DeFi and cryptocurrency staking take various forms. On the one hand, projects using the proof-of-stake consensus algorithm –or its variants like the delegated proof-of-stake—may need their community to stake for decentralization and security.
As they lock assets, users may earn the right to verify transactions, receiving block rewards whose schemes vary between blockchains. Yet, on the other hand, upcoming DeFi projects may urge users to lock their native tokens in exchange for superior yields or, in some cases, gain access to even more exciting products offered by the protocols.
Many crypto projects in 2022 do provide options for users to stake their coins. Most allow staking since it is more beneficial to the community and provides an easier route for fortifying the network while gifting participants with above-rate yields.
Table of Contents
Top-5 DeFi Staking Projects in 2022
For what’s on the table, many DeFi and crypto holders are actively searching for crypto staking programs to improve their baselines. Users who are looking for options can check out the following top 5 crypto staking projects in 2022:
Cardano is a modern smart contracting platform and Ethereum’s competitor. It is driven by research and recently activated smart contracting, allowing users to actively develop and launch exciting DeFi, gaming, NFTs, and more dApps. At the core of Cardano is a proof-of-stake consensus algorithm allowing stake pool operators (SPOs) to earn a decent yield by staking. Users who stake in Cardano directly contribute to the network’s resilience through decentralization and are rewarded by block rewards and a decent five percent APY (fluctuates).
The BNB Chain-based project, Safuu, is another option for users who want to hold the protocol’s native token, SAFUU, without any locked-in staking. The main advantage for users is that Safuu’s base layer, that is, BNB Chain, is already secure and decentralized. Therefore, users cannot be concerned about security. Instead, SAFUU stakers’ focus will be on earning extra rewards.
Safuu is the highest paying auto-staking and compounding protocol that pays out interest every 15 minutes, enabled by its unique SAP protocol. It has the highest fixed APY in crypto with 383,025.80 percent and an Insurance Fund (SIF) making it low-risk. The SIF is for price stability and to achieve long-term sustainability of the Sufuu protocol by ensuring that the 0.02355 percent rebase rate is consistently paid to all token holders.
Ethereum is the home of DeFi, no doubt, reading from its share of the total value locked (TVL). While Ethereum might predominantly use a proof-of-work network for consensus, users can stake their ETH in the parallel Beacon Chain using a proof-of-stake system. Ethereum plans to transition from mining to staking blockchain in 2022. It is why staking ETH can be an option for users looking to receive near-risk-free APYs. By early Q2 2022, over $26 billion of ETH had been staked by users. While 32 ETH may be the minimum amount, users can stake lower amounts through operators like Lido and Rocketpool.
Polkadot is building an internet of blockchains. The objective of Gavin Wood and the team when they were building out the network was interoperability, decentralization, and scalability to resolve the pain points in Ethereum. Polkadot has a rapidly developing DeFi ecosystem, and users can stake DOT to receive rewards.
Unlike other consensus algorithms, the Nominated Proof-of-Stake used by Polkadot distributes rewards to validators by the proportion of their work, not by the size of the stake. The annual yield paid out by DOT is around 10 percent minus the validator’s commission rate.
ALGO is a popular, liquid DeFi token. A distinguishing feature of Algorand is its focus on stability and efficiency. Thus, the blockchain uses a pure proof-of-stake system, and the network cannot “fork”. Staking ALGO doesn’t demand many technical requirements for the validator–explaining it is a top destination for users who want to diversify and earn a decent yield of between three to 10 percent.
Also, read ALGO Price Analysis March 2022
DeFi Staking to Diversify Income Streams
Staking is beneficial for supporting projects and protocols. On the other hand, stakers can benefit immensely, especially if they opt for secure, high-paying protocols with automated services like Safuu. More projects are expected to adopt staking as part of the consensus algorithm or as a form of reward for community members in 2022—providing options for shrewd investors.