FTX Staking Review – Supported Coins, APY, Fees Explained https://ift.tt/3J8pq9h

FTX Staking Review – Supported Coins, APY, Fees Explained

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You must have heard of staking in cryptocurrency. It is a prominent arm of the DeFi world that has drawn investors to the world of crypto. Being a way to make your money work for you, is a concept that is here to stay. In this article, we will talk about the staking services offered by FTX, one of the top crypto exchanges in the world right now. Let us start.

WHAT CAN YOU STAKE ON FTX?

FTT

FTT is an ERC-20 token that acts as the native currency of the FTX exchange. It was launched on May 8, 2019, and is currently ranked 32nd according to the latest Coinmarketcap rankings. Staking FTT on FTX opens a user up to many benefits like:

A higher percentage of referral rewards,
Discounts and rebates on maker fees,
IEO tickets that increase as the number of staked FTT increase,
Relative increases in SRM and other airdrops,
Free ERC-20 withdrawals daily, etc.

If you want to unstake staked FTT, you have to wait for 14 days; if it’s urgent, you can pay a fee to unstake immediately.

SRM

SRM is the native token of the Serum exchange, a decentralized exchange that works around a high-performance on-chain CLOB(central limit order book.) It is ranked 109th by market cap with a market cap value of about $1B

SOL

The Solana coin hardly needs any introduction. It made the headlines in the crypto world after seeing significant gains that come on the backs of its superfast transaction speeds and very cheap fees. It is currently the fourth crypto by market cap with an impressive market cap of $75M+

RAY

RAY is the utility token of Raydium exchange, a decentralized automated market maker which utilizes access to Serum’s order book as well as its own liquidity. It is ranked 116th with a current market cap of about $934M.

WHAT ARE THE APYs AND STAKING RATES ON FTX?

FOR FTT

Staking FTT on FTX doesn’t come with direct benefits but comes with many perks, as mentioned earlier. In addition, the amount of FTT held determines the percentage increase in the SRM airdrops allocated(from a 2% increase for staking 25 FTT to a 14% increase for staking 1,000,000 FTT).

FOR SRM

The APY (Annual percentage yield) for staking SRM on FTX is 4% and is paid out hourly. The rewards are doled out in equal proportions as locked and unlocked SRM. Thus, you can gain double benefits on FTX by staking FTT to earn SRM and then staking the SRM rewards to earn even more SRM. To unstake SRM, you would have to wait for seven days unless you are willing to pay an unstaking fee.

FOR SOL

If you stake SOL on FTT, you get 6% APY rewards. As with SRM, unstaking takes seven days, but you can pay an unstaking fee if you want it right away.

FOR RAY

This is the most profitable staking venture in FTT at the moment. The APY is a juicy 20%. You can pay a fee to unstake immediately, or you would have to wait for seven days for free unstakings.

IS IT SAFE?

Staking on FTX, like any other activity on the exchange, is as safe as can be. Consider why:

The FTX exchange has not reported any major hack since it went into existence in 2019. True, that is not enough time to judge, but it still gives a vote of confidence in their security protocols.
There is an insurance fund in place to protect users in the event of extreme market reactions.
Apart from the insurance fund, FTX has also dedicated 5% of all non-FTX owned FTT tokens to hedge against customers’ unfair losses.
They have partnerships with some big names like Binance, Circle, Paxos, etc
Their website is fully SSL-encrypted with regular improvements to prevent hackers from penetrating
They also take users’ accountability seriously by enforcing two-factor authentication to secure their accounts against unwanted use.
FTX is currently valued at $18B after closing a $900M funding round on July 20, 2021, one of the biggest of any crypto company. With that amount of backing, you know that they know what they are doing.

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FREQUENTLY ASKED QUESTIONS

DOES FTX ALLOW STAKING?

Yes, it does. There are currently four tokens that can be staked on FTX, namely FTT, SOL, SRM, and RAY. Staking FTT offers users other benefits like fee-free ERC-20 withdrawals, increased SRM airdrops, increased referral rewards, increased maker fee rebates, etc.

Only those who have completed KYC (Know your customer) registrations on the exchange are eligible to receive staking rewards. In addition, US residents cannot use or stake FTT tokens; it’s against the law for now.

IS FTX.COM LEGIT?

Being the fourth-ranked exchange by spot volume and the third by derivatives volume, FTX is a pretty well-grounded exchange. Even though it is relatively new, it has not recorded any major hack since it started.

In addition, it has some solid partners and showed that clearly when it raised 900 million dollars in a seed round that it completed on July 20, 2021, to establish itself as a top exchange. Some of those partners include Binance, Proof of capital, Circle, Paxos, among others.

CAN YOU EARN INTEREST ON FTX.US?

Yes, you can. There is a provision for staking your crypto on the FTX.US app. However, you need to be enabled for trading first, and then you can stake your tokens by following the instructions on the ‘invest’ tab on the app. When you’ve taken the necessary steps, the app will automatically invest your crypto in the corresponding DeFi pool, and you can start earning.

HOW LONG DOES IT TAKE TO UNSTAKE ON FTX?

For FTT staking, it takes fourteen days, while it takes seven days for RAY, SOL, and SRM staking.

HOW DO YOU GET 8% ON FTX?

You can’t get 8% staking interest on FTX, but you can get it from staking your assets on FTX.US exchange. Follow the steps in the third FAQ of this article and start earning.