FUSD Coin Staking 2024

Fantom USD (FUSD Coin) operates as a stablecoin on the Fantom blockchain. Key features include its stability, maintained through a 1:1 peg to the US dollar, and its decentralized model

Fantom USD staking is a process of locking up FUSD coins in a blockchain network to secure the network and earn rewards. When you stake FUSD, you essentially lend your coins to the network in exchange for a share of the transaction fees generated by the network.

In this article our experts explain the process of FUSD staking and provide its benefits and risks.

Benefits of Staking FUSD

Staking FUSD on the Fantom blockchain offers a range of benefits for token holders:

✅ Earning passive income:

Staking FUSD allows you to earn rewards in the form of additional FUSD tokens. These rewards are generated from transaction fees on the Fantom network. The amount of rewards you earn will depend on the amount of FUSD you stake and the staking platform you choose.

✅ Supporting the Fantom ecosystem:

By staking FUSD, you are helping to secure and decentralize the Fantom blockchain network. This makes the network more resistant to attack and helps to ensure its long-term viability.

✅ Influencing network governance:

As a FUSD staker, you will be able to participate in the network’s governance process. This means that you will have a say in decisions about how the network is developed and operated.

✅ Access to staking rewards:

Staking FUSD is a relatively low-risk investment with the potential for high returns. The APY (annual percentage yield) for FUSD staking can range from around 3% to 15% or higher.

✅ Diversification of your investment portfolio:

Staking FUSD can provide a new source of income and diversification for your investment portfolio. This can help to reduce your overall investment risk.

Risks of Staking FUSD

Staking FUSD on the Fantom blockchain is a relatively safe and secure investment, but there are some potential risks that you should be aware of. These risks include:

❌ Regulatory risk:

Regulatory risk is the risk that new regulations could make it more difficult or impossible to stake FUSD. This could happen if regulators decide that staking is a form of gambling or if they impose new rules on cryptocurrency exchanges.

❌ Network risk:

Network risk is the risk that the Fantom blockchain network could be attacked or experience a technical outage. This could result in you being unable to access your staked FUSD tokens.

❌ Smart contract risk:

Smart contracts are pieces of code that automate the execution of transactions on the blockchain. There is a risk that a smart contract could be buggy or vulnerable to attack, which could result in you losing your staked FUSD tokens.

The risks of staking FUSD are relatively low compared to the potential rewards. However, it is important to be aware of these risks before you decide to stake your tokens.

How to Stake FUSD?

Here are the steps on how to stake FUSD :

• Create a Fantom-based wallet: There are a few different Fantom-based wallets available, such as MetaMask and Trust Wallet. Once you have created a wallet, you will need to add the FUSD token to your wallet. The wallet must support Fantom network.
• Transfer FUSD to your wallet: You can transfer FUSD from an exchange or another wallet to your Fantom-based wallet.
• Choose a staking platform: There are a few different staking platforms available for FUSD, such as fWallet and DeFi Kingdoms. Once you have chosen a staking platform, you will need to create an account and connect your Fantom-based wallet.
• Select your staking options: Most staking platforms offer a variety of staking options, such as flexible staking, locked staking, and delegated staking. The type of staking option you choose will depend on your individual needs and preferences.
• Submit your stake: Once you have selected your staking options, you will need to submit your stake. The platform will then automatically stake your FUSD for you.
• Monitor your rewards: You can monitor your staking rewards on the staking platform’s website or app.

Where to Get FUSD?

FUSD, or the stablecoin of Fantom, can be obtained through a variety of channels. While the most common method is to purchase it through cryptocurrency exchanges, you can also obtain it through decentralized exchanges or through staking.

Cryptocurrency exchanges

The most common way to buy FUSD crypto is to use a cryptocurrency exchange. The majority of the largest cryptocurrency exchanges offer FUSD as a trading pair. Here are a few of the most popular options: Binance, Kucoin, Kraken, Huobi Global, Crypto.com.

Decentralized exchanges (DEX)

Decentralized exchanges are peer-to-peer platforms that allow users to exchange cryptocurrency without intermediaries. DEXs are a good option for users who want to avoid the fees associated with centralized exchanges.

Some of the most popular DEXs that support FUSD trading include SpookySwap, SushiSwap, QuickSwap, SpiritSwap, Curve Finance.

Which Fantom-based Wallet to Choose?

Here’s a breakdown of some popular choices:

✔️ MetaMask:

MetaMask is a widely used and well-established non-custodial wallet that supports numerous blockchain networks, including Fantom.

It’s available as a browser extension and a mobile app. MetaMask offers a user-friendly interface and integrates seamlessly with various decentralized applications (DApps) on the Fantom network.

✔️ Ledger Nano S/X:

Ledger Nano S and Ledger Nano X are hardware wallets providing an extra security layer for your Fantom assets. They store your private keys offline, making them inaccessible to online threats.

Ledger Nano S is a more affordable option, while Ledger Nano X offers Bluetooth connectivity for greater convenience.

✔️ Coin98 Wallet:

Coin98 Wallet is a multi-chain wallet that supports Fantom and numerous other blockchains. It provides a comprehensive suite of features, including staking, token swapping, and NFT management.

Coin98 Wallet offers a user-friendly interface and is available as a browser extension, mobile app, and desktop app.

✔️ MathWallet:

MathWallet is another multi-chain wallet that supports Fantom. It stands out for its cross-chain compatibility, allowing you to transfer assets between different blockchains seamlessly.

MathWallet offers a secure and user-friendly interface and is available as a browser extension, mobile app, and desktop app.

The choice of wallet depends on your individual preferences and security needs. MetaMask is suitable if you prioritize ease of use and compatibility with various DApps.

For enhanced security choose hardware wallets like Ledger Nano S or Ledger Nano X. And for a wider range of features and cross-chain capabilities choose wallets like Coin98 Wallet or MathWallet.

Staking Platforms for FUSD Coin

There are a number of staking platforms available for FUSD, each with its own advantages and disadvantages. Here are a few of the most popular options:

fWallet is a popular staking platform for FUSD. It offers a variety of staking options, including flexible staking, locked staking, and delegated staking. fWallet also offers a high APY, which is the annual percentage yield that you earn on your staked FUSD.

DeFi Kingdoms is another popular staking platform for FUSD. It is a gamified DeFi platform that offers a variety of staking options, including single-sided staking, double-sided staking, and liquidity pool staking. DeFi Kingdoms also offers a high APY, making it a popular option for earning passive income on FUSD.

SpiritSwap is a decentralized exchange (DEX) that also offers staking for FUSD stablecoin. It offers a variety of staking options, including single-sided staking, double-sided staking, and liquidity pool staking. SpiritSwap also offers a competitive APY.

Curve Finance is a decentralized exchange that specializes in stablecoin lending and borrowing. It offers a variety of staking options for FUSD, including single-sided staking, double-sided staking, and liquidity pool staking. Curve Finance also offers a competitive APY.

The best staking platform for you will depend on your individual needs and preferences. fWallet or DeFi Kingdoms are good options if you are looking for a platform with a high APY, and SpiritSwap or Curve Finance are good options if you are looking for a platform with a variety of staking options.

Staking Options

There are three main types of staking options available for FUSD:

• Flexible staking: With flexible staking, you can unstake your FUSD tokens at any time without penalty. This is a good option for users who want to be able to access their funds quickly.
• Locked staking: With locked staking, you agree to lock up your FUSD tokens for a specified period of time. In exchange, you will receive a higher APY (annual percentage yield) on your rewards.
• Delegated staking: With delegated staking, you delegate your FUSD tokens to a validator who will stake them on your behalf. This is a good option for users who do not want to manage their own staking node.

The specific staking options and rewards available will vary depending on the staking platform you choose. However, all staking platforms will offer a way to earn passive income on your FUSD tokens.

For more information, we have prepared an article for you explaining what crypto staking is in detail.

Conclusion

FUSD staking is locking up your FUSD tokens on the Fantom blockchain to earn rewards. By staking, you are helping to secure the network and earn passive income in the form of additional FUSD tokens.

There are three main types of FUSD staking: flexible, locked, and delegated. To stake FUSD, you must create a Fantom-based wallet and transfer your FUSD tokens to it.

Staking FUSD coin is a safe and secure way to earn passive income while supporting the Fantom ecosystem. However, it’s important to weigh the potential rewards against the risks involved, such as impermanent loss and counterparty risk.

Moreover, staking, selecting the right network, and finding the suitable extension of a wallet could be challenging for new crypto users. A specific knowledge is required to be successful and avoid costly mistakes.