The OXY Staking Programme – Everything you need to know
The Oxygen Protocol (OXY) is an innovative DeFi project that aims to offer prime brokerage services. Although the project started by offering lending and borrowing services, it intends to expand its DeFi basket to reflect the growing demand in the market.
OXY is built on Solana, one of the fastest and most affordable blockchains in the world. Nonetheless, the Oxygen Protocol will launch its new staking program on April 22 this year. In this review, we look at this program in detail, what it has to offer and whether indeed it is worth your time.
What is Staking?
Before we get into the details of the OXY staking program, it is important to first of all highlight what staking is. Well, staking is a way to earn passive income using your crypto assets. The only thing you need to do is commit a portion of your assets into a liquidity pool where they will be “locked” for a predetermined period. This could a few months to a few years.
In return, you will earn an annual yield for the assets you’ve staked. Different protocols offer different annual yields. Some however offer as high as 20% in returns. Also, keep in mind that staking is done using the native token of a given protocol. For example, if you wanted to partake in the OXY staking program, you must stake the native OXY token to qualify for these rewards.
The OXY Staking Program
The OXY Staking program, as you can guess from the name, is a new initiative by the Oxygen Protocol that will allow users to earn yields by staking the native OXY token. According to reports, the new staking program will start rolling out on April 22nd this year.
The Oxygen Protocol is hoping to make the program as versatile as possible. This will open it up for all manner of crypto investors. The program is also offering a broad pool of rewards and staking options to attract different investors. If you have ever wanted to earn some passive income using your crypto assets, then the OXY Staking program is worth looking at.
How Long Will You Need to Stake?
As noted above, staked assets will be locked in pools for a specified period. Now, the amount of time you want to stake depends on your investment strategy. However, the longer you lock in your assets, the higher the yield will be. But this also means that you will be exposed to changes in the price of the native token for a longer period.
The OXY staking program appears to factor in these risk factors. For this reason, you are given a very flexible duration to stake. According to the project’s whitepaper, users can stake a minimum of 7 days or a maximum of 2 years.
The program also allows users to unstake their assets anytime they feel like it. The only thing you will have to do is give a 7-day notice beforehand. In essence, the OXY program is trying to make it easier for investors to stake the OXY token flexibly, and within their risk appetite.
What Type of Rewards Will the OXY Program Offer?
Rewards are the yields that you earn from the staked assets. The annual yield is calculated as a percentage of the total value of the staked assets. According to the OXY whitepaper, users will earn a base reward of 6% of total staked assets.
The yields will however be paid out in two phases. The first one will be paid as a locked OXY reward which will be capped at 3% of total staked assets. There will also be unlocked OXY tokens, payable as part of the second reward scheme. They are also capped at 3%.
The OXY Staking program has published clear-cut payment schedules for yields on its whitepaper. This brings a level of predictability to the whole thing.
The Duration Boost
It is also important to note that users may qualify for boosted rewards if they decide to stake their OXY for longer. The protocol calls this the “Duration boost”. The boost is payable depending on how long the assets will be locked. Here is a breakdown of how it will work:
- For assets staked for 7 days, only the base yield of 6% will be offered.
- As for assets staked for over 3 months, a 7% yield will be applied.
- 6 months – the staked asset will attract a yield of 8%.
- 9 months – yields of 9%
- 12 month – Yields of 10%
- 18 months – Yields of 12.5%
- 2 years – yields of 15%.
Please also keep in mind that the 2-year yield of 15% is the highest you can earn under the OXY staking program. Also, the reward scheme listed above is not permanent. The yields can change from time to time depending on several factors.
How To Get Involved with The Program
So, right now the OXY staking program is still under development. The official launch is a few weeks away. We are still not sure how it will be opened to the public. However, the OXY protocol notes that it is working with several exchanges and custodians to provide a seamless way for users to stake in the coming weeks.
The protocol also notes that it plans to offer both on-chain and off-chain participation. Details about how to stake the OXY token are likely going to come out in the run-up to the April 22 launch. You can follow OXY on social media or join its discord to get regular updates on the same.
Why The OXY Staking Program Is a Good Idea?
The OXY staking program is going to offer several key benefits for investors. First, the staking rewards are at par with the industry standards. Not many staking programs can deliver up to 15% in annual yields.
OXY is also working hard to make the program more accessible and flexible to the average user. While we have not yet seen details about how users will participate, the protocol is dedicated to making this process as simple as possible.
Users will also get more flexibility in deciding how much time they want to lock in their assets. The minimum of 7 days still attracts a reward of 6% which is quite commendable. Also, users can unstake their tokens whenever they want.
Limitations Of the OXY Program
Well, as with all staking programs, there are several risks to keep in mind. For starters, once the staked assets are locked, you cannot access them. So, even if the price of the underlying asset goes up or down, you will not be in a position to react immediately.
You can still issue a 7-day notice to unstake the assets at any given time. But there is so much that can happen in the crypto market within 7 days.
Other than that, the OXY Staking Programme still offers decent opportunities for steady passive income. As more and more details about the program start to come out, investors will get a clear picture of the opportunities OXY offers. As of now, we just have to wait till April 22 for the official launch.
* We hope this information will help you in your investment process, but this is not investment advice. Every investment carries risk, especially in this industry, so DYOR before making a decision.