Solanax comes back with some more exciting news — the much-anticipated staking and farming feature is finally live on our platform’s DEX! It’s an incredibly important milestone on the path of Solanax’s development and evolvement into a true DeFi platform.
This will not only enhance the user experience of our platform, but it will also allow cryptocurrency investors to earn passive income. And while there’s certainly more to be done along the way, as we have no plans of stopping soon, for now, let’s overview both the new features of our DEX as well as existing ones.
Staking vs. Farming — What Is It, and How Does It Work?
Both staking and farming are great ways to earn additional income with little to no work on your end. Despite the fact that the crypto market certainly has its charm, attracting both new and experienced investors, active trading and making a profit can be difficult, given the market’s volatile nature.
That’s why more and more crypto enthusiasts turn to more predictable and stable ways of earning profit. Staking and farming are one of the most popular ways of earning passive income. And finally, both of these features are now readily available on Solanax.
Staking
In the most basic sense, staking allows you to earn rewards for holding a certain amount of cryptocurrency for a varied amount of time. Staking utilizes the proof-of-staking (POS) system, so when you stake a certain amount of cryptocurrency, it’s used to validate blocks on a blockchain. So, in a nutshell, you stake a certain amount of cryptocurrency, and that’s literally it.
Farming
While some consider farming to be an improved version of staking, it’s quite a different feature. In essence, farming describes a process of a cryptocurrency investor sort of “lending” their assets, cryptocurrency or tokens, to a chosen dApp. Once the lent amount becomes one with the whole pool, other investors can use it to trade when they expect good return rates.
Main differences
Complexity — staking is usually considered easier than farming, which does have quite the learning curve. Interested investors have to do some serious research in determining and calculating how to achieve the most profitable outcome.
Flexibility — when choosing staking or farming, you have to be aware of the lock-up period of staking. Meaning that once you stake, you cannot withdraw the staked amount of your assets during the designated period.
Transaction fees — yield farmers often jump around between different liquidity pools, and that means paying transaction fees to transfer funds. Staking, on the other hand, doesn’t require any fees since the amount you stake is locked and cannot be budged.
Other Solanax’s DEX Features You Should Be Aware Of
SWAP
Swap allows instant exchange from Solanax’s native token SOLD into other tokens. What it means is that you don’t have to utilize other exchange platforms. With our in-house swap feature, you save time and money since all you have to do is choose what token you want to be exchanged.
Liquidity Pools
In cryptocurrency, liquidity pools are comprised of cryptocurrency or tokens, which are locked in a smart contract. By doing so, we end up with better liquidity as well as faster transaction rates. And that’s something that gives Solanax an edge compared to other DeFi platforms or blockchains even.
Unlike Ethereum, which, at least before the Merge, could only facilitate around 15 TPS (transactions per second), the Solana blockchain, on the other hand, can handle up to 50,000 TPS. And let’s not even get started on transaction fee differences.
On top of that, Solanax provides a compelling alternative, providing innovation in the DeFi liquidity concept for setting contract-based limit orders without slippage. If the trade criteria are not met within limit orders on DEX, the order and gas prices are not wasted.
Wrapping up
It has certainly been a tumultuous time for the crypto market this year so far. Even so, we’re happy to say that we not only persevere but we’ve also achieved significant goals we’ve laid out in front of us along the way. Introducing staking and farming is one of the key goals of this quarter, and we couldn’t be more proud. We’re sure to come back with some more information soon. In the meantime, keep an eye out on our Medium and Telegram channels.
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Sources:
https://www.coindesk.com/learn/what-are-liquidity-pools/
https://u.today/press-releases/pushing-defi-to-new-heights-solanax-platform-is-officially-live
