What is DeFi Staking? Guide to Staking DeFi on Binance

What is DeFi Staking? How is the profit from this staking different from other staking on Binance? The following article explains the easiest way to understand this form of money. 

1. What is DeFi Staking?

DeFi is a form of decentralized finance. DeFi Staking is the act of locking crypto assets to become validators in a decentralized finance or blockchain and earning rewards. However, DeFi (DApp) projects are still unfamiliar to the majority of users. 

In order to make it easier for users to invest in decentralized finance projects, Binance launches the DeFi Staking feature. This feature allows users to participate in investing in DeFi products by staking crypto assets available in Spot Binance wallet and earn profits easily with just one click.

2. How does Binance DeFi Staking work?

Users participate in Staking products on Binance with just one click. Binance participates in DeFi products on behalf of users, receiving and distributing income to users.

Advantages:

• Easy to do: Users do not need to manage private keys, open on-chain wallets, search for projects or conduct transactions and perform complicated steps to participate in DeFi Staking. Binance performs all tasks on behalf of users in the Staking process.
• Keeping funds safe: Binance helps users select the best DeFi projects and monitor the system in real time to reduce the associated risks.
• Higher Earnings: This feature eliminates the fees that come with trading capital but still gets the best return with the same level of risk.

Disadvantages:

• Binance only plays the role of introducing projects and re-networking services related to Staking activities. Therefore, if an on-chain contract is hacked during the process, Binance is not responsible for participants’ losses.
• Because when participating in Staking DeFi, users have committed to lock assets into an on-chain smart contract. The early withdrawal process requires complicated manual operations, which incurs transfer fees on the blockchain. Therefore, users should choose an appropriate time when registering for DeFi Staking and limit early withdrawal.

3. How to make money with DeFi Staking on Binance

Step 1: Login to your Binance account. Register at the link below:

https://www.binance.com/en

Step 2: Access the Staking feature: Click the Earn tab, select DeFi Staking.

Step 3: Perform Staking: In the this page, click Stake Now, enter the amount of assets you want to stake, read and agree to the Accept terms of service box, then select Confirm.

After performing the above step, users can find detailed staking information in [Wallet] – [Earn] – [DeFi Staking]. After staking successfully, the system will calculate your profit and distribute it to the daily Spot wallet.

4. Frequently asked questions about DeFi Staking on Binance

Is Binance responsible if the project’s On-chain contract is hacked during DeFi Staking?

Binance will not be responsible for any loss resulting from the security of the On-chain contract. Binance is just an intermediary platform that introduces projects and provides users with related services as well as management and distribution of income.

Time to lock crypto assets when participating in DeFi Staking?

Currently, Binance offers a variety of options with locking periods ranging from 1 day, 7 days to 30 days or longer. Normally, assets will be unlocked and returned to the account within T +1 day. However, the repayment period will depend on the crypto asset class and this time will be clearly announced in the investment package.

Does early withdrawal have any profit?

On early withdrawal, the investor will not receive any profit. At the same time, the early withdrawal process requires manual work with complex operations and incurs additional costs for transferring funds on the blockchain. Therefore, users please choose the appropriate lock time when registering to participate in DeFi Staking on Binance.

5. Conclusion

Above is the information you need to know about Staking on Binance. It is a simple and effective way to earn money based on DeFi projects. Besides, if you want to launch your own staking platform that combines high-quality features with industry-specific security using top-rated blockchain technology, Pando Infinity is the perfect choice. Feel free to contact us to find how we can turn your brilliant idea into life! 

Read more: 

Decentralized Exchange vs Centralized Exchange – Key differences

Top blockchain development companies in 2022