiting for? It is time to get started with MoonSwap!

The Spartan Protocol Explained

Spartan Swap holds a promise as the DeFi boom continues to defy all odds. Here is what the project is all about.

One of the latest developments in the world of cryptocurrencies has to do with the deepening of the DeFi markets. The introduction of liquidity pools alongside yield farming, and fast access to funds has opened up a new frontier of possibilities that many investors are still exploring at the moment. Spartan Protocol provides an opportunity to access liquidity pools and experience decentralized finance in all possible areas of use.

What is Spartan Protocol 

Spartan Protocol is geared towards the enablement of deepened capital formation through the provision of incentives for participation in liquidity pools. The platform supports the creation of various synthetic assets in a safe manner, adding value and advancing the financial goals of investors. The project is described as a top performer in the ranking of liquidity projects hosted within the Binance Smart Chain.

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SpartanSwap

On the platform, there is the SpartanSwap, which is a native market maker (AMM) with automated functionality. It operates essentially with liquidity sensitive charges or fees.

SpartanLending

With DeFi leading right now in the area of lending, this feature allows for participants on the platform to lend assets or borrow synthetic and real tokens within the platform.

SpartanSynths

This operates within the platform as a tool for minting of synthetic assets. It is weighted to defined and flexible price feeds in order to create leverage and derivatives that are linked to other assets on Binance Smart Chain.

SpartanDAO

Like every DAO with a reward token in its ecosystem, within the Spartan Protocol, the means of governance is defined and using SPARTA, it is able to provide incentives for the lending of digital assets as well as to deepen capital formation. It is also used for rewarding miners on the ecosystem.

Similar Projects and Competition

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There are several projects on the DeFi plane right now that compares substantially with Spartan Protocol. These are looked at a bit more closely below:

JustSwap

This project is native to Tron ecosystem and has the benefit of a huge base of users. However, the project only shares an aspect of Spartan Protocol in its SpartanSwap description. User loyalty would endear investors who are familiar with Tron to try out JustSwap. As much as possible, it is also okay to point out that the support of Binance Smart Chain for SpartanSwap makes it as credible as any other similar project.

Yearn Finance

Yearn Finance is a leading force in DeFi with its early head start as an aggregator explored by investors to maximize yield farming profits. Quite like Spartan Protocol, anyone investing in YFI is confident that the best yields will result for every token bought.  While YFI is marketed majorly as a token that presents the best gains, Spartan Protocol is yet far off from maturity and likely to provide a leap in capital gains going forward.

UniSwap

UniSwap operates an automated liquated pool much like the AMM of Spartan Protocol. Uniswap targets users of the platform to become liquidity providers so that funds are pooled to execute trades. The returns from trades completed and related contracts falls back to each liquidity provider as distributions and via the native UNI token. Much like Sparta, used to incentivize the Sparta ecosystem, UNI does essentially the same function, and is growing in market value.

 Why Use Sparta?

Like most newer projects with a real value addition potential, getting in early means the possibility of higher gains is possible as the project matures. With the known and leading names in DeFi at various levels of maturity, Sparta promises a rush of capital gains for token holders if the present momentum is sustained and not forgetting that is just about to be 6 months in existence by March 2021.

Sparta was given rise to when previously existing 30 projects on Binance Chain used their respective token burn to acquire Sparta. The effect of such combination is the large size of assets that underlie the platform at 300,000,000 tokens. This also enhances the liquidity position and tokens can be readily matched, open orders executed, and auto market maker functions facilitated for the credibility of the platform.

Participants on the platform are also encouraged by the large community of stakeholders, which arose from the other projects that merged into Sparta. The larger the governing community, the higher the chances of democratic norms and better accountability, at least in DeFi.

Price Possibilities 

In looking at the price possibilities for Sparta, a review of the historical position, possible trajectory to the future as well as future price potentials are considered.

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Cryptocurrencies, Ethereum and The Future

The use of Ethereum in the crypto chain has been monumental, From the initial rise of ICOs to the growth of DeFi, it has become a leading bulwark. Here is the pathway to the future.

Cryptocurrencies took the world by storm in 2017 when Bitcoin reached an ATH that tethered at the $20,000 mark. Ever since, the market has posted some amazing ROI that has left other asset classes scrambling for cover.

With the initial mad rush to take a cut of the bitcoin pie simmering down by nid-2018, investors did begin to explore other crypto with potentials, While ETH was also affected by the downturn that hit the crypto market, other initiatives led to the development of DeFi markets, which largely revolved around Ethereum at the time.

In a factual assessment, with its smart contract features, Ethereum largely led the way for real world assets to be tokenized although that glaring advantage has taken a hit of late. The likes of Cardano, Tron, Stellar, and Ripple have introduced smart contract features that are giving Ethereum platform a good run for the DeFi money.

If you want to thrive in the modern market, you should familiarize yourself with the features of Ethereum that have helped positioned it a leading cryptocurrency and a global digital market frontline asset.

Also Read How Chainlink Connects Smart Contracts To The Real World And The Opportunities Therein

About Ethereum

Ethereum can be referred to as a modern technology covering vast online activities and trading. Ethereum is an online platform that aids payments and transactions globally. It provides an avenue for everyone to work online and earn money.

Ethereum has made transactions globally easy as it covers and accessible globally. All transactions and payments will be made online with ease and no third-party issue. All that is needed is to register on the platform, secure your wallet, fund it and transact with precautions. Ethereum service is also available 24/7 customer support service if you have any issues. 

Perks of Ethereum

This crypto provides an unbiased and equal opportunity for everyone. Being on the platform and obeying rules makes you entitled to benefits and profits concerning trades and activity. 

It serves as a modern avenue for online development and financial breakthrough. Ethereum provides a transparent, open-source service that allows you to monitor your activities and use strategies or codes used by pros on the platform. 

It makes investments much more effortless. Ethereum serves as your bank, your secured wallet, which can be accessed and used for any transaction anytime, anyway. 

It is available in any quantity. You can purchase Ethereum worth any value of money you have for small investors or beginners.  

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A Guide on how to get started on the Ethereum platform. 

After registering on the platform, here are the basic things you need to do. 

Select a wallet. This wallet connects you to trading on the platform and keeps records of your transactions. 

Fund your wallet. The currency of Ethereum is ETH, as the US currency is Dollars (USD $). This currency will be exchanged for any transaction with any currency on the platform. This is like a balance to avoid confusion and currency preference. 

Start trading on the platform. This is essential to make profits and key to your financial breakthrough. 

Frequently Asked Questions About Ethereum and its Future

Is it feasible for Ethereum to reach $2000? 

Generally, every cryptocurrency is not fixed; hence rise and fall in their price. Ethereum has once been valued at $1400, though fallen now but very much feasible to exceed the $2000 worth.

Is Ethereum better than Bitcoin? 

With the recent rise in Ethereum value, it is safe to choose Ethereum over Bitcoin in terms of its usability, beyond just as a crypto. Its blockchain value is growing.

Ethereum is the future, and this can be seen from the expanding use it has seen in the DeFi game.

Conclusion

Ethereum is a leading crypto with clearly marketable credentials. With steps taken to re-imagine the blockchain and make it nimble and responsive to marketplace realities, there is no doubt that it is not giving up its market lead so easily.

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