How to Stake COTI with COTI Treasury

What is COTI Staking?

COTI offers token rewards through the COTI Treasury. It is a pool where users can deposit any COTI tokens and earn rewards. Users can customize their risk levels and potential annual percentage yield by choosing the amount of COTI to deposit, a multiplier, and a lock period, offering a flexible and personalized staking experience.

This article will serve as your staking guide, helping you familiarize yourself with the COTI staking process, providing a step-by-step tutorial, and offering network-specific details such as fees and lockup periods.

How to Stake COTI?

Follow these steps to stake COTI via a crypto wallet.

Step 1: Prepare a supported COTI wallet

Stake your COTI tokens using wallets, such as MetaMask or COTI Pay Viper. Install the preferred browser extension as a COTI wallet and deposit your COTI tokens into this wallet before continuing to the second step.

Step 2: Start staking COTI

Navigate to the COTI Treasury.

Enjoy the video tutorial or follow the step-by-step guide below.

Step 3: Connect your COTI wallet

Connect your wallet. Allow the application access, if you’re visiting the website for the first time.

Step 4: Make a deposit

Open the Deposits tab and click "Deposit Now" to create a delegation.

Step 5: Complete deposit details

Enter the amount of COTI you want to stake. Select the multiplier and the locking period. Note that the higher multiplier increases liquidation risks.

Step 6: Confirm deposit details and terms

Verify deposit information, agree to terms and conditions, and select "New Deposit" to proceed.

Step 7: Stake COTI

Complete the transaction in your wallet.

How are COTI Staking Rewards Generated?

The amount of the rewards received is calculated based on the current deposit APY, which is recalculated every 60 seconds. Rewards are always unlocked so that users can claim them at any time. A huge advantage that the COTI Treasury has is the accumulated rewards. You continue to earn additional rewards based on an APY that equals an unlocked deposit with an x1 multiplier (compound interest) for as long as the deposit balance is greater than 0.

COTI Treasury rewards come from the Treasury Reserve Fund, which is part of the new model designed to support the COTI ecosystem. Several factors such as staked amount, multiplier, and lockup period influence the rewards.

Multiplier
To potentially increase the APY, users can opt for a multiplier higher than x1. Choosing a higher multiplier amplifies the deposited amount within the treasury, leading to a higher APY. It's important to note that increasing the multiplier beyond x1 introduces a liquidation risk due to its impact on the deposit health factor, which fluctuates based on COTI's price. There's no multiplier for locking periods of 180, 270, and 360 days.

Locking Period

Depositors can choose to secure their deposit for 30, 60, 90, 120, 180, 260, or 360 days, which enhances the rewards they can claim. The longer period increases the APY.

You are welcome to experiment with our COTI Staking Calculator to get a better understanding of how these metrics can influence your rewards. The APY staking calculator and COTI rewards over time are great tools for this purpose.

COTI Staking Details

• View the current COTI staking APR here
• Use the COTI Staking Calculator to estimate your rewards
• Lockup: variable, from liquid to 360 days
• Deposit fee: 0.25%
• Withdrawal fee: 0.4-0.5%
• The minimum amount required for staking: 5000 COTI

Where to buy COTI?

You can acquire COTI tokens on centralized cryptocurrency exchanges. Always do your own research when selecting a reputable cryptocurrency exchange. For optimal security, it’s advisable not to leave your tokens on an exchange, but to transfer them to your non-custodial or cold/hardware wallet after purchasing. You can buy COTI here:

• Binance

Track your staking portfolio

Track the current and historical reward rates, validator count, number of unique COTI staking wallets, and the staking ratio of the COTI network by visiting the COTI Asset Page. Track COTI staking APY and delegations. Understanding these relevant data points, including COTI stats and subnet analytics, is essential to make better staking decisions. Predict your future returns with the COTI Staking Calculator. To learn how these data points could impact your staking rewards, please read more in the FAQ section on the COTI Asset Page.

Health Factor

Furthermore, depositors can monitor their position in the COTI Treasury and track their health factors. The Health Factor calculation assesses the status of a deposit, where a health factor of 1.0 indicates a liquidation risk that could result in the entire deposit being liquidated. The health factor fluctuates with COTI price changes: it increases when the COTI price rises and decreases when the price drops.

The initial deposit health factor in the COTI system is determined by parameters such as the deposit multiplier, original deposit value, and current deposit value. If the health factor drops to 1.0 or below, the deposit faces a liquidation risk. Users can add funds to improve the health factor, and there is a grace period for corrective actions. The health factor formula shows how price fluctuations and deposit top-ups affect the health factor, illustrating how a higher multiplier increases risk while additional deposits or price increases can improve the health factor.

COTI Withdrawal

You can withdraw all or part of your deposit or reward balance at any time. The withdrawal fee is dynamic and considers the duration of the deposit, regardless of the locking period. The longer the deposit remains in the Treasury, the lower the withdrawal fee will be.

If you withdraw your entire deposit, any accumulated rewards will be automatically withdrawn, and your account will be closed. Be aware that if you withdraw during an active lock period, an early withdrawal fee, of up to 2%, will apply and decrease as more time passes. All rewards earned during this lock period will be liquidated and added to the Treasury as rewards. If you claim your rewards and later decide to withdraw your deposit within the lock period, the platform will deduct the previously claimed rewards, alongside any applicable fees and fines, from the amount withdrawn.

Maximizing COTI Staking

COTI Treasury allows for an unlimited number of deposits. The rewards auto-compound, accumulating and generating additional rewards equivalent to those of unlocked deposits with an x1 multiplier.

Stake More

You can increase your stake by delegating more COTI to the treasury to increase your overall rewards. Separate delegations can have different parameters and vary in terms of multipliers and locking periods.

APY Boost

When deposited in the Treasury, gCOTI can boost the Treasury Base APY at a 1:1 ratio, meaning each gCOTI boosts the APY of 1 COTI. Users can only deposit an amount of gCOTI equal to or less than their COTI deposit in the Treasury, as the maximum boost ratio is 1:1. gCOTI is the governance token, enabling community governance over the Treasury.

Where to store COTI?

Looking for a crypto wallet? Exodus Wallet has an intuitive interface, a built-in exchange feature, and supports over 200+ assets. Manage your cryptocurrency portfolio securely and with ease using Exodus Wallet! Visit their website to learn more and download it today.

Conclusion

Staking is essential to Proof-of-Stake blockchains and comes with many benefits for investors and the network, including the potential for passive income.

• Investors earn yield from token emissions and/or transaction fees.
• Stakers become eligible for airdrops as many networks prioritize granting these benefits to them.
• Staking helps to secure the network
• Staking from multiple participants helps decentralize the network
• Stakers can participate in governance, as many PoS networks allocate governance rights based on the number of tokens staked.

Congratulations! You are now not only getting the most out of your investment with compounded returns. YOU are also (in-)directly contributing to the decentralization, and the network security of COTI and thus contributing to the long-term success of your investment! COTI needs active stakers like you to become successful in the long term.

Now share the tutorial with your friends so they can get to start staking as well!

Lastly, don’t forget to check out the COTI Asset Page for more insights into staking COTI, and drop us a message if you find this tutorial useful. Happy staking!