Coconut Oasis National Exchange Staking
Why stake on-Chain with Shape Plain Capital
Coconut Oasis National Exchange
You can unstake your assets at any time (*) once they are activated.
Secure We maintain separate blockchain addresses and wallets to facilitate the on-chain staking of your assets.
Convenient Put your idle assets to work in a few simple steps, and enjoy proportionate returns(2) via regular payouts.
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How to stake on-chain with ShapePlainCapital.com
- Sign Up
1.Launch/Download Add the Shape Plain Capital App to home screen and go to Coconut Oasis National Exchange.
- Earn/Deposit
2.Select the Investment you want to stake on-chain.
- Community Privilege
3.Review and confirm to start receiving rewards.
If you have any questions regarding Staking, please visit our — FAQ about Staking
What is on-chain staking?
- On-chain Staking is a great way for you to passively generate rewards from your cryptocurrency holdings, which might otherwise be sitting idle in your Shape Plain Capital Dollar wallet.
- When you stake your cryptocurrency on a blockchain protocol, you are participating in maintaining the protocol’s security and are incentivized to do so by receiving rewards from the protocol in the form of staking yields.
Benefits of staking your crypto on-chain
- On-chain Staking rewards are typically expressed in annual percentage rate (APR) terms. For example, a 5% APR means you would, in theory, receive $5 annually for every $100 worth of Deposit you stake on-chain.
- Different blockchain protocols have different APRs, and there is typically no limit to how much you stake on-chain for any cryptocurrency or investment. Your rewards may vary due to price fluctuations of the underlying cryptocurrency, changes in the number of validators, changes to the protocol, and many other factors.
How staking works
- On-chain staking is an integral part of a Proof of Stake (PoS) blockchain, which is designed to securely verify transactions. By participating, you are ultimately contributing to a process critical to its security and operation.
- In PoS blockchains, transactions are verified by validators who must stake an amount of a blockchain’s token to participate in the verification process. In return, validators are rewarded with more tokens. If they engage in malicious behaviour or fail to validate (e.g., by going offline), a portion of their stakes could be taken away.
- PoS is just one of the many consensus mechanisms that blockchains employ to verify transactions before they are added to the blockchain.
Some blockchains, such as Ethereum, which transitioned to PoS in 2022 (called ‘The Merge’), require validators to stake a large amount of native tokens. In Ethereum’s case, the current minimum requirement is 32 ETH. However, there are other ways to participate in on-chain staking even without the required number of tokens.
Considerations when staking Shape Plain Capital Investments on-chain
- As with all investments, there are some considerations and risks to take into account before on-chain staking or locking up your crypto:
Price movements and total return:
- While on-chain staking lets you receive yield, an important consideration is the concept of total return — a combination of capital appreciation (or loss) and the yield received.
- Investment prices can be volatile, so keep an eye on potential capital gains or losses along with your staking rewards.
Bonding period:
- Some tokens have minimum bonding periods where users cannot withdraw their tokens unless balance settles. Furthermore, when withdrawing tokens from a staking pool, there could be a specific waiting time for each blockchain before the tokens are received. So if you want to use your virtual assets for other purposes (such as trading) during a particular time, you may not want to stake your virtual assets.
Validator penalties:
- There is always a risk that the validator fails to perform their tasks properly or engages in malicious behaviour. These improper validator actions may be penalized by having their rewards cut or the staked amount taken away, potentially affecting other users in the pool as well.
Fees:
- Staking pools and crypto exchanges may also charge fees or commissions.
Hacks:
- Always be cautious of potential hacks or vulnerabilities that could jeopardize your locked-up funds.
Is on-chain staking for you?
- In summary, on-chain staking passively generates rewards on your cryptocurrency holdings. However, there are risks and downsides to consider, including validator penalties, market price movements that could affect the total return, hacks, fees, and the minimum staking period.
Do your research, exercise due diligence, and make informed decisions about whether on-chain staking aligns with your financial goals!
What are the reward rates?
- The reward rates for successful validations are determined by the blockchain protocol. The rates listed in the ShapePlainCapital.com App are an estimation based on data from validators and are subject to change.
- The actual rewards will be distributed to you when they are generated (or unbonded, as applicable) by the respective blockchain protocol. They will be the rewards received from validators after the deduction of service fees charged by ShapePlainCapital.com.
ShapePlainCapital.com does not guarantee any particular rate of return. Please note that only virtual assets that have already been staked on-chain are eligible for rewards for the time the rewards are due.
How often do I receive the rewards?
- You will receive rewards depending on the blockchain protocols.
How do I check my Staking rewards?
- You can view your on-chain Staking rewards by tapping Balance.
What is unbonding?
- Unbonding is the process of withdrawing your stake from a network. There is typically a waiting period determined by the relevant blockchain protocol, which serves the purpose of preventing malicious actors from suddenly withdrawing their stakes at the expense of the protocol at large, whether in response to a market shift or as a deliberate attack on the protocol.
- The unbonding period is an important mechanism for maintaining the security and stability of Proof of Stake networks. Virtual assets will not generate rewards during the unbonding period. The length of the unbonding period is determined by the blockchain protocol, not ShapePlainCapital.com
Earn vs on-chain Staking — what’s the difference?
- On-chain staking enables you to participate in securing and validating a particular blockchain protocol of your choosing. The blockchain protocol incentivizes your participation by periodically distributing rewards to you.
- On the other hand, Earn allows you to receive rewards from us by simply allocating cryptocurrency that you already hold in your Shape Plain Capital Dollar Wallet to an Earn plan in the ShapePlainCapital.com App. For more information on Earn, please refer to this FAQ page.
You should carefully consider the features of both on-chain Staking and Earn (such as flexibility, rates of return, etc.) to determine which works best for you.inimum staking period.