As the Nerve Network allows rewards in NVT for staking assets in other blockchains, it is interesting to note the benefits of providing a stablecoin – in particular DAI.
Staking (derived from the POS or Proof-of-Stake consensus mechanism) is one of the many grateful advantages that cryptocurrencies provide us. The act of being rewarded in coins for helping to guarantee both the security and stability of a given network is a real advantage that leads several investors to invest in projects that have this scheme.
The mere fact of being rewarded can already be considered a benefit, however, some people find negative points in this. One of the main issues raised by some is that your investment is subject to possible price fluctuations, depending on the market conditions of the currency you chose to stake.
Now, staking using a stablecoin as a collateral (cryptocurrency paired in some fiat currency) would solve much of that concern, wouldn’t it? This is what we are going to talk about now, specifically mentioning the SO.
Cross-Chain Interoperability already implemented by Nerve Network
With the mainnet from Nerve Network having been launched two months ago, a particular feature has been attracting the attention of many investors: the possibility of receiving rewards in NVT (Nerve Network’s own token) while staking assets in other blockchains.
That is, it is already possible to win a ROI in NVT for making contributions in Ethereum and NULS and, in the near future, in Binance Coin and Bitcoin. However, there is yet another way to benefit from staking without taking risks with price fluctuations. Just use the stablecoin DAI and normally earn NVT rewards! Recalling that the ROI varies according to the number of currencies in stake and that the initial value is high, as shown in the table below.
The current market landscape for DAI
DAI is an ERC-20 cryptocurrency pegged to the U.S. dollar and is issued by a smart contract platform on the Ethereum Blockchain. It is managed and maintained by the MakerDAO foundation.
Stablecoin has several positive aspects, such as:
– RESISTANCE TO CENSORSHIP: DAI is governed by smart contracts, so it is the only stablecoin that cannot be apprehended or censored by governments or regulatory bodies.
– TRANSPARENCY AND AUDITABILITY: DAI is collatered by Ethereum, which is immutably verifiable in its Blockchain.
– PRIVACY: Making transactions with DAI does not require any account opening or KYC process. It is by far the most privacy-focused stablecoin available on the market.
In addition, it currently occupies the Top 40 in market capitalization, being in position # 34 according to CoinMarketcap – at the time of writing this article.
Therefore, nothing better than combining these positive points with the possibility of earning coins for staking using the DAI. In fact, this is quite a tool offered by Nerve Network to all DAI holders.
It is also worth remembering that the steps to do DAI staking on the Nerve Network are the same as those described in this tutorial on the allocation of Ethereum.
About Nerve Network
Nerve is a decentralized network of services in digital assets and a blockchain protocol of cross-chain interactions based on the NULS microservices and developed with the ChainBox, also from NULS. It aims to establish a cross-chain network of asset interaction and providing all the necessary support for the Defi application ecosystem. Nerve allows all holders of digital assets to enjoy truly secure, free and transparent DeFi application services.