How to Stake ApeCoin

The post How to Stake ApeCoin by James Wells appeared first on Benzinga. Visit Benzinga to get more great content like this.

Want to jump straight to how to stake Apecoin? You can stake $APE with 3 taps using the seamless Omni wallet user interface.

Recent developments for ApeCoin staking has excited Ape NFT holders and ApeCoin investors alike. Interest rates are significantly boosted for members of the yacht club, offering extremely attractive APYs that are projected in the triple-digits. This comprehensive guide will show you how to take advantage of ApeCoin staking––no matter which country you may reside in. 

ApeCoin staking is a phenomenal way to generate yield on idle APE. To earn interest, all you need to do is deposit your tokens. Although there are risks associated with staking, done correctly, it may be a fantastic source of passive income. The following discussion will explore the easiest ways to stake ApeCoin in any country you reside in. 

ApeCoin Staking TL;DR:

The multichain crypto wallet app Omni is currently the easiest way to stake ApeCoin. Omni is available on iOS and Android, offering the most seamless mobile experience for web3 users. 

The wallet has simplified crypto staking––it only takes 3 taps to stake your ApeCoin with Omni. Also worth noting, its high security and NFT-oriented interface makes for a great user experience. Omni can also be integrated with Ledger hardware wallets, ratcheting up the security even more.

Another notable method for staking ApeCoin is through ApeStake.io. However, this website geo-blocks users based in the United States and Canada. Another option for ApeCoin staking is Binance, but it will take a portion of your rewards, so the simplest approach to make the most from APE staking is Omni. 

How to Stake ApeCoin

ApeCoin staking will largely take place on ApeStake.io. Currently, there are 3 ways to stake APE, as indicated by an update from Horizen Labs––the blockchain infrastructure company responsible for building the ApeCoin staking system. These methods are as follows:

1. Open-source smart contracts
2. Front-end interfaces
3. Third-party interfaces

Horizen Labs’ open-source smart contracts on Ethereum will allow anyone to interact directly with the smart contract and build solutions. This means that 3rd parties can provide services directly to the ApeCoin community by developing their own solutions that leverage the smart contract.

The front-end interface will be built on ApeStake.io. It is designed to be accessible to users who may not have the technical skills to interact directly with the smart contract but still want to stake their APE. According to Horizen Labs, this site will accommodate all of the functionality of AIPs 21 & 22.

Lastly, there are multiple front-end user interfaces that are being developed by third parties to enable users to access the smart contract irrespective of their geographical location. This includes a high number of centralized exchanges as well as a number of DeFi platforms. 

The most impressive of these solutions is Omni. The mobile software wallet doesn’t geoblock users, so anyone can stake ApeCoin via Omni. Simply send your Ape NFT, if you’re an owner, and your ApeCoin to Omni, and you’ll be able to stake in 3 taps. 

Once your Omni wallet is funded, select ApeCoin under assets, choose which staking pool you’d like to stake your tokens in, and confirm the transaction. 

What Is ApeCoin Staking?

ApeCoin staking allows token holders to earn high yield on their ApeCoin by earning tokens issued by ApeCoin DAO over the coming months. There are separate pools for those who stake ApeCoin alone and those who stake ApeCoin with BAYC, MAYC, and Bored Ape Kennel Club NFTs. Notably, APYs are projected to be significantly higher for those who stake ApeCoin alongside an NFT. 

Staking APE is a great way to make passive income in APE without losing possession of the underlying crypto. Moreover, if the value of APE increases while you are staking it, you are essentially double-dipping on returns. This isn’t without risk, however. There is always a risk of vulnerabilities in the staking contract, though this risk is smaller with such a large brand like Yuga Labs.

According to the company’s official website, the first rewards will be accrued on December 12, 2022. Staking rewards will be highest during the 1st quarter of staking, beginning at 35 million and decreasing to 15 million over the next 4 quarters. 

Note, due to regulatory concerns ApeStake.io will not be available for residents of the United States, according to a recent update from Horizen Labs. However, technically savvy users will be able to stake directly via smart contracts. Moreover, users that do not wish to stake using the smart contract have the option to use Omni to stake ApeCoin.

Staking Via Omni Crypto Wallet

One of the easiest ways to stake your APE 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.

Omni has launched APE staking prior to rewards launching, so users will be ready to earn starting on December 12, 2022. Omni also offers staking $APE, BAYCs, and MAYCs through a Ledger integration, allowing ape holders to make use of the clean user interface while keeping all their assets safe on their hardware wallet.

Additionally, Omni has created a concierge-like experience for #BAYC / #MAYC with personalized onboarding where BAYC/MAYC holders can set up 1:1 calls with the Omni team to receive white glove service helping them set up their wallet or sync their Ledger and stake $APE. Ape holders will even be able to tap into priority support via Telegram and Email for any future questions and assistance.

How Much Can You Make In Interest Staking ApeCoin?

ApeCoin staking rewards, otherwise known as APE staking emissions, will represent 17.5% of the total supply of the token and be distributed over a 3-year period. 

In the 1st year of staking, 100 million APE will be released to all staking pools. Currently, there are 4 primary staking pools to which holders of APE and Yuga Labs NFTs will have access. These 4 pools and their respective 1st-year token allocations are as follows:

• APE-only Pool: 3,835,000 tokens (3.83%)
• BAYC Pool: 47,105,000 tokens (47.1%)
• MAYC Pool: 30,000,000 tokens (30%)
• BAYC/MAYC + BAKC Paired Pool: 19,060,000 tokens (19.06%)

It’s important to note that all pools require at least some amount of APE to participate in staking. Moreover, the ApeCoin staking system enforces staking caps, which will be voted on by the ApeCoin DAO prior to each staking period. The first staking period will enforce the following caps on a per NFT basis:

• BAYC: 10,094 $APE
• MAYC: 2,042 $APE
• BAKC: 856 $APE

This means that a holder with three Bored Apes can stake and earn rewards with no more than 30,282 APE. Like other cryptocurrencies, staking rewards are directly proportional to the amount of staked APE in each pool. This ultimately incentivizes participants to own the highest percentage within a pool in order to capture the maximum rewards. 

APE holders are also incentivized to stake APE sooner rather than later. This is because most of the APE will be rewarded in the first 90 days of each staking period, decreasing each quarter until the end of the three-year staking period.

Risks of Staking APE

Staking APE carries some significant risks. Therefore, it’s critical that you comprehend, evaluate and accept the associated risks before opting to stake.

A key risk of staking is that individuals staking APE can incur short to medium term losses from price changes without the ability to liquidate during a sudden market crash. Luckily there are no staking lockups so you can withdraw your tokens whenever you want.

Another key risk of staking is the risk of funds being hacked, stolen, lost or frozen. Potential reasons for this include: 

• A centralized crypto exchange or third-party interface is hacked
• Error or mistake interacting with smart contract 
• A smart contract vulnerability in the staking contracts is abused
• Network security is compromised by a 51% attack (very unlikely, but theoretically possible)

In 2021 alone, more than $200 million worth of cryptocurrencies were lost due to fraudulent activity, according to Bloomberg. Using Omni’s integration with Ledger hardware wallets can significantly reduce the risk of using a software wallet to stake as well. Ledger wallets never store your wallet info online so they are essentially invulnerable to cyber attacks. Ledgers can be a bit clunky to use on their own but Omni’s user interface makes the process seamless. 

Is Staking ApeCoin Worth it?

Overall, staking  could be a great way to earn passive income on idle APE and Yuga Lab NFTs while helping support the ecosystem, albeit not entirely without risk. As an advanced investor, choosing to participate in staking with ApeStake.io is a great choice. For less technically capable users––or those based in the U.S––it may be wise to opt for a 3rd-party solution for staking. Right now, it’s clear the best 3rd-party solution is Omni.

Frequently Asked Questions

The post How to Stake ApeCoin by James Wells appeared first on Benzinga. Visit Benzinga to get more great content like this.