What is staking?
Staking can be explained as holding cryptocurrency or tokens to support a network and in turn getting rewarded for it. Staking is an important way of earning rewards for holding certain cryptocurrencies. One way to look at staking is by comparing it to an interest-bearing savings account that rewards you for holding your funds in a specific pool over a set amount of time.
There are two types of staking. Single asset staking involves holding one cryptocurrency in a decentralized app (Dapp) or a decentralized exchange (Dex) and getting rewarded for your stake. The yields for single asset staking are usually smaller when compared to double asset staking, or double asset/lp farming.
Where are places you can single stake Ethereum?
Some of the best places to stake your ETH through single asset staking include decentralized finance apps such as Aave, Yearn Finance, Lido, and Celsius.
Here is a list of the current APY provided through each of these Dapps for staking your ETH.
How does single asset staking compare to double asset staking?
You will see in this article that double asset staking, or liquidity farming (LP farming) can result in greater yields than single asset staking with the Dapps listed above.
Let’s start by defining double asset staking.
Double asset staking, more commonly known as liquidity pool farming, involves providing liquidity for two cryptocurrencies in a liquidity pool and receiving rewards for your stake in that pool. In addition to the redistributed fees that a liquidity pool garners, many LP farms further incentivize stakers with native tokens.
Notable decentralized exchanges, or Dexes, where you can Lp farm with your ETH include Uniswap and Sushiswap.
On Uniswap, the current APY (Annual Percentage Yield) for LP farming with a USDC-ETH pair is 14.73% [https://v2.info.uniswap.org/pairs]
For the same USDC-ETH pairing on SushiSwap the APY is 16.08% [https://analytics.sushi.com/pairs/0x397ff1542f962076d0bfe58ea045ffa2d347aca0]
*percentages are based on APY provided on (8/10/21)
Although LP farming offers a higher yield than single asset staking it comes with the risk of impermanent loss.
You can find more information on what impermanent loss is and how to reduce your risk in this article.
Why Alphr’s double asset farming programme is the highest stable yield available for ETH.
ALPHR, a decentralized social trading platform allows users to connect their wallet, mirror the trades of top wallets, and display the efficacy of their trading patterns to other users.
A cutting edge feature of ALPHR is mirror trading.
Mirror trading allows users to copy the trades of highly efficient and proven traders.
Imagine being able to mirror the trades of Warren Buffet during the outcropping of his career as an investor. ALPHR gives you the same opportunity but within the up and coming Defi landscape.
Can you pursue double asset staking with ALPHR and receive even better rewards than defined earlier in this article?
The answer is yes!
By staking your ETH with ALPHR you can receive even greater APY and rewards than the options listed above.
This is because Alphr redistributes 75% of all protocol fees in ETH to double asset LP farmers.
You will be sent ETH payouts every day (ΞPED) for staking the ETH/ALPHR pair.
In addition to ΞPED, farmers are rewarded 0.03% of fees on Uniswap and additional rewards in the form of the Alphr native token $ALPHR (with a current APY of 310%).
Below is a table showing the ETH yield based on daily protocol volumes for the first 2 days since Alphr has been in beta and at projected yields for different volumes:
Alphr’s daily volume of $101,852 on launch day provided a yield of 57% to ETH-ALPHR stakers.
This is greater than the USDC-ETH pairing provided on Uniswap and Sushiswap by roughly 40%
Though, as the diagram shows, as the daily protocol volume increases on ALPHR the yield on your ETH builds and builds.
Just yesterday, 8/19/21 the yield on ETH was 99%
The reason why ALPHR can give such a great APY for staking your ETH is their redistribution protocol.
ALPHR pays all users providing liquidity 75% of protocol trading fees.
This redistribution protocol increases yield for those staking with ETH/ALPHR and provides real value accrual to a governance token.
Here is an article outlining how value is applied to the ALPHR governance token. (Alphr token value capture)
Remember: Staking with Alphr gives you ETH Payouts Every Day (ΞPED)
Where can you find ALPHR?
You can stake your ETH with ALPHR through Uniswap V3 and receive the great returns described above in this article.
Also, you can connect your wallet to ALPHR and start mirroring trades and displaying your trading efficacy at https://alpha.alphr.finance/home
Here is a quick article outlining how to stake your ETH with Alphr and start earning ETH Payouts Every Day (ΞPED)
Your financial freedom is in your hands!
Until next time, Ragnar