How to maximize your passive income with liquid staking

For those seeking passive income, the yields provided by a traditional bank do not deliver much in the way of returns. This is why an increasing number of users has been shifting to alternatives in the crypto space that allow passive income. Liquid staking is one of these new options that provide yields for users while not locking up their assets. As things are moving fast in the crypto space, it is hard for users to keep up with new products or platforms. This article will help learn about different options that allow earning passive income and guide users on comparing various services.

The emergence of digital assets

When Bitcoin was first introduced, it popularized the concept of being in control of your funds. Bitcoin paved the way for digital assets to be recognized, which allowed newer protocols to spring. These protocols diversified crypto use cases and created new ecosystems, such as the decentralized finance (DeFi) space, built on top of the Ethereum (ETH) network. 

Decentralized Finance (DeFi)

Decentralized finance is the fastest-growing sector in the blockchain space, consisting of various financial products and services built on the blockchain. DeFi uses a combination of tokens, protocols, and smart contracts to provide access to these financial services without the need for a centralized authority. 

DeFi offers a decentralized counterpart to traditional financial services and new ones, including custodial services, collateralized loans, and lending or borrowing. The decentralized nature of these services allows them to be transparent and censorship-resistant. Because it is built on the blockchain, the counterparty risks are significantly reduced. 

Yield farming and passive income in the crypto ecosystem

Users can profit from these new DeFi services as it enables them to participate in yield farming or earn passive income in the crypto ecosystem, such as lending crypto assets. Another method used in the blockchain space to leverage on coins and earn passive income is staking. Staking is one way to gain popularity, especially for users looking to maintain the blockchain networks they use. It is the process of actively participating in transaction validation on a Proof-of-Stake (PoS) blockchain.

DeFi and staking are two of the most exponentially growing verticals within the crypto industry. Both allow users to gain passive rewards on crypto holdings. Can these two mutually exclusive verticals be bridged together?

Different liquid staking platforms

Several staking platforms allow users to enjoy the benefits of staking while also exploring the DeFi vertical. Platforms such as Rocket Pool, StaFi, and Stake DAO provide users with StakedTokens, allowing them to participate in the DeFi sector freely. Providing StakedTokens is a common denominator for all of these platforms, but what other services do they offer? 

Apart from allowing users to stake their non ERC-20 tokens and receive StakedTokens, Rocket Pool and StaFi offer no minimum amounts for staking. This provides opportunities for users to enjoy staking even if they only have small amounts of coins. These two platforms do not require any user-run nodes. Rocket Pool took it up a notch and offered its users no minimum lock-up period for staking. Stake DAO doesn’t provide these services, but it allows users to earn compounding staking interest, and StaFi insures all of its tokens. 

But what if you can enjoy all of these services in just one staking platform? 

StakeHound unlimited staking platform

Other platforms offer limited services when it comes to staking; StakeHound offers a lot more. Like others, this staking platform also provides StakedTokens that allow users to earn staking rewards while participating in the DeFi sector. Anyone can stake with StakeHound because there is no minimum entry and no lock-up period for staking. There is no need for user-run nodes, and most of all, users can earn compounding staking interest while their tokens are insured. 

Stay tuned for further info on ETH staking on StakeHound in the next few days. Users will be able to purchase stETH with their ETH. This stETH can then be used to participate in DeFi activities. This indeed raises the bar for staking platforms. More coins will also follow soon after.

 

Here’s a table comparing StakeHound vs. other offerings:

 

Criteria

StakeHound

Rocket Pool

StaFi

Stake DAO

Staked Tokens provided upon Staking

No Minimum amounts for staking

n/a

No user-run nodes

n/a

No Minimum lock-up period for staking

X

Compounding Staking interest

X n/a

Insured tokens

no n/a

Conclusion

Without platforms like StakeHound, users who want to participate in both staking and DeFi verticals would need a substantial amount of coins. Thankfully, staking platforms allow users to experience both sectors without needing a huge capital investment. But not all platforms offer the same services. With StakeHound, users can now take advantage of the best of both worlds while enjoying its variety of offerings. 

 

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