![]() However, in recent years Ethereum became the victim of its own success with high network usage resulting in delayed bottlenecked transactions and substantially higher gas fees.īlockchain developers have designed innovative layer-2 scaling solutions to combat this issue. Ethereum was the first smart contract-enabled blockchain and has shown continued strength and growth since launching in 2015. The Ethereum blockchain is the second-largest blockchain in existence and is host to over 80% of decentralized applications (dApps). Harmony was designed as an interoperable layer-2 scaling solution for Ethereum. However, Ivan on Tech Academy has you covered! If you want to learn about the fundamental principles of blockchain, our Blockchain & Bitcoin 101 course is the perfect place to start your journey!Īlso, if you want to dig a little deeper into how the technology behind Harmony works, be sure to check out the Ethereum 101 course at Ivan on Tech Academy, the number one blockchain education suite online! What is Harmony? Understanding how blockchain technology works can be daunting for beginners. Furthermore, we’ll explain how the Harmony ONE token is used within the protocol’s ecosystem. Moreover, we’ll explore sharding, and how the Harmony blockchain operates using a unique consensus algorithm. In this article, we’ll discover the depths of the Harmony protocol and how it is offering scalability for Ethereum as an interoperable layer-2 solution. Harmony makes it easy for developers to build and scale creative, intuitive decentralized applications (dApps) that enable frictionless, cross-chain token swaps. Powered by the Harmony One token (ONE), the Harmony blockchain is an independent blockchain designed to enable ultra-fast transactions and interoperability as an advanced layer-2 solution for Ethereum. Whether you prefer traditional staking methods, or liquid staking options, there is something for everyone.Harmony is an interoperable sharding protocol offering a two-way Ethereum bridge. ![]() This is especially so for people who are bullish on Harmony as it helps to secure the network transactions, and earns you additional One tokens with no impermanent losses. If you have some ONE tokens in your exchange or wallet, you should consider staking them. To receive your stOne liquid staking tokens, simply stake your One tokens and receive stOne in return, based on the prevailing exchange rates. You can also provide liquidity for the stONE-ONE LP, earning additional LP fees as well as incentives.Īnother benefit is also the ability to swap stONE for ONE using the LP to skip the undelegation waiting time, if you need funds urgently. Image Credit: Tranquil Financeįor example, you can use it as collateral to borrow money from, or simply supply it to earn about 8% APY at Tranquil Finance. This is in contrast to traditional staking, where you will have to manually collect and re-delegate rewards to compound.Īnother benefit of liquid staking that DeFi enthusiasts love is its many use cases - stONE can be also used in DeFi applications to earn additional rewards on top of staking rewards. One benefit of liquid staking tokens is the auto-compounding of staking rewards, allowing for convenient compounding of rewards. This allows users to stake their ONE tokens with validators, helping secure the network and earn staking rewards. Tranquil Finance offers stONE, a liquid staking derivative. With liquid staking, however, you can do much more with your One tokens. They will be delegated to the validator, until you decide to undelegate them. Typically when you stake your One tokens, you will be unable to access them any further. Other factors that I also consider are their uptime, and their commissions.ĭo note that you need to delegate a minimum of 100 ONEs for staking. If you do decide to unstake, you will need to wait through seven epochs to retrieve your ONE tokens. I typically choose validators that I recognize as active and involved in the community. The overall expected returns from staking is about 10% a year, but there are variances between validators. Next, go to the Harmony One staking website, and choose between the list of validators available. To stake your ONE tokens, you need to first create a Harmony One wallet, and transfer your ONE tokens over. In this article, we explore the different ways we can earn additional rewards by staking our Harmony One tokens. Staking them helps to strengthen the network security, while earning you rewards at the same time. Do you have Harmony ONE tokens just idling in your wallet? Why not maximize your gains by staking them in the meantime?
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