Staking - Polkadot (DOT)
Introduction
- On-chain staking utilizes the Proof-of-Stake protocol of applicable blockchain to generate rewards through a process typically called “staking”.
- Benefits of staking on MAX versus staking on other platforms:
1. ✓ Payouts once a week*
2. ✓ Generate predictable yield with crypto
3. ✓ Stake your crypto with a few taps from your MAX app
4. ✓ Unstake anytime**
Staking protocol
- Polkadot is founded by Gavin Wood. The major distinctions come from the sharded blockchain, composed of relay chain, parachains, and bridges. Polkadot doesn’t run smart contracts. Smart contracts are developed by projects qualified for parachains, through parachain slot auctions, held every 2 years. Selected projects are predicated on community votes and sufficient DOT holdings.
- Roughly $5.8 billion are staked on Polkadot, or 51.85% (the percentage is variable) in terms of staking ratio, and ranked the 6th based on staking market cap.
- Out of the 176 relevant projects, 21 projects obtained the parachain slot access and are active now, such as Acala, Astar Network, etc.
- Audited by Atredis Partners.
Yield
- Generated from PoS activities.
- The expected annualized return is specified on the staking page in MAX App.
- Yield is paid once a week on Mondays.
Risk
- Assets are subject to losses if the private key of the validator is compromised.
- Rewards could be less than expected if the blockchain protocol contains design defects.
Fee
We collect 10% of the yield generated for our users. Users are eligible for a zero staking fee if opting to be paid in MAX Token.
Processing Time
- *Staking processing time: 2 business days. Once completed, the stake will begin to accrue yield.
- **Unstaking processing time: 30 business days. Only the stakes with “staked” status are eligible for unstaking.
