Introduction to Staking
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On SOFIL DApp, you can stake with your cryptos to earn cryptos. Staking occurs when you lock cryptos (usually native tokens of a blockchain) for a set period of time to help support the operation of a blockchain. The cryptos you earn are also known as staking rewards, which is generated from mining rewards, rather than from other external platforms or other utilities.
What type of cryptos can be staked and earned on SOFIL?
Based on the well-established strategic partnerships of SOFIL and professional parties in Filecoin ecosystem, along with the groundbreaking development of Filecoin, currently, you can stake $FIL to earn on SOFIL platform.
SOFIL select the crypto types and offer staking products according to the following considerations:
The market potential and future development of a type of crypto, which is related to
the corresponding blockchain network development (e.g. $FIL and its corresponding blockchain network - Filecoin)
Project development and strategic partnerships of SOFIL to make sure the staking rewards can be distributed are solid and backed by strong parties
Platform development of SOFIL to make sure the staking rewards to be distributed can be backed by solid platform logic
You can check our Project Updates here for more details of SOFIL development.
You can check our Platform Updates here for our latest news to see what types of crypto you can stake and more details related to the technical specification.
How are staking rewards calculated?
Staking rewards are simply calculated according to your chosen:
Staking period and the corresponding annual percentage rate
Staking amount
You can check here for detailed calculation formula.
What happen after staked?
A Staking Contract is created every time you stake. You will receive a NFT, also known as Staking NFT. By holding the Staking NFT, you can withdraw staking rewards and redeem the staked amount after the staking period. Total staking rewards of a staking contract will be proportionally released daily, there are staking rewards available to withdraw daily.
Your staked amount will be utilized by block miners during staking period to generate mining rewards and distribute staking rewards to you.
You can check your staking portfolio, you should be able to find the staking contract with the NFT you just created.
What can I do with the Staking NFT after receiving it?
You can keep the NFT in your wallet properly for staking rewards and staked amount redemption. If you need liquidity before the end of staking period, you can sell it or collaterize it to borrow in the open market.
Please be aware that if you have transferred your NFT to others, although you are the one who created the staking contract, you would not be able to withdraw rewards or redeem the staked amount anymore. The right to withdraw rewards and redeem the staked amount belongs to the NFT holder.
What happen and what should I do after staking period of a contract ends?
After the staking period of a contract ends, the status of the staking contract will be converted to Matured. Staking rewards generation has been stopped at the maturity time, the staked amount can be redeemed.
Regarding any matured staking contract, you can
Check if there's any withdrawable rewards remaining,
If yes, go to step 2
If no, directly go to step 3
Withdraw all the staking rewards
Unstake the contract
the corresponding staking NFT of the staking contract would be burned
the staked amount in the staking contract would transfger to your wallet
Please make sure you have withdrawn all the staking rewards generated from the staking contract before unstaking the contract. You would not be able to withdraw staking rewards from the staking contract anymore after you burn the corresponding staking NFT and redeem all the staked amount.
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