THORchain Staking Overview
THORChain (RUNE) is a decentralised liquidity protocol built on blockchain technology. The network is organised by an anonymous group of developers compensated for holding the platform’s native coin RUNE. THORchain allows users to swap assets between blockchains without permission or centralised exchanges.
This article will explain how to stake THORchain in four simple steps.
How to Stake THORchain (RUNE)
Step 1 - Choose A Platform For Staking RUNE
THORchain is a popular network among users in the crypto space. Its native coin RUNE is available for staking in many exchanges and wallets. A few widely used exchanges and wallets for staking RUNE are Binance, Coinbase, Gate.io, RUNEvault, Guarda Wallet and Trust Wallet. The platforms offer different locking periods and yield percentages. You must research the features, security, ease of use, and reputation of the platform before staking your RUNE coins.
Step 2 - Buy Or Transfer Your Coins
After choosing the platform, you must register yourself with the platform to start buying RUNE. You would have to deposit some funds in the platform account. RUNE may not be available with your fiat currency, so you must buy USDT first, then buy RUNE in the spot trade section. You can also transfer existing RUNE coins from another source.
Step 3 - Skate Your RUNE Coins And Start Earning
If you use a centralised exchange like Binance or Gate.io to stake your RUNE coins, navigate to the earn and staking section of the exchange to search for RUNE. When you find the option, evaluate the terms and yield percentage of the staking program for RUNE. Then apply for the program by entering the amount you want to stake and setting the period you want the coins locked in.
Step 4 - Connect Your Decentralised Platform To A Wallet
Finally, if you are using a decentralised platform like THORswap, you will have to connect your wallet, which has RUNE coins, with the platform. Ensure the wallet is compatible with RUNE and has enough coins to cover the transfer and staking fees. Now on the THORswap site, click staking and connect your wallet by granting the permissions. After connecting, check the staking APY and enter the amount you want to stake. Note that the coins will not leave the wallet but will be staked with the program, and you will earn the rewards.
Also read: THORchain Prices Live
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Best Places To Stake THORchain (RUNE)
Binance is the largest cryptocurrency exchange in the world. It is considered one of the safest places to stake RUNE coins. The platform has a low fee structure and a wide range of features in staking options. It offers a competitive yield percentage with various locking periods.
- Provides flexible features for staking
- Offers more generous rewards for staking
- Offers liquidity farming with advanced features and low fees
- Beginners may need clarification while navigating through the stake and earn option.
- After locking up your coins, you can only access them after the stated staking period.
THORswap is a decentralised exchange (DEX) built on the THORChain protocol. It leverages the liquidity pools made by the THORchain network to provide an efficient trading experience to users. Using RUNE, it enables the cross-chain trading of different cryptocurrencies.
- No intermediary is involved; you must connect your wallet and lock in your coins.
- Offers higher APY with the help of liquidity pools of THORchain.
- Some users needed help connecting their wallets.
- The transfer, staking and claiming of the reward, all these processes are subject to relatively high fees.
Gate.io is one of the top global centralised cryptocurrency exchanges. With crypto exchange, it has a specialised platform for Web3 activities, including wallets, trading, cross-chain, NFTs and DApps. It provides a seamless experience to earn passive income without switching platforms.
- The daily interest reward is directly added to your account wallet.
- Offers flexible terms for staking.
- The lock-up period for fixed-period staking prevents you from withdrawing the staked coins.
Benefits Of Staking THORchain (RUNE)
PDEX holders can earn rewards for staking their tokens, with the current APY being around 27%, which is higher than many other staking platforms.
By staking PDEX, holders can enjoy the features of the Polkadot platform while contributing to the growth and success of the Polkadex platform, which aims to provide a scalable, interoperable, and inclusive platform for traders, developers, and projects.
PDEX holders can participate in the decentralised governance model of the Polkadex and Polkadot network by proposing and voting on network upgrades, parameters, and policies. By staking PDEX, holders can influence the direction and future of Polkadex and Polkadot.
Frequently Asked Questions
What makes THORChain unique?
The THORchain network enables seamless cross-chain trading and provides continuous liquidity for trading. This helps the protocol solve the problem of “impermanent losses”. The network is built on the Tendermint consensus mechanism using the Cosmos SDK to protect against attacks.
What are the risks of staking RUNE?
The risk of staking RUNE is usually low if you choose a reputed platform with good liquidity. However, if we have to count out the possible risks, the price fluctuation of RUNE in the market is the major. Also, there is the factor of technical issues that may disrupt the staking.
Is THORChain Rune a good investment?
THORchain offers a unique utility of cross-chain interpretability of coins in the crypto space. When considering the network’s other features, the native coin of THORchain seems to be a good investment for long-term returns. Assuming that the network improves and develops with time, the RUNE coin is a good buy. Moreover, you can stake RUNE to earn interest.