Cryptocurrency
What is stacking and how to earn on it?
Stacking is a way of earning passive income from cryptocurrencies based on the Proof-of-Stake (PoS) consensus algorithm and its variants.
The essence of Stacking is to block a certain amount of coins in a wallet to get the right to participate directly or through intermediaries in the maintenance of the blockchain of a given asset and receive compensation for it. Stacking has a similar role in PoS-blockchains as mining in the bitcoin network.
Stacking appears to be a profitable alternative to simply holding cryptocurrencies in a wallet, being analogous to a bank deposit in the crypto industry. Stacking returns vary depending on the blockchain and can be as high as tens of percent per annum or higher.
What is Proof-of-Stake (PoS) and how does it relate to stacking?
Proof-of-Stake is a consensus mechanism in which the right to generate new blocks, verify transactions, and include them in the blockchain according to a certain algorithm is played out between computing nodes based on how much of a given blockchain’s coins they own.
In a basic scenario, a node that owns 1% of all coins in circulation receives the right to process 1% of the blocks, and for its work it receives 1% of all rewards of the network. However, many cryptocurrencies also consider the tenure of coins and other factors. Stacking is getting the very reward for producing new blocks and verifying data with its share (native coins).
How does stacking work in Proof-of-Stake?
In “classic” PoS cryptocurrencies, each official wallet acts as a full node, meaning it verifies and validates transactions and produces new blocks.
Technical requirements differ from one blockchain to another: some networks only need a home computer to deploy and manage a node, while others require professional server hardware. In this way, the blockchain is decentralized and secure without the huge energy costs inherent in Proof-of-Work consensus cryptocurrencies.
The terms of participation in stacking may vary. The general mechanism is to buy the native coin you want to participate in stacking and send it to a smart contract yourself (e.g., through a wallet) or pass it to a validator.
Depending on the speed of coin issuance, stacking yields can reach tens or hundreds of percent. At the same time, it is a way of issuing cryptocurrencies, so too high a rate of reward can lead to coin inflation, which will have a negative impact on profits.
Who are the stacking providers?
Stacking is a popular strategy for investing in digital assets. However, setting up a node or stacking in an individual crypto project can be quite time-consuming.
Therefore, special platforms that provide all-in-one stacking services have become widespread in the cryptocurrency market. They are applications where users can simply send their funds to various pools via the provider’s wallet.
Stacking providers also analyze the current profitability of stacking in the selected network and show other necessary data. Stacking platforms make it as easy as possible for users by charging a small commission on the compensation they receive.
What are the risks of stacking cryptocurrencies?
Stacking appears to be a profitable and relatively safe alternative to simply storing cryptocurrencies in a wallet, promising returns that can be substantial. However, there are a lot of risks that can significantly reduce expected returns and even lead to losses:
- Since stacking participants earn income in coins of a given cryptocurrency, fluctuations in its exchange rate affect the value of invested funds and the actual stacking returns;
- The high stacking yield offered by some PoS-cryptocurrencies (tens and hundreds of percent annually) is achieved due to the high speed of coin issuance. This often leads to a rapid drop in the market price of the coin and a rapid depreciation of the investment in this cryptocurrency;
- Requirements for stackers may include blocking of coins for a period ranging from several days to several months. During this period, the owner cannot withdraw and sell their coins;
- stacking cryptocurrencies using stacking providers carries all the risks associated with trusting a third party, which may be subject to a hacker attack or misappropriate assets collected from stackers.
Cryptocurrency
Bitunix Enters Top 15 on CoinGecko Rankings, Achieving Milestone in the First Week of September 2024
[PRESS RELEASE – Dubai, United Arab Emirates, September 9th, 2024]
Bitunix, a rapidly growing player in the cryptocurrency exchange market, has made a significant leap by ranking as the 13th global exchange on CoinGecko, categorized by trust score on September 2, 2024. This milestone comes on the heels of Bitunix unveiling its reserves through the implementation of Proof of Reserves (PoR), a move that has set a new standard for transparency in the industry.
By disclosing the Proof of Reserves, Bitunix has solidified its reputation as one of the most secure, liquid, and transparent derivatives exchanges worldwide. The exchange has established its place amongst some of the most eminent names in the crypto industry.
Source: CoinGecko
Factors Behind Bitunix’s Growth
The crypto industry comprises of 1,000+ exchanges, making it a saturated market to break in. Bitunix, one of the fastest growing crypto derivatives exchanges, climbed up the ladder by adopting different practices required to maintain a transparent and secure environment for all kinds of traders.
Bitunix’s PoR initiative reassures users that their funds are backed by real, verifiable reserves, setting a benchmark for accountability. Besides a secure platform, the exchange also allows users to execute trades directly on the chart with minimal effort, making the user experience phenomenal. In addition to this, Bitunix also accounts for high liquidity across 250+ trading pairs and 24*7 customer support.
A Testimony For Crypto Users
CoinGecko’s Trust Score, evaluates exchanges based on factors including transparency, security, and liquidity. Achieving a high rank on CoinGecko, a trusted and widely respected platform in the cryptocurrency space, is more than just a number; it can signify a vote of confidence from the broader crypto user base and communities.
These rankings collectively reinforce Bitunix’s reputation as a reliable and user-centric exchange. With the launch of PoR, Bitunix joins the ranks of other trusted exchanges such as Bybit, OKX, and Bitget, further establishing its credibility and appeal. In fact, this success comes along with another of Bitunix’s great achievements in such a short time, which is to surpass 1 million users.
There are other platforms and rankings that are also validating Bitunix’s achievements, either by showing the exchange’s proof of booking, ranking it at the top of the rankings, etc. Some of these platforms are Coinmarketcap and DeFiLlama.
This achievement highlights the progress Bitunix is making in its commitment to becoming the world’s leading derivatives exchange. With every milestone, Bitunix brings users closer to an environment where trading is effortless, secure, transparent, and increasingly liquid. Moreover, as the company itself points out on its social media, this is just the beginning, as 2024 still brings major releases that they claim will revolutionize the way cryptocurrency trading is done to date.
About Bitunix
Bitunix is a global crypto derivatives exchange founded in 2021, and dedicated to offering intelligent, social, highly secure, and cost-effective trading services to its users. Bitunix specializes in both crypto spot and perpetual futures trading, boasting more than 250 trading pairs with up to 125x leverage.
With attributes such as best liquidity, 24/7 customer support, and a strong commitment to regulatory compliance, Bitunix remains at the forefront of delivering a reliable trading experience for the global crypto community. Bitunix has attracted over 1,000,000 users from 100+ countries and has facilitated a cumulative daily trading volume that exceeds $1 billion on the platform.
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Agile Energy X – a company incorporated in Tokyo, Japan, and a subsidiary of the Tokyo Electric Power Company (TEPCO), is reportedly tapping into Bitcoin mining.
According to recent coverage, the firm looks to expand its capabilities through Bitcoin mining, banking that it can prevent waste of excess renewable energy.
It’s important to note that TEPCO is the largest electric utility company in Japan and also the 4th largest in the world.
Speaking on the matter was Kenji Tateiwa, president of Agile Energy X Inc., who said:
What we are doing has few parallels in Japan. Success of our framework would prompt more green energy to be introduced.
The executive also shared that he got the inspiration all the way back in 2018, when major issues concerning “output power control,” were brought up. The Bitcoin mining initiative would help energy producers to control their output through multiple means, such as temporarily halting power generation and using up the oversupply. This is especially relevant for photovoltaic power because its generation peaks during the daytime.
That being said, the company is yet to start mining Bitcoin. Tateiwa has proposed this new in-house project and the idea will be thoroughly tested through multiple demonstrations.
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Cryptocurrency
Yield Farming and Auction Focused Pencils Protocol Reached $80M Post-Money Valuation in Its Recent Funding
[PRESS RELEASE – Singapore, Singapore, September 9th, 2024]
Yield Staking and Auction-focused Pencils Protocol announced the successful completion of its strategic round of fundraising, which has propelled to an impressive $80 million post-money valuation. This round was led by Taisu Ventures, DePIN X, Bing Ventures, and Black GM Capital etc.
Pencils Protocol has been on a mission to revolutionize the decentralized finance (DeFi) landscape. With innovative products like Farming, Vaults, and Auctions, Pencils Protocol created a platform that not only offers robust financial tools but also empowers users to take control of their financial future. Their success is rooted in the support of the community — over 400,000 active users and a staggering $300 million in Total Value Locked (TVL) demonstrate the impact they have made in the DeFi space.
“We believe Pencils Protocol is well-positioned to contribute meaningfully to the growing Scroll ecosystem. Their use of Scroll’s zero-knowledge technology, combined with a focus on scalable and private DeFi services, aligns with our strategy of supporting innovative infrastructure in the Layer-2 space. Pencils Protocol’s offering of auction services, yield aggregation, and restaking presents a practical solution for enhancing asset utilization. We are confident in their ability to create value within the Scroll ecosystem through a measured, technology-driven approach.” — Takashi Hayashida, Managing Partner at Taisu Ventures
Moving forward, Pencils Protocol is thrilled to share the launch of its latest innovations: advanced multi-strategy Vaults, dynamic Auction and Shop products. These tools are designed to offer more sophisticated strategies for yield optimization and facilitate dynamic bidding for high-value assets across both Web2 and Web3, contributing further to the protocol’s goal of enhancing asset utilization within the DeFi space.
About Pencils Protocol
Pencils Protocol is a next-generation decentralized platform offering innovative DeFi solutions, including leveraged yield aggregation, auction services for blockchain and real-world assets (RWAs) and more. In partnership with Scroll, Pencils Protocol leverages zero-knowledge technology to enhance the scalability, privacy, and fairness of decentralized applications.
Website: http://pencilsprotocol.io
Medium: https://medium.com/@PencilsProtocol
Twitter: https://x.com/pencilsprotocol
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