SOL and AVAX Staking with CYBAVO

Posted on Apr 19, 2022 | BLOG


CYBAVO is excited to announce our support for Solana and Avalanche staking! In a few simple steps, users can begin earning up to 15% passive income, with assets remaining securely in CYBAVO VAULT.

With the addition of these two blockchains, CYBAVO users can now stake DOT, TRON, KSM, SOL, and AVAX. By Summer 2022, CYBAVO users will be able to stake ATOM and LUNA as well.

What is Staking?

Staking is available on blockchains that use a Proof-of-Stake (PoS) consensus algorithm to validate transactions (as opposed to Proof-of-Work like Bitcoin). Validators create and run a node on the blockchain network, and lock up a certain amount of assets as a stake.

When the validator is chosen, they get to confirm the next block on the blockchain and earn the associated rewards. The more assets delegated as a stake, the more likely they are to be chosen as a validator. The stake and rewards are used as an incentive mechanism to ensure validators behave appropriately: confirming valid transactions are rewarded with tokens, while confirming invalid or fraudulent transactions results in slashing, where part or all of the delegated stake is taken as punishment.

Crypto owners that aren’t validators can also participate and earn rewards by delegating their stake to validators. Those who delegate their stake in this way are called delegators or nominators, and rewards earned by the validator will be shared with them.

Institutional Staking Issues

Staking assets is a great way to generate passive revenue, but current staking options are a barrier to entry for institutions.

Running internal staking operations as an institution can be cost-prohibitive, as it requires a dedicated engineering team to establish and maintain the infrastructure. As more blockchains support staking operations, more resources are needed, given each blockchain has different requirements for staking and different risks to mitigate.

This leads to companies enlisting custodians, third-party staking providers, or even centralized exchanges as an alternative route to staking their assets. Leveraging these services means managing assets across multiple platforms, introducing operational complexity and making it cumbersome to reallocate staked assets and rewards. These services also charge fees that eat into staking revenue.

Lastly - underpinning all enterprise-level operations should be a private key management system that provides both flexibility and security. Private key use must be flexible enough to enable teams with their work, while being secure enough to mitigate inappropriate use of funds.

For companies wanting to earn passive income, CYBAVO provides a better way to stake.

Staking with CYBAVO

CYBAVO customers can stake Avalanche, Kusama, Polkadot, Solana, and TRON from the safety and security of their CYBAVO VAULT - earning staking rewards without dedicating resources or fragmenting operations.

Staking with CYBAVO provides the following benefits:

Turnkey Staking: CYBAVO users can immediately begin earning passive income without dedicating any time or engineering resources to set up and maintain staking operations.

Complete Security: Staked assets never leave the VAULT wallet, providing the security of process-oriented transaction authorization, granular policy definition, and transparent oversight. Every step of the staking process - staking assets, delegating votes to validators, claiming rewards, unstaking assets - is governed by customizable approval policies to guarantee operational integrity and security.

On-Chain Collateralization: Staking operations are risk-free, as staked assets are directly collateralized to validators on-chain. This is in contrast to DeFi staking, which includes the risk of smart contract vulnerabilities, rug pull schemes, flash loan attacks, etc.

Streamlined Operations: Running staking strategies on the same platform as other digital asset management operations means less complexity, and makes it easy to reallocate staked assets and rewards earned.

Commission-Free Rewards: We don’t charge additional fees or take commission on any rewards earned, so staking revenue is fully maximized.

Get in touch with us today to learn how to begin earning passive income - quickly, easily, and securely!

*We are always improving our product offering. If you are a blockchain infrastructure provider, we want to hear from you, too!