Fantom ( ) is well-known for its speed and affordable layer-1 Blockchain. Fantom’s mainnet was launched in December 2019 by $40 million of funding. It has grown to be one of the most well-known blockchains. It is currently ranked in the top 10 blockchains by total value locked (TVL), with $1.3 Billion in TVL.
Fantom’s open-source smart-contract blockchain is an open source platform. It is scalable and EVM-compatible, meaning you can deploy and run your Ethereum Decentralized Finance (DeFi). This is in addition to managing digital assets and DApps.
Fantom is an adaptation of proof–of-stake. It’s called Lachesis. The aBFT algorithm has been used to make it possible to offer fast transactions, low fees, and almost instant completion. aBFT is scalable to many nodes around the world in an open-source, permissionless environment. This allows for a high level of decentralization.
Fantom’s native FTM token powers the blockchain. If you believe in it and want to increase your FTM stack, then you might consider staking Fantom for passive income.
What is Fantom stake?
Staking is a way to make a blockchain more secure . It involves locking down an investor’s digital assets, for a set period of time. Validators validate transactions using staked tokens and provide security. This creates an economic incentive to investors to follow the protocol’s rules.
Staking FTM allows investors to actively participate in the network’s security and earn passive income (i.e. FTM rewards). Staking will require tokens to be kept in a locked location for a while. However, owners will have access to their tokens anytime they want.
How to stake FTM
To prevent Sybil attacks against its consensus mechanism, the minimum stake required to operate a validator in order to avoid Sybil losses is 500,000 FTM. Sybil attacks are malicious attacks in which multiple identities are falsified to gain an undue edge within a network. It is easier to delegate FTM (Full Time Manager) to validators when the required amount of validator is high.
There are a few Fantom staking methods that can be used
- Fluid staking: Investors have the option to lock up their FTM token for as long as 365 days, or two weeks. This will provide better returns. The length of the stake period determines the rate of reward. For example, FTM tokens that are longer than two weeks will yield a higher reward.
- Liquid Staking: Investors have the option to mint sFTM in order to increase their ROI through liquid staking. They can also stake farmed tokens and participate in liquidity mining.
- Custodial Staking: Investors have the option to take FTM on a central exchange (CEX), such as Binance or Coinbase. Staking rewards are 1%.
These steps will allow you to stake your Fantom shares:
- Minimum 1 FTM stake
- Go to the Fantom Staking Page and Click Take your FTM;
- Log in using a compatible wallet such as MetaMask. The wallet can be accessed from either your computer or mobile device. You can either create a new wallet, or access an existing one by using a mnemonic (or seed phrase).
- Transfer your FTM from an exchange to your Fantom Opera wallet.
- Click on “Staking.”
- You can add a delegation by selecting a validator, and an amount.
- Choose your lock-up time and confirm.
There are many options for optimal Fantom wallets. Fantom Opera is an second-layer, and EVM-compatible network. This means that any wallet that supports Ethereum such as MetaMask or the Coinbase wallet can be used.
You can download your Fantom wallet (fwallet), after creating an account with Fantom by clicking the “Create Wallet” button.
FTM: Where can you stake it?
Fantom can also be staked on other platforms than the native blockchain network. We’ll show you where to stake Fantom, so that you can choose the best.
How to stake Fantom on Ledger
A hardware wallet such as Ledger allows you to stake through smart contracts, just like other transactions. Signing Fantom FTM Ledger Nano S Application is all that’s required to stake from Fantom fWallet. Next, go to your account’s “Stake” menu.
How to stake Fantom in Coinbase
Fantom announced support on September 2021 for the Fantom network via the Coinbase Wallet. Coinbase Wallet users have access to the Fantom network, can use it and interact with Fantom apps. Connect your Coinbase Wallet account with Fantom fWallet to perform activities like stake FTM or earn rewards
How to stake Fantom in Binance
You must deposit a suitable amount on Binance to stake FTM. Then, go to Binance Earn to select the product that suits you best. Usually, the locked-up period is 30, 60, or 120 day. For higher returns, you can opt for a longer staking period with up to 14%.
How to stake Fantom on Kucoin
Similar to Binance, deposit your FTM token onto Kucoin. Then go to Kucoin Earn. Click “Subscribe” and choose the product that best suits your needs based on the rewards you receive and the time it takes to lock your assets.
Is it safe for FTM to be staked?
You can stake FTM as the validator node is unable to access your staked tokens. Make sure you don’t lose your private key or mnemonic phrase. You could lose a portion of your stake if the validator isn’t trustworthy or behaves badly, just like other proof-of-stake Blockchains. It is safer to choose reputable Fantom validators with active communities, websites, and Twitter accounts.
How to stake additional tokens on Fantom
Fantom is a flexible, dynamic ecosystem that allows you to stake several DeFi tokens and earn passive income. You will need a MetaMask wallet or any other wallet that is connected to the Fantom Opera network to use the following systems to stake native tokens. Fantom staking is a CEX like Binance in this instance, and acts as a marketplace for non-native cryptocurrency trades.
These are the most popular tokens, which can be staked on Fantom.
- Spookyswap has the largest DEX on Fantom with $777million TVL. BOO is its native token and can be bonded to FTM for maximum liquidity. Yield Farm can also be obtained by bonding with FTM. You can stake BOO by buying the tokens on an exchange or trading them in Spookyswap. Connect your wallet to Fantom Opera and you will be able to see your positions and begin earning.
- BeethovenX, a community-driven DEX and an automated marketplace maker (AMM) is a DeFi powerhouse. It is governed by the native BEETS token and lives on the Fantom Opera/Optimism chain. The APR for this exchange is 31%. After depositing FTM, you can stake Beets by connecting your wallet to Fantom Opera. Follow the steps to select a validator, and lock time.
- QiDao, an autonomous and community-governed protocol, sits on Fantom. It allows you to borrow stablecoins without interest and with your crypto assets as collateral. The USD is used to pay the loans.
- Fantom’s Scream decentralized lending platform is similar to Aave (AAVE) and Compound (COMP). For liquidity providers, rewards up to 82% APR can be earned by users who stake SCREAM tokens. Users who stake SCREAM tokens will earn approximately 58% APR.
How to manage a Fantom Node
Validators are full nodes that run the Fantom network and play a vital role. Validators run full nodes and participate in the consensus to increase security and create new blocks. Fantom full nodes require certain technical skills and knowledge. It might be more appropriate for techies.
These are the requirements to operate a Fantom full-node:
- Minimum requirement: 500,000 FTM
- Maximum validator size is 15x self-stake amount
- Minimum hardware requirements: Amazon EBS General Purpose SSD storage (gp2) and four vCPUs (3.1GHz) are required for AWS EC2 M5.xlarge.
- Rewards: Currently, 13% APR (Normal APY for self-stake + 15% delegators’ rewards). Based on staked %, APY varies. Check the Fantom Foundation website for the most current APY.
Step-by-step instructions for running a full-node
- You can either run a node from your hardware or use a cloud provider. It is highly recommended to use one of the major cloud providers such as Amazon AWS.
- They can also set up non-root users.
- Install the necessary building tools, then install Go and Opera.
- Register your Fantom validator Node on-chain. Users will need to create a validator wallet to do this. This wallet will become the validator’s network identity and be required to authenticate, sign message, etc.
- Start their own node. They will need to start their node in validator mode and then close Opera by typing “exit”. Next, they will need to return to the Opera window where they first started their node using the following command.
(validator)$ nohup ./opera –genesis $NETWORK –nousb –validator.id ID –validator.pubkey 0xPubkey –validator.password /path/to/password &
Users can consult Fantom’s instructions to find out more specifications and how to run validator nodes.
What is the maximum amount of money you can make by staking Fantom
If you select the minimum lock-up period of 14 days and the minimum amount, you can earn 5.01%. The current maximum APY is 15.31% with a maximum lock-up of 365 days.
The FTM Staking Rewards Calculator will calculate how much you can earn by staking Fantom.
FTM and most crypto tokens dropped by more than 90% in the bear market of 2022. Therefore, staking will increase the number of tokens but not necessarily their overall value. You should also consider that locking up your tokens and staking them may render your funds ineligible and make it difficult to exit a position.
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