A stake in tomorrow

Staking

The safe and transparent way to generate yield from your digital assets.

STAKING: How to GENERATE YIELD from your assets

WHAT IS STAKING?

Staking is how digital assets yield rewards, as they are put to work to validate network transactions on the blockchain.

It is a vital way of running Proof-of-Stake (PoS) blockchains and enabling future developments within web3.

Here's our Founder and CEO, Jesper Johansen, to explain.

Supported assets

regulatory compliant staking

Avalanche AVAX
Cardano ADA
Celestia TIA
Chainlink LINK
Concordium CCD
Cosmos Hub ATOM
Ethereum ETH
Flare FLR
Injective INJ
Internet Computer ICP
MultiversX EGLD
NEAR Protocol NEAR
Polkadot DOT
Polygon MATIC
Solana SOL

Challenge the status quo bias

WE SUPPORT TOP-TIER AND NEW-TO-MARKET POS ASSETS

Name
Asset type
Nominal APY
Inflation
Real APY
Lock-up
Staking Ratio
FactSheet
Delegation
Ethereum ETH
Layer 1
3.8%
-0.2%
4.0%
Varies*
23.8%
Download
Solana SOL
Layer 1
7.1%
5.0%
2.1%
2 days
70.1%
Download
Cardano ADA
Layer 1
3.2%
3.1%
0.1%
No lock-up
62.8%
Download
Avalanche AVAX
Layer 1
7.9%
5.6%
2.3%
14 days
59.8%
DownloadDelegate here
Polkadot DOT
Layer 1
14.3%
7.7%
6.6%
28 days
44.2%
Download
Polygon MATIC
Layer 2
5.4%
2.5%
2.9%
3-4 days
38.8%
DownloadDelegate here
Chainlink LINK
Oracle
4.5%
4%
0.5%
28 days
-
Download
Internet Computer ICP
Layer 1
9.1%
8.0%
1.1%
180 days
52.1%
Download
Cosmos Hub ATOM
Layer 1
21.7%
16.2%
5.5%
21 days
70.1%
Download
NEAR Protocol NEAR
Layer 1
8.3%
5.1%
3.2%
2 days
53.8%
DownloadDelegate here
Injective INJ
Layer 1
16%
10%
6%
21 days
59.6%
Download
Celestia TIA
Data Availability
16.1%
8%
8.1%
21 days
47.7%
Download
MultiversX EGLD
Layer 1
9.7%
8.1%
1.6%
10 days
63.4%
Download
Flare FLR
Layer 1
15.0%
10.0%
5.0%
None
71.2%
Download
Concordium CCD
Layer 1
12.9%
10.0%
2.9%
21 days
71.3%
DownloadDelegate here
*Depends on validator exit queue

STAKING FAQS

What is staking?

Staking is the process of holding and locking up a certain amount of crypto assets in a blockchain network to participate in validating transactions and thereby earn rewards.

It works by having token holders commit their tokens to the network as collateral to validate transactions and thereby guarantee the security and consensus of the blockchain network.

What is the purpose of staking?

The purpose of staking is to secure a blockchain network and validate transactions by having network participants locking crypto assets as collateral.

By staking, participants help ensure network stability and security while earning rewards for successful transaction validation.

However, penalties are incurred for any attempt to post false transactions or failure to validate transactions correctly.

What types of assets can be staked?

All assets that use Proof-of-Stake (PoS) as the mechanism to reach consensus on the state of the network can be staked.

At Northstake, we provide staking opportunities for both top-tier PoS assets and new-to-market PoS assets.

What is the difference between staking and mining?

Staking and mining are both methods for validating transactions in a decentralized blockchain network. Staking is used in proof-of-stake networks, whereas mining is used in proof-of-work networks.

Mining is the process of using computer hardware to solve complex mathematical problems, which allows a miner to add a new block of transactions to the blockchain and earn a reward. This process requires significant computational power and energy consumption.

Staking, on the other hand, involves holding a certain amount of crypto assets in a wallet and 'staking' it on the network to participate in the validation of transactions. Stakers don't need specialized hardware like miners do, and staking generally requires much less energy consumption than mining.

Where do staking rewards come from?

The type of staking rewards that token holders can receive from staking their assets differ among different blockchain networks. However, staking rewards will generally be constituted by network inflation, ie. newly minted tokens and transaction fees.

The newly minted tokens are generated by the network itself and distributed as an incentive to participate in the staking process.

The transaction fees, on the other hand, are paid by users who want their transactions to be processed and added to the blockchain.

Both the newly minted tokens and transaction fees are collected by the validator who successfully adds a new block to the blockchain.

How much can I earn from staking?

The amount you can earn from staking depends on several factors such as which crypto asset you are staking, the network's reward structure, and the amount of staked assets in the network. Generally, the more crypto assets you stake, the higher your potential rewards.

What are the risks of staking?

The two important risks to consider when staking is price and liquidity risk.

Price risk refers to the risk that the value of the crypto asset being staked can be volatile and subject to rapid fluctuations. This means that even if a staker earns a high percentage yield in staking rewards, the value of the staked tokens may decrease in fiat terms, potentially resulting in a net loss.

Liquidity risk is another important consideration for stakers, as many staked tokens are subject to a lockup period that can range from a few days to several weeks.

How do I get started?

If you wish to hear more about staking and get started, reach out to us at info@northstake.dk or schedule a call with one of our experts.