So, by now you have heard about this new project called Wrapped Stake, but what is all the hype about? well this concise article will explain this much hyped project and exactly why people have become so excited for it.
Wrapped Stake is a DeFi project which takes people’s PIVX (or other select stakable cryptos) adds them to a Staking Vault, and gives them a reward based on the staking returns generated by the Staking Vault.
It really is that simple, but the economic benefits of this are HUGE. Firstly instead of having all of your value in one single stakable coin, you will have your value spread across a few different coins which puts you at less risk from their volatility. Also because you are staking with others you will enjoy a slightly higher rate of return, the staking vault is also a custom made staking kernel so it will generally perform better than most regular wallets, this means that you will be enjoying a better rate of return than most people running on those networks.
On top of this, Because WSTK is an ERC-20 token it benefits from ALL of the ethereum infrastructure, you can store it on most wallets, including hardware wallets and you don’t need to be connected at all to recieve your rewards, you can buy your WSTK, put it in your hardware wallet and just let it sit there and as long as the Vault is running you will be recieving a chunk of the rewards being amassed, you can check back years later and see what your nest egg has developed into!
You don’t need to go through ANY KYC to collect store and hodl WSTK. WSTK is available on all good ETH-Dexs and you can easily trade it there while keeping your financial details totally private and to yourself.
WSTK incentivises the growth of the VAULT by giving higher rates of return to users who contribute directly to the VAULT. If you would like to benefit from these higher rates then please check out the Wrapped Stake Website – wrappedstake.io – It’s worth noting that while WSTK remains higher in value than the underlying PIVX or PoS tokens being staked, people will be able to arbitrage into WSTK thus taking the VAULT size higher, and the Bigger the Vault the more rewards for all the HOLDERS!
So what are the drawbacks with WSTK?
There are 2 Main drawbacks and they must be considered, Holding WSTK is very different to holding the PoS coins themselves, and this means you cannot directly benefit from other features of those coins, for example you cannot use PIVX shielded transactions if you are holding WSTK.
Secondly, WSTK could in time become a security threat to the underlying PoS coins that it has integrated, If WSTK gains more than 51% of the Staking power on a network WSTK or the DAO behind it could in theory attack that coin. Obviously there is no motive for doing so, but in the interest of full transparency we will be keeping a public watch on how much of the total staking power of all integrated assets we have. This will be public on – stats.wrappedstake.io – coming soon.
So why not Stake yourself?
Well because Staking Always requires that you Always have your node online 24/7 and while this may be easy for some people, for others this simply isnt convenient, WSTK removes the need for you to leave your laptop on and connected to the internet for you to recieve rewards. Also lets just consider how much energy this is using and also the wear and tear on your machinery. WSTK uses custom built staking software on dedicated machines to complete all the staking so our VAULT has sensational Uptimes and supercompetitive rates of return.
So now you know the pro’s and the con’s on WrappedStake are you ready to get involved with the worlds first DeFi project with underlying intrinsic PoS value? Either join as a regular hodler by buying WSTK on an exchange or become a Vault liquidity provider and see some even bigger returns, the decision is yours!
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