Fantom is one of the prominent layer-one blockchains, known for its fast transaction processing and low fees, attracting many investors and users. If you own FTM and want to leverage this asset to earn passive income, staking Fantom is an ideal option. Staking FTM allows you to earn rewards from the network while contributing to the security and stability of the blockchain. In this article, >Financial Insight Daily will guide you on How To Stake Fantom in a simple and effective way, helping you maximize your cryptocurrency profits.>
What is Fantom Staking?
Fantom staking is the process of securing the Fantom blockchain by locking FTM tokens. This is done by validators, who validate transactions using their staked tokens, providing an economic incentive to follow the protocol’s rules. Validators are required to lock at least half a million FTM tokens to prevent Sybil attacks on its consensus mechanism.>
Fantom uses a unique consensus mechanism called Lachesis, an improved version of Proof of Stake. Lachesis is an asynchronous Byzantine Fault Tolerance (aBFT) system that uses a directed acyclic graph (DAG) algorithm. This provides security for Fantom’s second layer, called Opera. Opera is where decentralized finance (DeFi) applications and other decentralized applications (DApps) are developed, offering a stable and efficient environment for transactions and activities within the Fantom ecosystem.>
How to Stake FTM
Staking FTM on the Fantom network is a simple process. Follow these steps:>
- Steps 1: Ensure you have at least 1 FTM token available to stake.>
- Steps 2: Visit the official Fantom staking page and click on “Stake.”>
- Steps 3: Use a compatible wallet like MetaMask to log in.>
- Steps 4: Navigate to the staking section within your wallet.>
- Steps 5 : Choose a validator and the amount of FTM to stake.>
- Steps 6: Decide on the lock-up period for your FTM tokens. The minimum lock-up time is 0 days, allowing you to earn the basic reward rate, while the maximum lock-up is 365 days, yielding the highest reward rate.>
Is it safe to stake FTM?
Staking FTM is safe, as validators do not have access to your staked FTM tokens. However, there is a certain risk that you may lose part of your staked tokens if the validator is untrustworthy or behaves incorrectly. To ensure safety, choose reputable validators with strong communities, clear websites, and active Twitter accounts.>
If you wish to withdraw your staked tokens before the lock-up period ends, you can do so, but you should be aware that a penalty fee will apply for doing so.>
What is the best Fantom wallet?
Since the Fantom Opera layer is compatible with EVM (Ethereum Virtual Machine), you can use any wallet that supports Ethereum, including popular wallets such as:>
- MetaMask
- Coinbase Wallet
- Trust Wallet
- Ledger (cold wallet)>
How to Run a Fantom Validator Node
To run a Fantom validator node, the minimum staking requirement is 500,000 FTM. According to Fantom, running a node involves a five-step process:>
- Step 1: Launch a cloud instance, where you can run the node either on your own hardware or via a cloud provider.>
- Step 2: Set up a non-root user. This is a technical step where you must adjust certain technical settings.>
- Step 3: Install the necessary tools required to run the node.>
- Step 4: Register the validator by creating a validator wallet.>
- Step 5: Run the validator node.>
The rewards for validators include a regular APY (Annual Percentage Yield) based on the amount staked, and a 15% delegation fee from delegators. The APY varies depending on the percentage of the total FTM supply that is staked.>
How Much Can You Earn from Staking FTM?
The minimum reward you can earn from staking FTM is >5.01% if you choose the minimum lock-up period (14 days) and the minimum amount. The current maximum APY (Annual Percentage Yield) is 15.31%, which is available for the maximum lock-up period of 365 days.>
How to Stake Other Tokens on Fantom
Fantom boasts a vibrant DeFi ecosystem, enabling users to stake various DeFi tokens and earn passive income. Below are some of the most profitable Fantom protocols for staking:>
- SpookySwap : SpookySwap is a decentralized exchange (DEX) that operates on its native BOO token. Users can choose from various DeFi components such as token swaps, yield farming, and liquidity provision. BOO can be staked in single staking pools or paired with FTM to provide liquidity and yield farm.>
- Beethoven X : Beethoven X is an Automated Market Maker (AMM) offering a range of investment products, including weighted investment pools, stable pools, and token swaps. The BEETS token offers an attractive 31% APR for stakers.>
- QiDao: QiDao is a decentralized lending protocol that allows users to mint stablecoins based on provided collateral. QiDao offers a variable APR depending on the lock-up period, with the possibility of earning for up to four years.>
- Scream: Scream is a decentralized lending protocol, similar to Compound, Cream, and Aave. Staking SCREAM tokens can provide an estimated 58% APR, while liquidity providers can earn up to 82% APR.>
- Geist Finance: Geist Finance is a decentralized non-custodial liquidity market protocol that distributes 50% of its revenue to stakers of GEIST tokens. The APR for staking GEIST is currently around 118%.>
- Tarot: Tarot is a decentralized liquidity market protocol similar to Geist Finance and Scream. Liquidity providers can earn returns by locking their TAROT tokens in vaults. Staking TAROT for xTAROT provides an estimated 21% APR.>
Staking FTM on the Fantom blockchain offers an excellent opportunity to earn passive income while supporting the security and stability of the network. By locking your FTM tokens, you become a participant in the blockchain’s consensus mechanism, contributing to its growth. With flexible lock-up periods ranging from a minimum of 0 days to a maximum of 365 days, you can tailor your staking strategy based on your financial goals.>