The article, “Guide to Staking on ChaiDEX,” penned by Richard Adrian and published on March 7, 2024, dives into the essentials of staking and minting in the ChaiDEX ecosystem. ChaiDEX introduces a Proof of Stake (PoS) consensus, allowing crypto holders to earn profits without the need for extensive computing resources, marking a shift from traditional mining methods. As a decentralized exchange (DEX), ChaiDEX differentiates itself by offering cross-chain, peer-to-peer transactions without the need for token bridges, contrasting with both centralized exchanges like Binance and Coinbase and other DEXs that rely on token bridges. ChaiDEX aims for a fully decentralized trading experience, enhanced by its user-friendly, non-custodial platform.
Staking on ChaiDEX involves depositing stablecoins into a liquidity pool, where rewards are distributed in USD-based stablecoins. The platform specifies a 90-day cooldown period for stakers before they can unstake, ensuring fairness and supporting community governance. ChaiDEX retains a 0.1% fee from transactions, with 50% of returns going to stakers and the rest to a buyback and burn program, promoting token stability.
Additionally, ChaiDEX encourages the minting of local stablecoins in various jurisdictions, including India and the Philippines, allowing users to stake and earn in familiar currencies. This process is designed to maintain stablecoin stability, prevent inflationary pressures, and mitigate risks like undercollateralization. The integration of staking and minting aims to create a sustainable, stable, and user-centric ecosystem, fostering growth and stability. The article concludes by highlighting staking as a popular method for earning passive income, with a significant portion of crypto holders participating in staking pools for potential rewards and transaction fee discounts.
To dive deeper, check out the complete article:
https://droomdroom.com/guide-to-staking-on-chaidex/
