One of the most exciting developments to take place in blockchain technology is the creation of new financial models using cryptocurrency. DeFi Staking is one such model: when you ‘stake’ cryptocurrency, you lock the coins away on a decentralized exchange (DEX) platform in order to benefit from yield farming, liquidity mining, or liquidity provisioning, all of which help the exchange to function (by providing liquidity and potential for loans), come with their own rewards for the user who put up the stake. It all comes down to earning more cryptocurrency as a reward for your stake, much like earning interest on a savings account or dividends from a stock portfolio.

If you’re thinking of building a financial platform using this model, it pays to understand how DeFi staking platforms are made.

DeFi Staking Platform development is a form of blockchain development and consists of five key elements: features, tokenomics, smart contract, crypto wallet, and security testing.

  • Features – A DeFi Staking Platform should make it easy to convert fiat money to cryptocurrency, as well as conduct deposits and withdrawals. It should have a gains calculator and be able to display charts and reports on user finances.
  • Tokenomics – The platform should have its own token with use cases on the platform and possibilities outside it. This step also covers the accepted currency for staking, terms and limitations, fees, interest, and payout structure.
  • Smart contract – The programs that actually make the platform’s tokenomics work on the blockchain and also connect your blockchain to others. They essentially automate financial services.
  • Crypto wallet – Your platform should be able to integrate popular software wallets, e.g. Metamask, and also cold wallet devices such as Ledger and Trezor devices.
  • Security – Thorough security testing should be conducted before deploying your DeFi platform. Remember, any activity on the blockchain is immutable, making hacks or errors hard to fix after the fact.
  • Deployment and maintenance – Regular updates will be necessary to keep your platform compatible with newer DeFi protocols.

DeFi Staking is an attractive industry, but platforms take considerable expertise to build. That’s why it’s recommended to contract an experienced blockchain development services company to handle the project.

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