DeFi is arguably the most rapidly growing industry within the crypto domain, where fortunes are made overnight, and winners either take it all home or leave with nothing. However, even DeFi is not exempt from the harsh state of the bear market, where virtually everyone is asking why crypto is crashing?
On-chain analysis showed that even the most seasoned holders were selling into the downturn. Right now, almost all Bitcoin HODLers are holding massive unrealized losses, worse than that of the March 2020 crash.
But is there a better way to make a bank in the current conditions, apart from holding your assets in the long run? The short answer is yes, and today we will discuss how one might do it and what projects are the most suitable for such a strategy.
Liquid Staking
Liquid staking is a perfect mixed strategy that allows you to remain accessible to your funds even when they are being put into the staking pool. Although the funds remain in escrow, they aren’t “locked” and inaccessible as they would be with Proof-of-Stake (PoS) staking.
In traditional staking, you stake coins, and you have to lock them up for a specified period, during which time you cannot sell or transfer them. This means that even if the crypto market is crashing during your lock period, you won’t be able to act promptly. Liquid staking, however, offers the best of both worlds: a passive income and access to your staked funds, which you can add and remove as you please.
CashFi is Going Places
CashFi (CFI) is an exciting new project that aims to provide investors with the best and most diverse investment options currently available on the market. It is a decentralised network protocol that plans to improve crypto world interconnection and cooperation.
One of the main reasons Andre Cronje, the creator of Yearn Finance and Keep3rV1, left the DeFi industry was due to his disenchantment with the lack of interoperability and collaboration between various DeFi layers and projects. CashFi (CFI) attempts to resolve these issues by bringing together the DeFi industry and the larger blockchain ecosystem to provide more cost-effective, rapid, and scalable services to its users across the board.
At the heart of the CashFi ecosystem is the (CFI) ERC-20 token, which offers different applications and benefits. This platform’s native token (CFI), staking, unlocks liquidity for a higher yield, where users are 100% in control of their assets and can withdraw them anytime. On top of that, the network will also include a cross-chained (CFI) NFT marketplace, where unique NFTs would be available for minting.
If you are tired of HODLing your assets when the crypto market is crashing, you should seriously consider liquid staking with the CashFi project. The opportunity to earn a passive income while being in control of your assets is not a situation readily found elsewhere.
Watchful Protector With Benefits
The launch of the Beacon Chain network in December of 2021 introduced the first iteration of protocol-level staking for Ethereum (ETH) investors. Staking on Ethereum is a process of locking up 32 (ETH) for a specified period to contribute to the security of the blockchain and earn network rewards.
People who engage in this activity are called validators tasked with processing transactions, storing information and adding blocks to the Beacon Chain, which happens to be the new consensus model of Ethereum. Validators receive interest on their staked coins in (ETH), the platform’s native currency as a reward for their active involvement in the network.
The reward distributed to validators directly depends on two factors: the number of (ETH) staked and the number of validators on the network. Unlike in liquid staking, validators on Ethereum can only withdraw staked funds and accrued rewards when the locking period expires.
The Upshot
In the long run, validating on Ethereum would bring many benefits to HODLers of (ETH), considering you have enough capital to invest and the long-anticipated upgrade ‘The Merge’ will arrive without complications. In the meantime, the CashFi project looks like a perfect investment opportunity, but you only have until the end of summer because its final presale stage will run out in September.
Ethereum
- Website: https://ethereum.org/en/
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