Why You Should Buy PERI and Stake? — Cases on Staking dApp
DeFi is still one of the hottest trends in the recent cryptocurrency market. In the DeFi sector, the Total value Locked reaches a new all-time high, and many projects are launching dApp to let users involve their DeFi programs. Moreover, staking is frequently featured for the best ways to produce income from existing cryptocurrency assets.
But when staking dApp is launching, some users hesitate to join the staking program. This is because users concern about the insufficient knowledge about staking, a price change of tokens, and lack of dApp’s functions. These doubts make users not only avoid participating in staking dApp but also hesitate to buy the project’s issued token.
So in this article, we will show you explanations of DeFi staking, case scenarios, and risk-hedging methods on PERI staking dApp to resolve doubts.
Staking on DeFi dApp?
In the era of mining Bitcoin, staking has appeared as the alternative way to earn passive revenue in cryptocurrency. Instead of mining on the Blockchain ecosystem, staking enhances network efficiency and security to protocol networks, so many projects incentivize users to participate in staking by giving regular rewards.
This trend is growing the same in DeFi, recommending users to stake their tokens on dApp. This is because the DEX(Decentralized Exchange) doesn’t have any middleman or centralized object behind it, so it needs a supply of tokens called liquidity pool, make buyers and sellers can trade assets with each other without any interruption. So staking in dApp means adding amounts on the liquidity pool(LP), and platforms provide rewards to users for providing LP.
Likewise, PERI Finance staking dApp also provides users staking rewards on weekly basis, so users can get passive revenue by claiming their rewards periodically. In addition, PERI Finance staking dApp provides users both rewards of staking and trading Pynths(PERI synthetic asset) in the platform. Users can mint the basic Pynth called ‘pUSD’, and this pUSD is used at trading various Pynths on the upcoming Pynths DEX platform. This means that users can expect the income of staking reward, arbitrage profit of Pynths, and earnings of PERI token price rises by staking PERI dApp.
Case of Staking PERI — by the Price Change
While using Staking dApp, there would have multiple circumstances by each user, so we will explain profit results of PERI dApp staking through some case scenarios.
Let’s assume that the PERI price is $2 and user staked 100PERI, and APY is 300% and the user has staked tokens for one year. The user has claimed his staking reward on weekly basis and staked all amounts of claimed reward. If PERI price is fixed at $2, the user can get 300% of annual profit, earning $400 amounts of PERI token in one year. (Case 1) As the PERI token price rises, this profit would increase, so you can see the Case 2 scenario that gets more than 1000% of annual profit.
Then when the PERI price falls, how would the annual profit be changed? If the user has steadily claimed reward and re-staked it, he could earn 200 PERI by one year, and this annual profit would be about 50%.
In these cases, you can check that users can earn an enormous profit while PERI price has surged up, and also can earn some return on PERI price drops. Therefore, staking PERI on our dApp could be not only the way of profit gain but also the strategy of risk-hedging.
Hedging Method — Adding Additional Assets on PERI Staking dApp
PERI Finance also providing users to join staking with various tokens like USDC and DAI: featured kinds of stablecoin.
Users can participate by staking their USDC/DAI token by
PERI 80% : Stablecoin 20% ratio. Since the stablecoin’s token price is always fixed at $1, so mixing some amount of staking with PERI and stablecoin in dApp would be a good method of earning a more stable profit than staking PERI only.
By these methods to stake tokens on dApp, users can hedge their assets for PERI token’s price fluctuation risk.
Also, PERI Finance will make additional pools on featured DEX platforms, users can trade various swap pools with their holding PERI or pUSD and making a combined pool with featured tokens.
Closing Thoughts
DeFi is definitely in the hot potato of the cryptocurrency industry, and users keep searching for a better profit by hedging their risk. As you see in the article, PERI Finance is providing various asset staking services on dApp, so please check our dApp and earn more profit by your own strategy!
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References
https://cointelegraph.com/news/defi-tvl-hits-a-record-157b-as-ethereum-competitors-attract-investors
https://hackernoon.com/earning-passive-income-with-defi-staking-an-overview-4a1y3720
https://academy.binance.com/en/articles/a-beginners-guide-to-earning-passive-income-with-crypto
https://academy.binance.com/en/articles/a-quick-guide-to-bnb-staking-on-binance-smart-chain-bsc
https://www.coinbase.com/learn/crypto-basics/what-is-staking
https://www.stakingrewards.com/journal/how-staking-defi-is-disrupting-traditional-interest-rates
Disclaimer
Any APY is subject to change based on the number of users staking their PERI, as well as the market volatility(fluctuation of PERI token price). This is the initial absolute APY rate based on these exact time conditions, without any guarantee and are non-binding, they are listed solely for informational purposes.
