Shiba Inu is an ERC20 meme coin on the Ethereum chain with a thriving ecosystem. Shiba Inu was first listed on the Shiba swap, and today, it can be found on many top-tier crypto exchanges. Knowing how to stake Shiba Inu will protect your crypto investment during volatile times and help you earn from passive income.
Shiba Inu is known for its high volatility and is a good pick for day traders with an appetite for volatility. Today’s live Shiba Inu price is $0.000025 with a 24-hour trading volume of $554,363,070. We update our SHIB to USD price in real-time. Shiba Inu has been up 1.38% in the last 24 hours. The current CoinMarketCap ranking is #15, with a live market cap of $13,968,292,470 USD. It has a circulating supply of 549,063,278,876,302 SHIB coins
You have several choices of wallets supporting the Shiba Inu coin, and the best can be shortlisted and qualified further. Make an informed decision to pick a wallet choice to store your bitcoin, ether, or cryptocurrency. Our choice is the popular Metamask, a free, reliable Ethereum wallet available on Android, iOS, and chrome plugins.
What is Shiba Inu staking?
Shiba Inu Staking is the process of committing Shiba Inu tokens to a pool in return for interest. Different exchanges offer varying interests that depend on the staked amount and the staking period. Payouts also vary from daily, weekly, monthly, and annually.
Staking on decentralized exchanges is open to everyone with access to a crypto wallet. However, taking on centralized exchanges might be limited to people in certain jurisdictions.
Staking helps provide liquidity for exchanges and support node validators, an essential part of the proof of stake (POS)protocols. Ethereum is on track to shift to a POS consensus protocol.
Shiba swap, the official Shiba Decentralized exchange (Dex), has a community of over 3M followers on Twitter.
How does Shiba Inu staking work?
To stake Shiba Inu, you need to deposit Shiba Inu tokens in your wallet for Dex or buy Shiba Inu for centralized exchange (CEX). In this case, we shall be staking Shiba Inu on its native DEX Shiba swap by connecting it to the Metamask wallet.
Shiba swap allows for the staking of Shiba Inu and its tokens, including Bone and Leash. Staking rewards include xShib, xBone, and x Leash, which are proportionate to your share of the entire pool.
Staking returns are distributed weekly. You can redeem only 33% of your staked rewards; the remaining 67% are locked for 67 days before you can withdraw.
Staking on CEX depends on the platform. Binance offers flexible staking; you can redeem at any moment, and locked staking, redeeming before maturity, results in loss of interest. Locking for 120 days has an APY of 12.09%, while flexible staking is at 0.5%.
How to stake Shiba Inu on Metamask
Metamask is a free Ethereum wallet that can easily connect to various dAPPS and Web 3 platforms. There are two ways of depositing Shiba Inu tokens into metamask:
- Buy Shiba Inu from an exchange and withdraw the tokens into your metamask wallet.
- Swap cryptocurrencies on Metamask wallet for Shiba Inu. Check the Shiba swap for supported cryptocurrencies.
Users stake Shiba Inu by burying their tokens to earn woof rewards. Shiba swap also supports staking of its other native tokens, Leash and Bone.
So, how do you stake with Metamask on Shiba Swap?
Step 1: Visit the Shiba swap website, click ‘Connect Wallet,’ and connect to metamask. Sign the transaction on the pop-up to approve the connection.
Step 2: Proceed to step 3 if you already have Shiba Inu in your Metamask; otherwise, select ‘swap tokens’ on the home page to swap your tokens for Shiba Inu.
Step 3: On the home page, click ‘Stake tokens.’
Step 4: On the new page, click ‘Bury Shib’ and enter the amount of Shib tokens you want to stake.
Step 5: Finally, click approve and sign the transaction on the Metamask wallet.
NB: Interacting with the Ethereum protocol can charge fees as high as $20. Always ensure you have enough Eth in your wallet to cater for those fees.
Other features of the Shiba swap include: Providing liquidity (Digging) to earn bones, trading NFTs (Shiboshis) and voting on governance, and earning Bones while at it (Doggy DAO).
Shiba Inu staking through a pool
Pooling helps reduce fees on transactions and helps leverage higher returns by providing more lending liquidity to borrowers. Cryptocurrency exchanges that allow the pooling of Shiba Inu include crypto.com and Binance.
Binance currently offers the highest interest rates on staking Shiba Inu. It does not, however, support Leash and Bone tokens. Binance offers both locked and flexible staking.
Shib is locked for a fixed term dictated by Binance with interest paid out daily in locked staking.
For flexible staking, the user can stake for their desired period. Interest is at 0.5% APY, with interest paid out daily. Users can compound their interest by enabling the daily auto-subscribe feature.
Crypto.com allows staking on a flexible, one and three-month term basis. Interest is paid out weekly. The percentage interest depends on the amount staked, the period, and the number of Cronos held. Cronos (CRo) is the crypto.com native token. For instance
How much can I earn with Shiba Inu staking?
Staking Shiba Inu will get you different returns depending on the staking platform. Let’s look at how locking Shiba Inu for one year compares on different platforms.
- Shiba Swap has an APY of 5.45%, independent of total volume locked and period.
- Binance does not give a provision for locking Shiba Inu for one year. However, locking for four months earns you 12.9% APY.
- Crypto.com offers the longest lock period at three months. This will earn you 2% APY with less than 400 CRO staked.
Is Shiba Inu staking profitable?
Shiba Inu staking is profitable. This will, however, depend on the value of Shiba Inu during the end of the staking period.
Shiba Inu staking vs. mining
Shiba Inu is an ERC20 token and cannot be mined. However, you can mine Ethereum or other mineable cryptos and then swap them for Shiba Inu on Shiba swap. The process requires high computing power.
Benefits of staking Shiba Inu
- Passive income with regular interest payouts.
- You can easily stake Shiba Inu on Shiba swap anonymously without KYC compliance.
- Staking is safe for the environment when compared to mining
- Growing the total value locked increases the value of circulating tokens.
- You also earn Shiba’s Ryoshi deflationary token when staking on the Shiba swap.
- The staking option offers the option of compounding interest for higher returns.
- It helps strengthen the community and acts as a route for distributing community airdrops.
Drawbacks/risks of staking Shiba Inu
- To earn bigger returns, you have to lock up Shiba tokens for longer periods.
- Redeeming locked Shiba tokens before maturity results in a loss of interest.
- You can only redeem 33% of Shiba on the Shiba swap DEX; the rest is locked up for 67 days before you can withdraw.
- Profitability depends on the value of Shiba Inu during redemption. A price drop would result in a loss.
- Locked Staking on exchanges is usually fixed to a certain quota, meaning you could miss out on a high yield staking opportunity.
- High transaction charges for interacting with the Ethereum protocol.
- The safety of your Shiba tokens is pegged to the security of the exchange on which they are staked.
Conclusion
Shiba is one of the top-ranking meme coins alongside its cousin Doge token, with a market cap of $13B. Staking on the Shiba swap is quite straightforward, but the high Eth gas fees make the process a hustle. Staking on Binance is a process, but worthwhile noting their low transaction fees with high staking rewards. Crypto.com is also a good option, but you have to lock CRO tokens for a minimum of 6 months for good returns.
Staking Shiba Inu is profitable because its value does not crash.
Source: https://www.cryptopolitan.com/how-to-stake-shiba-inu-on-metamask/