We continue to get acquainted with the 1inch platform and its functionality. Today let's understand what staking is and how you can stake on 1inch. Go!
Staking is a process wen the user places da tokens on the platform, blocking them to use for various needs, such as increasing liquidity. Well, the user is rewarded for "locking" the assets.
There are different conditions for staking; for example, on some platforms, the locking is for a certain period with the possibility to withdraw funds at any time, somewhere users are not allowed to withdraw tokens before the appointed time. Sometimes a certain fine may be imposed for early withdrawal.
Now let's remember what 1inch is. It is a decentralized cryptocurrency exchange, aka DEX, which is based on three protocols:
Liquidity Protocol is responsible for providing liquidity to the user
Aggregation Protocol is a protocol for delivering liquidity from other DEX exchanges to provide more liquidity to 1inch.
Limit Order Protocol is for placing orders.
1inch works on the principle of DAO, which means all users who staked their 1INCH tokens are able to get the governance opportunity. And they can also get additional rewards. Now that you get how the platform works, so you can finally learn about 1INCH staking!
1. Go to the platfrom and click “Launch dApp”
2. Connect you wallet
3. Click on the “Menu” button
4. Choose “DAO”
6. Choose the amount of tokens you want to stake and press “Stake tokens”
7. Approve the transaction
8. The End!
We have variety 1inch guides, you can check them here.