Staking & Saving
As specifics may differ from one platform to another, in general terms staking protocols resemble regular bank savings accounts, or term-deposits. It rewards users for their deposits of a pre-determined asset - in this case SNT - into a pool for a certain period of time, and normally, the longer you leave your asset in the pool, the greater the rewards you will get.
To pay the set interest to the depositors and remain solvent, the protocol may lend out part of the staked funds to other users at a higher interest rate, keeping the spread.
Fusion offers three different types of staking, each one with its own characteristics and specifics: Call Staking, Bond Staking, and Liquid Staking with fNFTs.
Call Staking is very similar to your bank savings account product. With it, users can deposit their funds to receive daily interest payments, and withdraw both their principal and the interest whenever they want, with no restrictions or time-locks. It is perfect for those looking for more flexibility and access to their funds 24/7.
When depositing your funds on a Call Staking Pool, users will only start accruing interest after 7 days. If the depositor decides to withdraw before the 7-days' period, no interest is paid.
With Bond Staking users have to lock up their deposit for a pre-determined period of time before being able to withdraw both the principal and the accrued interest. Users are able to chose between a range of different maturity dates, and normally the higher the lockup period, the higher the interest paid to the depositor.
Important! Once deposited, users are not able to withdraw, trade, or move their funds for the entirety of the lockup period. This is hard-coded into the staking pool smart contract, so there is no way for the user to retrieve the funds before the maturity date once the deposit has been made. Extreme caution is advised.
With our Liquid Staking protocol users can chose between different time-stamps to lockup their deposits, and similarly to what happens with Bond Staking, they are not able to withdraw their principal and/or interest before the maturity date is due. The main difference between the two is that with liquid staking users receive a fNFT upon depositing, that represents the amount of SNT they have locked up plus the interest that will be paid on the maturity date. This fNFT can be freely traded on any NFT marketplace that supports ERC1155, or via OTC and direct transfers to other users.
Income Staking is exclusive to Nova Network and aims to offer users a reliable way to generate income out of their SNT savings. It works similarly to Bond Staking, where funds are locked for a pre-determined period of time, but with Income Staking, instead of getting a lump-sum payment towards the end of the period, interest accrue in real-time, and users are able to withdraw the accrued interest any time they want, making it an excellent way to consistently generate income that can be liquidated and used.