Staked Rewards % and Auto-compounding
Rewards % is the estimated annual yield rate from staking the asset. The reward rates can vary based on a number of factors related to the blockchain network of the asset you are staking.
Some networks allow your returns to be compounded by re-staking your rewards. For longer term investors, this can be an attractive way to earn more. By default, Bitbuy users benefit from automated compounding via restaking where it is allowed by an asset. With auto-compounding, you earn a reward on both your original staked amount, as well as the auto-staked rewards.
This is the minimum amount you must stake. It differs by asset, but Bitbuy strives to keep this amount low, in order to make staking accessible to more users.
This is how often you will accrue or receive rewards for staking. This is set by the blockchain network you are staking assets on. This may vary from a few days to a few weeks.
Bonding periods, also known as warmup periods or activation periods, are the amount of time a blockchain delegator waits before their asset starts earning rewards. This period can vary between a few days to a few weeks, and are set by different networks.
Unbonding periods, also known as cool down periods, are the amount of time it takes to unstake your staked assets. Even though many networks keep your funds locked during an unbonding period, Bitbuy provides its users with the convenience to unstake anytime.
In proof-of-stake blockchains, validators earn staking rewards for staying online and acting as per the rules of the network, and they miss out on rewards if they are offline or fail to validate transactions properly. In simple terms, slashing is the penalty mechanism to ensure that validators are doing their jobs properly.
Our staking infrastructure is operated by Figment, an industry leading operator with a large dedicated DevOps and Engineering team that continuously monitors and operates our robust infrastructure to reduce the likelihood and severity of downtime or a slashing event. Figment validators have an excellent track record, and Bitbuy provides an extra peace of mind as we may, at our sole discretion, reimburse clients in the unlikely event of slashing penalties.