What is Staking an NFT?

There are multiple ways of making revenue out of NFTs. It is not always about selling. Staking is also a fantastic way to make some coins. It is more of a passive way, making it perfect for passive earners.

What is staking an NFT? Staking is locking away your NFT assets in DeFi platforms. These platforms deal with decentralized finance and utilize smart contracts. The use of smart contracts eliminates the use of intermediaries.

Staking earns you rewards. The more the number of NFTs stacked, the more your rewards. Furthermore, while staking the value of your NFTs appreciates increasing interest. The process is somehow similar to crypto staking.

How Does NFT Staking Work?

You may wonder how rewards are given. Or even how does the system calculate the number of NFTs staked? When you purchase an NFT, your details are in the public ledger. The buying amount is also in the records for track keeping.

When you stake your NFT and don't resell it to anyone, you can know if its value is increasing. In turn, DeFi platforms get to reward you for this. The rewards are often in the form of cryptocurrencies.

Defi platforms utilize proof of stake blockchains to calculate the number of NFT staked. There is a minimum number of staked NFTs one must hold to receive rewards. The reward received also depends on the annual percentage yield. (APY).

To get started on staking, you only need a crypto wallet with NFTs. You should note that not all NFTs can be staked.

The Most Popular DeFi Platforms

Here are some of the most loved DeFi platforms. These decentralized finance platforms are fully secure and risk-free.

1) Aave

In this platform, traders can freely borrow and lend crypto. Thanks to smart contracts. These contracts are not your typical contracts. They lack tangibility and need intermediaries or third parties.

The main goal of Aave is to provide financial services equally to all traders. Moreover, it eliminates the need for banks and other systems. All these to improve the comfort of the trader.

2) Sushiswap

This DeFi platform solves liquidity problems by utilizing the Ethereum blockchain. It is based on the Uniswap chain. The native token of Sushiwap is Sushi, and its users are 'Defi chefs.'

Though stagnating at first, Sushiwaps revenues have tremendously increased. It also rewards NFT traders very well. Sushiwap is a platform that's proven to be one of the best.

3) PancakeSwap

PancakeSwap is a decentralized platform that’s part of the Binance Smart Chain. Its primary token, Cake, features a trading volume of 133 million dollars.

Recently introduced, the DeFi platform is for liquidity and mining purposes. Today PancakeSwap offers various NFT services as well. To top it up, no intermediaries or third parties are needed.

Conclusion

Staking is an excellent way to keep your income flowing. You don't have to go through the hassle of selling your NFTs. Besides, it doesn’t mean you lose your ownership.

You just become a passive owner. So take advantage of this time to create more NFTs. After all, we all know that the more, the merrier.