Question 1

How does staking work?

Accepted Answer

Staking is like putting your crypto to work. Instead of letting your tokens sit idle, you “lock them up” for a set period, and in return, you earn rewards. The more crypto you are staking, the more you are earning rewards. This is similar to earning interest in a savings account from your usual bank. The difference is that when you stake your cryptocurrencies, you sort of lend them to the blockchain network to help it validate transactions and ensure security. Many Proof-of-Stake (PoS) blockchains like Ethereum, Solana, and Cardano rely on staking to stay secure and decentralized. It’s a popular way to earn passive income in crypto, but keep in mind that some staking platforms have lock-up periods and crypto prices can fluctuate, adding some risk.

Question 2

How are rewards calculated?

Accepted Answer

Staking rewards are calculated based on several factors. 1. Amount of crypto staked: The more tokens you lock up, the higher your chances of earning rewards, as you're contributing more to the network. 2. Staking duration: Some blockchains reward users for how long they've staked their tokens. The longer your tokens are locked in, the more rewards you can earn. 3. Total staked in the network: The overall amount of crypto staked by all users affects your rewards. If a lot of tokens are staked, rewards per person may decrease because they're divided among more participants. 4. Inflation rate or network incentives: Some networks adjust rewards based on token inflation or to incentivize participation. For example, newer blockchains might offer higher rewards to encourage more users to stake. 5. Validator performance: On networks like Ethereum, rewards can depend on the performance of the validator you're staking with. A validator with high uptime and accuracy will generate more rewards. Each blockchain has its own formula, but these are the most common factors. You can research your specific staking platform to understand how rewards are calculated and any associated risks. In the Venga app, you can see how much you'll get for staking your crypto by looking at the RPY.

Question 3

How long do I need to lock my assets?

Accepted Answer

RPY stands for Rewards Per Year. It shows you how much you can earn from staking your crypto, presented as a percentage of the total value of your staked assets. This rate is expressed on a yearly basis so that you can effectively compare all crypto staking options on the same level, as locking periods may vary. In other words, let’s say that the RPY is the “interest rate” you get by staking your crypto, quite similar to the one from your savings account.

Question 4

Is staking risky?

Accepted Answer

Yes, crypto staking has some risks. Here's what you need to watch out for: 1. Price changes: The value of the crypto you're staking can go up or down. Even if you're earning rewards, a big drop in the token's price could mean you lose money overall. 2. Lock-up periods: When you stake, your tokens are often locked up for a set time, meaning you can't sell or move them. If the market dips while your tokens are locked, you could be stuck. 3. Slashing: On certain networks, like Ethereum, if the validator you choose makes mistakes or breaks the rules, a portion of your staked tokens could be taken as a penalty, which is called “slashing.” 4. Validator issues: If you're staking through a third-party validator, you're relying on them to perform well. If they go offline or mess up, your rewards could shrink, or you might lose part of your stake. 5. Liquidity problems: Depending on the platform, it might take some time to access your staked tokens, especially during network congestion or when the market is moving fast. While staking is a great way to earn passive income, it's important to understand these risks and do some research before locking up your crypto.

Question 5

What cryptocurrencies can I stake on Venga?

Accepted Answer

On the Venga app, you are able to stake your ETH for now, but MATIC will be available soon as well. We'll be adding more cryptocurrencies for staking in the following months, stay tuned.

This website uses cookies

Start growing your crypto with staking

What is crypto staking?

User-Friendly

Secure

Rewarding

Why earn with venga?

unleash the power of your assets and earn great rewards

Get in

Stake

Earn

Earn faq

How does staking work?

How are staking rewards calculated?

What’s RPY?

Is staking risky?

What cryptocurrencies can I stake on Venga?