What is single-sided staking?
- Single-Ssided staking simplifies staking by requiring only one token type. It offers higher accessibility and efficiency with fewer transactions.
- Holders need only one token type to stake and earn rewards, avoiding impermanent loss.
- Like any investment, risks remain such as price swings and lockup periods. However, the rewards of Single-sided staking can outweigh the risks for some.
- HeliSwap's approach will provide an effortless staking experience for holding HELI tokens to generate passive income. Weigh risks versus rewards for your own tolerance before staking.
Staking has been a vital component of the cryptocurrency ecosystem since its inception. There are various meanings that come with the term of staking, which can be confusing and intimidating. In this article, we'll break down what Single-Sided Staking is.
What is Single-Sided staking?
Single-Sided Staking is a mechanism that allows users to earn staking rewards without having to provide a second token. This simplifies the overall staking process and reduces the cost of participation. In other words, Single-Sided Staking requires investors to hold only one type of token to participate in the staking process. Further, this means that impermanent loss is being omitted as we are only dealing with one type of currency. This makes it easier for users to adjust their investment strategy and react to changes in the market. Single-Sided Staking is here to keep things simple, and efficient.
Benefits of Single-Sided Staking
- It is simple: You only need to hold one type of token, which means no more complicated juggling acts.
- It is accessible: With just one token to hold, Single-Sided Staking opens up the possibility of earning rewards to a wider range of investors.
- It is efficient: Single-Sided Staking reduces the number of transactions needed to participate in the staking process, making it more efficient.
- It is sustainable: Single-Sided Staking eliminates the need to sell holdings to fund transaction fees, allowing investors to keep more of their tokens while earning rewards.
How to Participate in HeliSwap’s Single-Sided Staking?
To participate in Single-sided staking, users need to follow these steps:
- Connect to a compatible wallet such as Hashpack, Blade, etc.
- Navigate to the Single-Sided Staking page on HeliSwap.
- Select the native token you wish to stake and deposit it.
- Sit back and earn rewards on their staked tokens.
What about the Risks?
Like with any investment, there are risks to consider. One of the risks is price volatility. The lockup period is another risk factor to consider. Locking tokens up means that you will not be able to withdraw them for a predetermined period of time.
We highly recommend taking the time to assess your personal risk tolerance and research the risks associated with the staked token and platform. By doing so, you can make informed investment decisions and minimize your risks.
Single-Sided Staking is a method that simplifies staking and opens up more opportunities for crypto investors. However, make sure to weigh the risks and rewards before making any investment decisions. If you are looking for an effortless way to stake your tokens and earn rewards, Single-Sided Staking is worth considering.
HeliSwap's Single-Sided Staking
This feature will be available on HeliSwap very soon as stated on our roadmap, and it is going to work just like all the other Single-Sided Staking platforms work. HeliSwap's Single-sided staking will be super simple. All you need to do is hold HELI tokens in your Hedera-based wallet (Hashpack, Blade, etc) and connect it to the HeliSwap platform. From there, you can choose the amount of HELI tokens you want to stake and earn rewards. It'll be fully automated, so you can sit back, relax, and watch your rewards roll in.