Introducing: Earning in the Sylo Smart Wallet
What you need to know about turning your phone into a ‘supersaver’ account to earn XTZ.
Launched yesterday, the new ‘Earn’ feature in the Sylo Smart Wallet [linked to press release] harnesses the power of Tezos Baking.
The first DeFi piece to arrive into the app, we’re excited for people everywhere to get to enjoy the benefits of this experientally simple yet technologically powerful feature.
Sylo Smart wallet users can now earn rewards on the Tez (XTZ) they keep in their wallets. Think of it like a ‘supersaver’ account for your mobile but instead of earning interest, you earn rewards back into your account in the form of more XTZ.
In the DeFi realm, this act of earning rewards for digital assets held in your wallet is called ‘staking’. In the case of the Tezos ‘Earn’ feature in the Sylo Smart Wallet, users can stake their XTZ without locking up or losing access to their funds.
Our friends over at Tezos call this process ‘baking’ and to help our communities communicate easier, we’ll be calling it that too. You can read more about Tezos Baking in the Sylo Smart Wallet here or in technical detail here.
And though it might be like a ‘supersaver’ account, the Earn feature is actually better than a conventional savings or staking account, because you never lose access to your funds. You can withdraw or add to the funds in your account at any time.
SO HOW DO I ACTIVATE TEZOS BAKING?
I’m glad you asked! It’s easy. Just follow these steps:
1. First, you’ll see a new button — ‘Earn’ — on the Tezos token page.
Select the ‘Earn’ button.
2. You will now see a screen that tells you more details about the ‘Earn’ feature, aka Tezos Baking.
If you like what you see, select the button marked ‘See earning rate’ to continue.
3. You’ll now see a screen with the finer details of your Tezos Baking, such as your balance, the APY and when your first reward will be distributed.
To begin earning rewards, select the ‘Activate’ button.
4. Done! Now select the button marked ‘Got it’.
5. You’ll now be able to see an overview of your Earning account.
You can check back in on this Earning page anytime you want to see your Baking progress (ie, how much of a reward you have earned and when it will arrive).
—
Now if you’re new to the concepts of staking, earning and baking, you likely have plenty of other questions too, so below are some key questions and answers.
At the end of the article, if you have any further queries, please go ahead and drop us a DM on Twitter and we’ll get them answered for you.
WHAT IS TEZOS?
Tezos is a decentralised, public blockchain that evolves by upgrading itself. Stakeholders of the Tezos network vote on amendments to the protocol to reach social consensus on proposals, which creates a secure and organic upgrading mechanism.
Key features of Tezos are the protocol’s on-chain governance system, its consensus algorithm based on Proof-of-Stake (PoS), and its ability to facilitate formal verification of smart contracts.
Tez, also known as XTZ, is the native cryptocurrency of the Tezos blockchain. The Tezos blockchain and cryptocurrency are both supported by the Sylo Smart Wallet.
WHAT IS TEZOS BAKING?
Tezos baking lets Tez (XTZ) holders earn extra income by contributing to the network security of a proof-of-stake (PoS) asset. At a layman’s level, it is simply the act of earning rewards (also known as yield) on any activated XTZ that you hold in your Sylo Smart Wallet. It’s simple — think of it like a ‘supersaver’ account for your mobile phone.
Learn more about Tezos Baking.
IS THERE A MINIMUM AMOUNT OF XTZ I NEED TO BAKE IN ORDER TO EARN?
No, you can hold as little or as much XTZ as you like under the activated Earn feature in the Sylo Smart Wallet. However, you do need enough funds for both your stake and the transaction fee. This is handled automatically in the UI.
IS EARNING BY BAKING MY TEZ RISKY?
Baking Tez is safe. When you activate the Earn feature to accumulate rewards via Tezos Baking, your XTZ remains in your Sylo Smart Wallet. You retain ownership of your assets and can spend them whenever you want. The Sylo Smart Wallet is non-custodial, which means only you own your private keys and only you have constant control and ownership over your assets.
HOW MUCH CAN I EARN?
That all depends on how much XTZ you bake. Interest rates of 4–5% are currently being offered by Sylo on Tezos (XTZ) kept in your Sylo Smart Wallet under the Earn feature. For the latest rates, check in your app.
HOW AND WHEN DO I RECEIVE MY REWARDS?
Your rewards will be sent to the same account you are staking from. You will receive your first reward 36 days after activating the ability to Earn from Tezos Staking and you will then receive rewards every few days after that.
ARE THERE ANY FEES?
There are two fees that you should be aware of:
- A transaction fee
This is a small fee, usually a few cents, that you’re charged to activate your Tezos Staking address. After that, your address will remain activated for staking and you won’t have to pay any additional fees. - A Baking fee
This fee is allocated to bakers for running the infrastructure to sign and publish new blocks on the blockchain. This in effect is what generates the staking rewards that are then paid back to you directly.
WHAT DOES “VARIABLE APY” MEAN?
APY stands for annual percentage yield, it’s the real rate of return you will earn on your staked Tezos at that point in time. This rate may vary with every reward cycle.
ARE MY FUNDS LOCKED AWAY IF I USE TEZOS BAKING?
No, via Tezos Baking you will always have access to freely spend or add to the funds in your Earn account.
Whereas other earning programmes may force you to lock up your funds into a contract for a period of time to earn interest, Tezos Baking allows you to earn while maintaining your access and control.
IF I HAVE A SYLO SMART WALLET, WILL I START EARNING REWARDS AUTOMATICALLY?
No. In order to start earning Tezos rewards you will need to:
1. Hold Tezos (XTZ) in your Sylo Smart Wallet.
You can buy XTZ in-app via our ‘Buy crypto in-app’ feature powered by MoonPay [linked to article] OR import in another wallet that holds XTZ OR get a friend to send you some XTZ in chat in your Sylo Smart Wallet ;)
2. Activate Tezos Baking.
—
Do you have any further questions about Tezos Baking in the Sylo Smart Wallet?
We would love to hear from you. Send any queries to us now via DM on Twitter or Telegram.
—
Experience the Sylo Smart Wallet now by downloading from the Google Play or Apple App stores.
For further announcements, follow Sylo on Twitter, Telegram or visit www.sylo.io
