{"id":11464,"date":"2024-03-18T07:38:46","date_gmt":"2024-03-18T00:38:46","guid":{"rendered":"https:\/\/bitcoinvn.io\/news\/?p=11464"},"modified":"2024-07-20T21:35:07","modified_gmt":"2024-07-20T14:35:07","slug":"staking-rewards","status":"publish","type":"post","link":"https:\/\/bitcoinvn.io\/insights\/staking-rewards\/","title":{"rendered":"Why are staking rewards so high at BitcoinVN?"},"content":{"rendered":"

Looking at the <\/span>staking rewards<\/span><\/a> currently on offer at BitcoinVN certainly deserves some raised eyebrows.<\/span><\/p>\n

As of the writing of this article, two specific coins (<\/span>Tron<\/span><\/a> and <\/span>Monero<\/span><\/a>) are advertising rates of over 100% APR.<\/span><\/p>\n

Could it be real?<\/span><\/p>\n

How does it work?<\/span><\/p>\n

Is it just another scam to steal your coins?<\/span><\/p>\n

\"\"<\/p>\n

Well, if you are a remotely functioning human being your eye-brows SHOULD be raised upon seeing such numbers.<\/span><\/p>\n

The cryptocurrency world is fraught with scams and alarmingly good sounding offers generally end up in tears.<\/span><\/p>\n

So what\u2019s happening here? Why the high APR?<\/strong><\/h3>\n

First you got to understand where these numbers are coming from.<\/span><\/p>\n

Allocators to the <\/span>BitcoinVN staking scheme<\/span><\/a> are – functionally – liquidity providers for certain relatively popular swap pairs on the exchange.<\/span><\/p>\n

In reward for this service of liquidity provision, the staking participants are paid a certain cut of the exchange fees.<\/span><\/p>\n

Each swap in the corresponding cryptocurrency results in a payment to the liquidity providers.<\/span><\/p>\n

Now – why the high numbers?<\/strong><\/h3>\n

\"\"<\/p>\n

Well, BitcoinVN has seen decent usage growth over the past year resulting in increasing turnover in various swap pairs, while at the same time the growth in provided liquidity has not kept up pace.<\/span><\/p>\n

We are generally relatively defensive about advertising the staking program, since our general recommendation remains to self-custody your coins <\/span>(<\/span><\/i>get your hardware wallet from BitcoinVN Shop – official supplier for Ledger, Trezor, Coinkite and Blockstream devices in Vietnam<\/span><\/i><\/a>)<\/span><\/i> – which certainly plays a role that the staking program remains more of an \u201cinsider tip\u201d for the time being, resulting in pretty outsized earning opportunities.<\/span><\/p>\n

The general formula is:<\/span><\/p>\n