Staking Is Now Live On Okto: Make Additional Income On Your Idle Crypto Through Staking
You can now stake your idle crypto on Okto to earn additional income. Continue reading this article to find out what is staking, it's benefits, how to stake crypto on Okto, and much more.
5 MAY 2023, 3 min read
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Okto has made it easier for you to make passive returns on your idle crypto. In our previous feature update release, we introduced multiple chains on Okto which allows you to access tokens across chains such as BNB, Polygon, Avalanche & Fantom. This time, Okto has taken a step further by introducing Staking which allows you to invest any one of your tokens to a network and instead of letting it stay idle in your wallet, you can simply put it to work and generate additional income.

What is Staking?

Staking is the process of locking your token for a certain period. In return, you earn interest on your tokens. With Okto’s Earn feature, you can earn interest on a wide range of cryptocurrencies.  For example, if you hold BNB in your wallet, instead of letting it stay idle, you could stake your BNB holdings and earn additional income depending on the interest offered at the time of investment. Currently, BNB is available for staking and upcoming tokens include FTM and MATIC while Okto is working towards adding many other tokens*.

How does Staking Benefit You?

Staking allows you to invest any token that you hold in your crypto wallet on the Okto app and generate passive returns. It is like depositing your token to a savings account where the bank pays you interest on your deposit but is decentralized (where no intermediaries are involved) and often pays a higher rate of interest. Okto’s easy-to-use interface makes it easy for you to stake your crypto even if you are new to the space.

Also Read: Custodial Wallets V/S Non-Custodial Wallets In Crypto

How is it Different from Investing in Liquidity Pools?

Within liquidity pools, you are required to deposit two tokens of equal value in order to generate returns. While with single-token staking, you can simply deposit one token and start generating returns instantly.

How Much Income can you Make?

You can earn passive returns around 4% with BNB staking. As Okto adds more tokens,you will be able to earn higher returns.

How to Stake your Token?

  • Go to Earn and select a token (for example BNB)
  • Click on the token, and review the details such as APY, payout duration, gas fees, etc.
  • Click on Invest now, and enter the amount of BNB you wish to invest. If you have an insufficient token balance, you are required to buy or deposit BNB. You can now buy most of the tokens on Okto using a bank transfer.
  • Once you have added BNB, review your order and Confirm.
  • In return, you will receive a “Receipt Token” which is BNBX in the case of BNB. A receipt token is an acknowledgement token or proof of your investment.

What is Annual Percentage Yield (APY)?

The return that you earn on your crypto investment. With APY, you earn interest on your principal amount as well as the interest, offering compounding returns.

What are Receipt Tokens?

They are like acknowledgement tokens that you receive in return for depositing or staking your token within the “Earn” feature. For example, for every 1 BNB staked, you could receive 1.3 BNBX (BNBX is a type of receipt token & this conversion could vary). Furthermore, if there are liquidity pools for these receipt tokens, you can invest them in those pools and earn additional interest on the same.

What is a Lock-In Duration?

The minimum period for which you are required to lock in your crypto in order to earn interest. You cannot do anything with your staked crypto during that period.

What is a Payout Duration?

After you exit your Earn investment, sometimes it may take a few days to process your returns after which you can claim your rewards and principal amount.

What are Tradable & Non-Tradable Receipt Tokens?

With Tradable receipt tokens, you can exchange your receipt tokens for another token while with non-tradable tokens, you cannot exchange your receipt tokens.

Also Read: How To Choose A DeFi Wallet

How to Exit Staking and Claim Your Principal and Rewards?

  • Go to “Portfolio” and click on  “Your investment”
  • Select the token you wish to exit and click on Exit (For example, BNBX)
  • If the token is tradable (which means you can sell your receipt token), you can either:

  a. Request Exit or

  b. Sell BNBX

  • If you “Request Exit”, enter the amount, review the details, and confirm your order.
  • If you select “Sell BNBX”, you can choose the token you wish to receive in return and confirm your order.
  • If the token is non-tradable, you can simply place a “Request Exit” order, review the details and confirm your order.
  • Please note: if the payout duration exists, you will only be able to claim your rewards  and principal amount after the payout period, or else you will receive your rewards and principal amount instantly after the exit order.

*Disclaimer: With high returns, comes high risk. Users should always do their own research before investing in crypto. Staking opportunities on Okto will be rolled out in phases, starting with BNB Staking.

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