How does nft staking work

how does nft staking work

The vToken represents your claim on a random NFT from the NFTX vault. By staking your NFTs on NFTX, you can earn the protocol fees and trading fees, providing you with more liquidity. NFTX is a community-driven protocol that runs on the Aragon blockchain. It supports all NFTs minted before the ERC-721 standard, with many NFT whales in their investors’ list.

Why should you stake your NFTs?

Additional revenue stream: While staking your NFTs, you lend your crypto tokens to the blockchain network and get an interest in other tokens. The main goal of staking your NFTs is to earn these rewards in cryptocurrencies or newly minted NFTs.

How does nft staking work

Stakers can also rest assured that they will still be able to use their NFTs as an asset in the game of their choice, through a leased version of the staked token.

NFTX

NFTX is a liquidity protocol that allows users to buy, sell, stake, and swap NFTs all in one platform.

Its main appeal is a twist on traditional NFT staking that allows users to gain exposure to blue chip NFT projects like Bored Ape Yacht Club and Cool Cats without having to purchase an actual NFT from the collection.

Just like Robinhood allows investors to buy fractional shares of blue chip stocks—e.g., $100 of a $2700 Amazon share—NFTX also allows users to purchase fractionalized NFTs in the form of ERC-20 tokens. Effectively, the platform is a DeFi protocol that enables the creation of personalized NFT stock portfolios.

How nft staking works


The current rate of 10 $FISH per day at $0.025 yields $0.25 per day or $91.25 per year.

Doge Capital

Doge Capital is an NFT collection on the Solana blockchain consisting of 5,000 pixelated avatars of the Dogecoin dog mascot.

The project allows holders to stake their NFTs to earn $DAWG tokens, which can also be acquired on Solana decentralized exchanges such as Raydium, Dexlab, and Aldrin.

Just like the cryptocurrency it was inspired by, Doge Capital’s native cryptocurrency token $DAWG is also a meme coin. According to the Doge Capital website, “$DAWG is a meme token with utility.” As the native utility token of the NFT project, $DAWG powers the Doge Capital ecosystem.

Doge Capital even built a Staking as a Service feature that allows any Solana NFT project to implement staking on their own website.


By staking unique MOMOs, you can farm the governance token MBOX. The more MOMOs you collect, the more MBOX rewards you can get each day.

These MOMO NFTs can also be used across other MOBOX partner platforms, and the NFTs from partnering projects can be used on MOBOX as well.
For example, you can use your staked PancakeSwap Profile NFTs on MOMOverse without having to unstake them from PancakeSwap. This lets you enter team battles and earn CAKE staking rewards on PancakeSwap, and at the same time utilize them in MOBOX games to earn MBOX rewards.

Zookeeper (ZOO)

Zookeeper is a gamified yield farming DApp.
It provides NFT staking in liquidity pools that feature different mascots.

How does nft staking work-

This allows NFT holders to earn a passive income while still maintaining ownership of their NFTs.

While NFT staking is still in its infancy compared to other DeFi yield farming concepts, they work in a similar way. By locking up NFTs on a platform, you can receive rewards depending on the annual interest rate, the staking duration, and the number of NFTs staked.

Due to the unique nature of NFTs, investors and collectors generally prefer to HODL and speculate.
NFT staking opens up a new opportunity for them to monetize their assets, which could potentially attract more people to participate and drive up the market demand for stakable NFTs.

Staking an NFT is just like staking your bitcoin (BTC) or ether (ETH). All you need is a cryptocurrency wallet with NFTs. However, not every NFT can be staked to earn rewards.

How does nft staking works

You may also stake NFTs called ZooBoosters to increase your payouts and shorten the time your WSLP is locked. ZooBoosters are NFT cards that may be gained by staking ZOO tokens or purchasing gold chests in the DApp.

MOBOX (MBOX)

MOBOX is a play-to-earn metaverse that mixes DeFi yield farming with NFTs.
It is based on the Binance Smart Chain and enables players to stake NFTs in exchange for MBOX, the local cryptocurrency.

MOMOverse is the name of the MOBOX metaverse, and MOMOs are the names of the NFTs. The NFT marketplace is where you may mint, earn, or buy MOMOs. Each MOMO has its own set of characteristics and a hash power that is produced at random. You may farm the governance token MBOX by staking unique MOMOs.

How does nft staking working

This token may have additional perks such as voting, governance, and general DAO benefits. Some NFT collections will even let you stake these earned tokens, allowing users to compound returns!

Is NFT staking profitable?

NFT staking can be a worthwhile endeavor given the right conditions.

Before staking an NFT there are several factors you should consider.

1) Annual NFT staking yield/APY

What are the expected returns for staking of the project? Some projects may promise lofty interest rates. While this may be tempting initially, you should be cautious of returns that appear too good to be true.

These rates can fluctuate drastically and often won’t hold up for very long.

Some projects will increase APY rewards for staking multiple NFTs or NFTs with a higher rarity score.

You can use a DeFi application like Sushi to purchase NFT tokens. Then, simply pair your selection with Ethereum and stake on the platform!The $NFTX token

In addition to ERC-20 tokens for staking, there is also a native $NFTX token with governance utility that is crucial to the platform’s functionality and community. Though it is not required for staking NFTs on the platform, users that own $NFTX gain weighted voting power on proposals and the direction of the project.

“The idea is that our token will be used as a bootstrap mechanism for liquidity pools, quite similar to how Bancor or Synthetics work and how they use their own token to bootstrap their platform,” NFTX founder Alex Gausman said in an ETH Global NFTHack session.

This allows one to earn an income from staking as compared to simply keeping the NFT in their wallet.About HODL

HODL is a term used by cryptocurrency investors who refuse to sell their cryptocurrency regardless of market conditions. This is especially used when investors refuse to sell their coins despite the price drop.

It is also known as the abbreviation for “Hold On for Dear Life”, referring to the coins simply not being sold regardless of market price trends.

NFT holders may also choose to pool their assets into a decentralised autonomous organisation to form an NFT staking pool. This works in the same way as shares: the more one contributes to this pool, the more one is able to participate in governance tasks on the platform.

This is also similar to peer-to-protocol NFT lending which we wrote about as well.

Here are some of the top staking platforms:

WhenStaking

WhenStaking is a staking platform for NFTs on Onessus, the DApp development studio that has created NFT play-to-earn games such as HodlGod and the upcoming NiftyVille.

NFT assets from these games can be staked on WhenStaking to earn passive income in the form of $VOID, the native token for Onessus that powers current and future projects on the platform. And for fans of popular blockchain games on the WAX blockchain, both Onesssus and WhenStaking are integrated with WAX Cloud Wallet.

Rather than just a simple APY projection, rewards on WhenStaking vary by NFT rarity, collection value, and the platform’s unique level system. On WhenStaking, users can earn more rewards over time, with NFTs leveling up and increasing APY the longer they are staked.

Using KIRA, you can split your NFTs into smaller parts and mint them as individual NFTs. You can then utilize these fractionalized NFTs for trading and lending. On KIRA’s staking platform, you can stake any NFT to earn $KEX tokens (KIRA’s native token). The $KEX token holders can stake their $KEX tokens on KIRA to get KIRA’s native NFTs as staking rewards.Splinterlands

Splinterlands is a popular trading card game on the blockchain that can gain more significant momentum with its NFT staking option. In Splinterlands, every card you collect is an NFT which you can stake in a liquidity pool so other players can borrow and play with your staked cards. The Hive blockchain Splintercell runs on has more than 120 titles, allowing Splinterlands to have fast and scalable solutions.

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