Easiest Way to Stake Polygon (MATIC)

The post Easiest Way to Stake Polygon (MATIC) by James Wells appeared first on Benzinga. Visit Benzinga to get more great content like this.

While the value of cryptocurrencies has fallen dramatically because of the recent crypto bear market, the future isn’t completely gloomy for owners of digital assets. A crypto bear market can be a lucrative opportunity for investors to take advantage of their ownership through crypto staking. 

MATIC staking can be a phenomenal way to generate passive income on idle MATIC without having to sell. To earn interest, all you need to do is deposit MATIC for a predetermined amount of time. Although staking comes with risk of loss, if done correctly, it can be a fantastic source of passive income. The following discussion will explore the easiest ways to stake MATIC and discuss if you should do it.

Easiest Way to Stake MATIC TLDR:

Multichain crypto wallet Omni is the easiest way to stake MATIC; however, other notable methods include Lido and the use of centralized exchanges such as Binance. You can also stake on Lido through the Omni app. Centralized exchanges take a portion of your rewards, so the simplest approach to make the most from MATIC staking is Omni.

What is MATIC Staking?

Before diving into MATIC staking, it is important to understand how Polygon (MATIC) works. Polygon is a framework for creating scaling solutions for Ethereum and Ethereum-compatible blockchain networks. It is designed to increase the flexibility and scalability of a blockchain project while leveraging the interoperability, security and structural benefits of the Ethereum blockchain.

The Polygon Network is a Proof of Stake (PoS) sidechain. PoS is a type of cryptocurrency consensus mechanism that is responsible for processing transactions and creating new blocks in a blockchain. In a PoS model, validators stake capital in the form of MATIC to contribute to the security of the network, earning rewards in return for their locked capital. If a validator acts dishonestly or carelessly, the staked MATIC serves as collateral that may be lost.

The validator is responsible for ensuring that newly created blocks are validly propagated throughout the network and occasionally producing and propagating new blocks. In other words, validators, and the MATIC they stake, play a significant role in the health and longevity of the Polygon network.

Easiest Way to Stake MATIC

You can tap into a wide range of options for staking MATIC. The option you choose will largely depend on how much MATIC you are willing to stake and whether or not you choose to use a centralized or decentralized platform. 

Staking Via Omni Crypto Wallet

The easiest way to stake your MATIC is through Omni — an easy-to-use, highly functional and self-custodial Web3 mobile wallet. The software has an easy-to-use user interface that enables users to quickly access all of its functions. The account set-up process is simple and can be done in a matter of minutes. Once your account is set up, it only takes three taps to start staking MATIC and other cryptos. With a central focus on user-friendliness, Omni provides the fastest staking speed for not just MATIC but also other major tokens like ETH, SOL and BNB. 

The mobile application allows users to perform bridges, token swaps and staking. Users can quickly earn up to 6.3% APR (at time of writing) for MATIC after registering an account. Regular staking, liquid staking or yield vaults are the three distinct options that Omni offers to receive MATIC incentives. Additionally, Omni allows users the choice to use more than 20 alternative blockchains, with staking functionality offered for several coins other than MATIC.

Omni’s support for liquid staking further adds to the simplicity of staking MATIC on the platform. It allows users to earn interest on MATIC while keeping their assets liquid, which is advantageous for multiple reasons. It decreases commitment costs because liquid staking allows users to stake any amount, making Omni inclusive for all. It makes it possible for users to engage in yield farming where users can choose to earn yield through other decentralized (DeFi) lending strategies simultaneously.

How Much Do You Make Staking MATIC?

The amount you can make staking MATIC varies. MATIC staking rewards are given in accordance with how much MATIC is validated and what rewards the network is offering over the time period. When there is little MATIC staked, the protocol rewards will be greater as an incentive for more MATIC to come online. Conversely, if an increasing amount of MATIC is staked, the reward will be reduced. 

In December 2022, roughly 33% of the current MATIC supply is staked, which yields an APR of 5.3%. Check out the current amount of MATIC staked and the current APR before you decide to stake.

Centralized Exchanges

Multiple centralized exchanges (CEXs) offer staking support for MATIC such as Binance, KuCoin and Crypto.com. CEXs are perfect for users who are not comfortable with holding MATIC in their wallet, allowing users to earn yield on MATIC with minimal responsibility or oversight. 

Despite the convenience, a key drawback of using CEXs is that centralized providers consolidate pools of MATIC to run a large number of validators. This practice is dangerous for users of the network because it creates a large centralized target and point of failure, making the network more susceptible to attacks or bugs. 

Lido Finance 

Lido Finance is one of the world’s leading decentralized staking platforms, with over $6 billion in total value locked (TVL) on the platform. The platform strives to make staking a straightforward process while ensuring that user funds are productive and secure. Lido achieves this goal through its unique liquidity staking system. Currently, Lido offers a 6.3% APR for MATIC staking.

Users can mint new tokens based on their staked MATIC on a one-to-one basis. These newly issued tokens follow the same pricing information and are redeemable for the original token. Minted tokens are usually identified with the ‘st’ in front of their ticker symbol. The MATIC token is given to investors who stake MATIC on Lido. Newly issued tokens can be used on decentralized finance (DeFi) platforms to generate multiple yields on investment. You can stake MATIC through the Lido website or you can just go through the Omni app.

Risks of Staking MATIC

Staking MATIC carries significant risks. It’s critical that you comprehend, evaluate and accept the associated risks before opting to stake.

The potential loss of your staked MATIC from slashing is a significant risk. Slashing is a protocol-level punishment connected to a network or validator failure. In other words, if a validator violates the rules, the network destroys some of that validator’s coins. 

Another major risk is that until the lockup period is ended, you are unable to sell your MATIC to lock in profits or stop additional losses. However, using Omni allows you to avoid this risk. Omni gives investors the chance to take part in liquid staking, a type of staking that lets you earn rewards without giving up access to your money.

Is Staking MATIC Worth it?

Staking can be a great way to earn passive income on idle MATIC while helping secure the network, albeit not without risk. If you choose to participate in staking, using Omni is a great choice. It is compatible with a variety of software and hardware wallets such as Ledger. By downloading the application, you can start earning over 6% APR on MATIC through regular staking, liquid staking or yield vaults. 

The post Easiest Way to Stake Polygon (MATIC) by James Wells appeared first on Benzinga. Visit Benzinga to get more great content like this.