All you need to know about how to stake APi3
Before we dive into how to stake API3, what is API3? API3 is an open-source project that wants to deliver API services to smart contract platforms in a decentralized and trustless manner. This is achieved by allowing API providers to easily run their own oracle nodes. The API3 DAO governs this, assigning voting power to stakers of the API3 token. In addition with almost 15.000 token holders, their native token API3 currently sits at $3.71 (as of 16/12/2021) totaling a $154 Million market capitalization.
Furthermore, the current objective of the protocol is to have 50% of the tokens staked. The API3 DAO increases the APR by 1% if the staked amount is less than 50% and vice versa if the staked amount is greater than 50%. In addition, the APR minimum is 2.5% with a maximum of 75%, subject to change through the voting system of the DAO, governable.
To simplify, if the staking target is met, the APR decreases by 1% per week to a minimum of 2.5%. If the staking target is not met, the APR increases by 1% per week (or per epoch) to a maximum of 75%.
Check out the API3 Asset Profile stakingrewards.com/earn/api3 for a full overview of the Asset.
What you need to stake API3
- API3 Tokens sitting in an Ethereum compatible wallet
- Eth for fees -> API3 is an ERC-20 Token so will have standard eth transaction fees
Step 1 – Connecting to the API3 Staking Page
Go to https://api3.eth.link/#/ and connect your wallet by clicking on ‘’Connect Wallet’’, on the top right corner.
Step 2 – Depositing your API3 tokens
After connecting your wallet, you need to Click on ‘’+Deposit’’ button.
Step 3 – Confirming the number of API3 tokens you want to deposit
Type in the number of tokens and then approve the transaction. You may also have to approve the transaction on the wallet you connected, this will show up as a popup.
Step 4 – Staking your tokens
Once you have deposited your tokens, you can now click on the “+Stake” button. This will bring up a pop-up asking how many tokens you would like to stake.
Step 5 – Confirming how many tokens you would like to stake
Similar to the deposit screen, input the amount of API3 tokens you would like to stake and then click the “Stake Button”
Conclusion
After following these steps, you can agree that the process is quite simple and with the help of Staking Rewards, nobody can stop you from staking API3. Check out our in-depth Earn Page for API3 and Calculate your own earnings for API3 on our custom advanced calculator.
Just don’t forget that the rewards you get from staking have a one-year lock-up period and your staked balance has a 7-day lock-up period. These are lock-up risks associated with staking that could affect the overall value of your position in dollar terms, depending on the market price of API3.