Reading Extension | What is staking?

When it comes to staking, I believe everyone has heard about it. So, what is staking? Simply put, it is the pledge of rights and interests under the PoS consensus mechanism to achieve the purpose of mortgage mining.

In fact, this is the process of mining the token’s rights together. The more tokens you have, the more often you can get rewards. The reward form is a reward based on the new Token generated by the block that their token helped create.

Then someone will ask what is the PoS consensus mechanism? PoS is a consensus method that essentially replaces mining with token ownership. Token holders do not need to perform complicated calculations, but instead participate in the creation of blocks by “pledged” their tokens, that is, to save tokens in specific locations without using them (locked position).

In market changes, Token holders usually choose the strategy of “trading in bull market, staking in bear market”. Then the staking brought by staking may affect the interests of token holders when the market changes drastically, and cannot respond quickly to changes in the market during the lockup period. This also reflects that the staking service is not very liquid.

However, Bifrost, as a protocol, provides liquidity services while staking and does not need to lock positions. This originates from the vToken model. Users can exchange tokens into vTokens through the Bifrost protocol, and use vToken for transactions or investments without the need to lock positions.

At present, the currencies that can be staking under the pos mechanism include EOS, Tron, Dash, Tezos, Ontology, Nem, Cosmos, Decred, IOST and other tokens. Generally speaking, depending on the token held, its annualized return is about 7% (such as Dash) to 150% (such as Livepeer). Bifrost will launch the Bifrost app in the near future. Token holders can flexibly exchange vTokens without fear of market changes.

In the near future, every cryptocurrency investor will recognize the trend of staking. Bifrost, this agreement that solves the problem of Staking liquidity will promote the integration of assets on the chain, accelerate the process of asset digitization, and become the fuse that ignites the Staking economy.

Bifrost Finance is a parachain designed for staking’s liquidity