{"id":7947,"date":"2022-09-26T08:27:51","date_gmt":"2022-09-26T01:27:51","guid":{"rendered":"https:\/\/news.bitcoinvn.io\/?p=7947"},"modified":"2025-03-15T10:26:39","modified_gmt":"2025-03-15T03:26:39","slug":"how-does-staking-on-bitcoinvn-work","status":"publish","type":"post","link":"https:\/\/bitcoinvn.io\/news\/how-does-staking-on-bitcoinvn-work\/","title":{"rendered":"How does staking on BitcoinVN work?"},"content":{"rendered":"

Looking at the comparatively high APR<\/a> offered by the BitcoinVN staking program<\/a>, the (rightful) initial question of the visitor is of course: “WHERE IS THE YIELD COMING FROM?”<\/strong><\/p>\n

\"\"<\/p>\n

After the blow-up of various ponzi schemes in the first half of 2022 users have learned to ask the right questions.<\/span><\/p>\n

\u00a0“But now tell us… where DOES the yield come from?”<\/strong><\/h2>\n

BitcoinVN is a Cryptocurrency Exchange<\/span><\/a> (in fact: <\/span>The first in Vietnam with almost a decade of operating experience behind it<\/span><\/a>) which takes a small percentage in fees on every swap.<\/span><\/p>\n

In exchange for providing liquidity, depositors can earn a share of the exchange volume of the staked asset\u00a0 *(the formula can be found <\/span>here<\/span><\/a>).<\/span><\/p>\n

There are no promised fixed returns!<\/span><\/p>\n

If the asset you staked tends to get used a lot, the APR goes up.<\/span><\/p>\n

The more the asset you staked is utilized in swaps on BitcoinVN, the more you earn (and vice versa).<\/span><\/p>\n

How is that different from a ponzi scheme?<\/strong><\/h2>\n

A ponzi scheme has no actual business model to generate the promised returns to depositors.<\/span><\/p>\n

The only way to pay out the promised yields is via gaining ever more depositors at an ever faster pace, until the whole scheme ultimately and inevitably collapses.<\/span><\/p>\n

The “business model” of a Ponzi scheme is solely to gain enough depositors to pay out the old depositors (plus their “yield”).<\/span><\/p>\n

BitcoinVN staking pool limit sizes<\/strong><\/h2>\n

BitcoinVN is capping the pool size at relatively small amounts of usually just (in USD terms) mid-5 to low-6-digit amounts per pool.<\/span><\/p>\n

Why?<\/strong><\/h3>\n

Because there is simply (currently) no need to access more liquidity to facilitate the exchange operations.<\/span><\/p>\n

We neither need nor want millions of dollars worth in deposited assets. The downsides clearly outweigh the upsides for us.<\/span><\/p>\n

That might sound like a very conservative approach to business, and that’s probably because it is.<\/span><\/p>\n

That said:<\/strong><\/h3>\n

If somebody without any type of track record is soliciting its user base for millions of dollars in funding\/deposits… you might want to take your money and walk the other way (fast). Unless you like to gamble. Caveat emptor.<\/span><\/p>\n

What are the risks?<\/strong><\/h2>\n

It is a custodial service.<\/span><\/p>\n

So the usual risk advice applies:<\/span><\/p>\n