Fantom (FTM) is known for its speed and cheap layer 1 blockchain. It scales better compared to other blockchains such as Solana (SOL) and Avalanche (AVAX), and it is known as the “Ethereum Killer”. Fantom launched its mainnet in December 2019 after raising $40 million in funding. Since then, it has grown into one of the most popular blockchains, ranking among the top 10 blockchains in terms of total value locked (TVL) with a TVL of $1.3 billion.
Fantom’s high-throughput blockchain is an open source smart contract platform. It is scalable and EVM compatible, which means you can deploy and run your Ethereum decentralized applications (DApps) on Fantom. In addition to managing digital assets and DApps, its structure supports its decentralized finance (DeFi).
The Fantom consensus mechanism is an adapted version of Proof of Stake called Lachesis. It is designed to provide high-speed transactions, low fees, and near-instant finality due to the aBFT algorithm. aBFT can scale to many nodes around the world in a permissionless open source environment, providing a good level of decentralization.
The Fantom blockchain is powered by its native FTM token, if you believe in the project and want to grow your FTM stack, you may consider staking Fantom for passive income.
What is Fantom Collateral?
Mortgage is to do blockchain to improve security by locking investors’ digital assets for a period of time. This security is provided by validators, who validate transactions with their staked tokens, which become their economic incentive to act according to the rules of the protocol.
By staking FTM, investors actively participate in securing their network while earning passive income, the FTM reward. Staking means that the tokens must be locked for a period of time; however, they will still be sitting in the owner’s wallet and only they can access and unlock their funds at any time.
How to Stake FTM
The minimum stake amount to run a validator is 500,000 FTM to prevent Sybil attacks on its consensus mechanism. A sybil attack is a malicious attack that involves forging multiple identities to gain an undue advantage in a network. Due to the relatively high number of validators required, it becomes easier to delegate FTM to validators.
Some Fantom staking strategies are available:
- Liquid staking: Investors can place their FTM tokens are locked for two weeks to 365 days for better returns. Rewards vary based on the length of the staking period; the longer the FTM is staked, the higher the reward rate.
- Liquid pledge: Investors can mint sFTM during liquid pledge to improve ROI. They can also stake farm tokens, participate in liquidity mining, farm LP rewards, and more.
- Custody staking: Investors can stake on a centralized exchange (CEX) like Binance or Coinbase. The staking reward is 1%.
To stake on Fantom, users can follow these simple steps:
When it comes to the best Fantom wallets, there are several options. The Fantom Opera network is a second-layer and EVM-compatible blockchain, which means you can use any wallet that works with Ethereum, such as MetaMask, Coinbase Wallet, or a cold wallet like Ledger.
After creating an account on Fantom, you can also click the “Create Wallet” button to download your Fantom wallet (fwallet):
- Spookyswap is the largest DEX on Fantom, TVL and BOO worth $777 million are its native tokens, which can be tied to FTM for maximum liquidity Sex and Yield Farm. To stake BOO, buy tokens on exchanges or swap them in Spookyswap; connect your wallet to Fantom Opera to view your positions and start earning.
- BeethovenX is a community-driven DEX, Automated Market Maker (AMM) and DeFi powerhouse. Governed by the BEETS native token and live on the Fantom Opera and Optimism chains, it has an annual interest rate of 31%. To stake Beets, after depositing some FTM, connect your wallet to Fantom Opera and follow the procedure to choose a validator and lock time.
- QiDao is an autonomous and community-governed protocol on Fantom that allows you to borrow stablecoins at zero interest , the crypto asset as collateral. Loans are disbursed and repaid in miTokens (stablecoins soft-pegged to the U.S. dollar).
- Scream is another decentralized lending protocol powered by Fantom, similar to Compound (COMP) and Platforms such as Aave (AAVE). Users who stake SCREAM tokens can get around 58% APR, while for liquidity providers, rewards can be as high as 82% APR.
- Minimum requirement: 500,000 FTM
- Maximum validator size: 15x self-staking amount
- Minimum hardware requirements: AWS EC2 m5.xlarge with four vCPUs (3.1 GHz) and Amazon EBS General Purpose at least 4.5 TB SSD (gp2) storage (or equivalent).
- Reward: Currently about 13% APY (normal APY self-holding + 15% delegator reward). APY varies by stake percentage. For the latest APY, check out the Fantom Foundation website.
Where to stake FTM?
In addition to its native blockchain network, Fantom can be staked on many platforms, including decentralized exchanges (DEX) and custodial blockchains. Here, we’ll take a look at where Fantom can be staked so you can decide which is the best fit.
How to Stake Fantom on Ledger
Staking through a hardware wallet like Ledger is done through smart contract interaction, just like any other transaction. Staking from the Fantom fWallet by signing the Fantom FTM Ledger Nano S application is sufficient. Then, use the “Stake” menu item on your account.
How to Stake Fantom on Coinbase
In September 2021, Fantom announced support for the Fantom Network on Coinbase Wallet. Coinbase Wallet users can access and use the Fantom network and interact with Fantom DApps. Users can connect their Coinbase wallet accounts to their Fantom fWallet and do activities like stake FTM and earn rewards.
How to Stake Fantom on Binance
To stake FTM on Binance, you must deposit a convenient amount on the exchange , then head over to Binance Earn and pick the right product for you; usually a 30, 60 or 120 day lock-in period. You can choose a longer staking period for higher returns of up to 14%.
How to Stake Fantom on Kucoin
Similar to Binance, you have to deposit your FTM tokens to Kucoin and go to Kucoin Earn. Then click “Subscribe” and choose the product that is more suitable for you based on the reward and how long you want to lock up your assets.
Is it safe to stake FTM?
Staking FTM is safe because validator nodes cannot access your staked tokens; make sure not to lose your mnemonic or private key. However, as with other proof-of-stake blockchains, if the validator is not reputable and misbehaves, you may lose a small percentage of your stake. It is safer to choose a reputable Fantom validator who always has an active community, website and Twitter account.
How to Stake Other Tokens on Fantom
Fantom provides a flexible and dynamic ecosystem that enables multiple DeFi tokens to pass your investment Get passive income. To use any of the systems below to stake their native tokens, you need a MetaMask or any of the other wallets mentioned above that are connected to the Fantom Opera network. In this case, Fantom staking acts like a CEX like Binance, becoming a marketplace for trading non-native cryptocurrencies.
Here are some of the most popular tokens that are based on Fantom and can be staked on Fantom:
How to run a Fantom node
Validators run full nodes and are a key part of the Fantom network. By running a full node, validators participate in consensus to improve security and generate new blocks. Running a Fantom full node requires consideration of some technical requirements and skills, and it may be more suitable for technical operators.
The following are the requirements required to run a Fantom full node:
A step-by-step guide to running a full node
- Users can run nodes on their hardware or use a cloud provider. One of the large cloud providers such as Amazon AWS is recommended.
- They can set up non-root users.
- Install the required build tools; install Go, then Opera.
- Register their Fantom validators on-chain. To do this, the user needs to create a validator wallet, which becomes the identity of the validator in the network, needs to be authenticated, signed messages, etc.
- Run your own node. To do this, they need to restart the node in validator mode, then type “exit” to close the Opera window. Then they need to go back to the window where they started the node with:
(validator )$ nohup ./ opera –genesis $NETWORK –nousb –validator.id ID –validator.pubkey 0xPubkey –validator.password /path/to/password &
Users can refer to Fantom’s instructions, Learn the full specification and details on how to run a validator node.
How much money can Staking Fantom earn?
If you choose the shortest lock-up period (14 days) and the minimum amount. The current highest APY is 15.31%, and the longest lock-up period is 365 days.
The FTM Staking Reward Calculator will estimate how much you can earn by staking Fantom.
FTM and most crypto tokens are down more than 90% during the 2022 bear market; therefore, staking will increase the number of your tokens, but not necessarily the overall value. It’s also worth considering that staking and locking your tokens can make your funds illiquid and make it difficult to exit positions.
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