Plasma.Finance recently announced that PPAY staking will soon be available on its platform.
Plasma.Finance has been receiving requests from its community about PPAY staking. In the announcement, Plasma Finance reveals that PPAY staking is, indeed, coming soon to its platform.
— PlasmaPay & Plasma.Finance (@Plasma_Pay) March 4, 2021
Staking has become one of the most popular means through which people earn passive income from decentralized finance (DeFi). Staking also has to do with locking up your tokens as savings and getting interest from them. With PPAY staking, PPAY users will reportedly be able to gain yields when they save their PPAY.
PPAY is a native token of Plasma.Finance. As a token, it has unique features that make it stands out in the PlasmaSwap decentralized exchange (DEX). Using the Plasma Gas Station, PPAY can be used to natively pay gas fees for all DeFi transactions. With this, you don’t have to worry about the lack of Ether in your crypto wallet.
From the Plasma.Finance dashboard, PPAY can be purchased directly with a card or bank account. For swapping, PPAY has been listed on top DEXs like Uniswap, Mooniswap, and SushiSwap. It is also available on the Hotbit and Bithumb exchanges.
Plasma.Finance has now brought new staking opportunities for PPAY. As a result, Plasma.Finance has also introduced xPPAY.
Introducing xPPAY for Direct PPAY Staking
Before now, PPAY holders have been staying on Uniswap and SushiSwap through the existing PPAY pools. Now, Plasma.Finance has brought PPAY staking to its own native platform. As a result, the platform has introduced the xPPAY token, through which rewards will be distributed.
xPPAY is a derivative asset from PPAY. It represents the PPAY shares of users in the staking pool. xPPAY also includes “yet-to-be-paid future profit” and can be traded in the PPAY/xPPAY pool on PlasmaSwap. Furthermore, xPPAY can be used to generate more revenue by adding liquidity to the PPAY/xPPAY pool.
As PPAY is the token used for speculation and trading, xPPAY is seen as the “stock share” of the Plasma.Finance platform. Just like dividends can be gotten from stocks in CeFi, users are also entitled to get future earning on the platform using xPPAY.
Direct PPAY Staking Through Savings
To be able to stake PPAY tokens from the dashboard directly, Plasma.Finance users just need to access the Savings option. Users have to make sure that their web3.0 wallet is connected. Once the connection is sure, users can simply deposit their PPAY tokens in order to stake them as Saving.
Once that is done, the user will receive an Annual Percentage Yield (APY). This APY will be automatically returned as xPPAY in a 1:1 ratio for every staked PPAY. To unstake the deposit, users will simply have to redeem their xPPAY for PPAY.
Staking Rewards on PPAY
Earning staking rewards on PPAY is dependent on some factors. First of all, it depends on the user’s share of the staking pool. Usually, the larger staking share results in the bigger part of the awards distributed, in equal proportions. For example, if the staker owns 20% of the staked amount, he becomes entitled to 20% of the distributed staking awards.
Another factor that determines the earned staking rewards is the trading volume on PlasmaSwap. According to PPAY governance, 0.02% of all PlasmaSwap trading volume will be converted into PPAY tokens. These tokens will then be distributed to stakers according to the total PPAY they have staked.
Utility on Plasma.Finance is another factor that determines the staking rewards to be earned. Through the staking smart contract, rewards will also be automatically calculated and accrued. This includes any returns from the Plasma.Finance infrastructure. The more popular the Plasma.Finance platform becomes, the higher the demand and utility of PPAY.
Features of PPAY Staking
Staking of PPAY can be carried out for a minimum period of 24 hours. After 24 hours, stakers are free to withdraw their stakes whenever they like. Also, all rewards that the stakers will earn will be included in their withdrawal.
Since it includes future profit, the price of xPPAY will always be higher than the price of PPAY. To ensure security for staking, the PPAY Savings smart contracts have undergone an auditing process by Certik, a security aiding firm. As a result, you can enjoy passive income that is backed by blockchain security.
Before now, Plasma.Finance introduced the Flash Rebalancer, its latest feature to be released alongside the PlasmaSwap DEX.
As of the time of publication, Plasma Finance price was $0.269198, with a 24-hour trading volume of $4,138,588. PPAY price also increased by 14.5% over the last 24 hours. Besides, it has a circulating supply of 130 million PPAY coins and a max supply of 1 billion. Uniswap (v2) is also the current most active market trading PPAY.
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