Introduction to Bybit On-Chain Earn

What is Proof-of-Stake (PoS)?

Proof of Stake (PoS) is a consensus mechanism that determines who validates the next block based on the number of tokens they hold and are willing to "stake" as collateral. This process often requires a significant financial commitment, specialized hardware, and assets to cover node operation costs. Additionally, there are risks like slashing (penalties for improper validation) and liquidity issues due to unstaking delays.

 

Recognizing these challenges, Bybit introduced On-Chain Earn — a simplified staking solution that allows users to participate with minimal capital.

 

 

 

 

 

What Is Bybit On-Chain Earn?

Bybit On-Chain Earn is an easy-to-use staking service that lets you earn rewards by staking your crypto directly on the blockchain. Users may need technical knowledge and some infrastructure to stake on their own, often requiring technical expertise and specialized hardware. Bybit On-Chain Earn simplifies the process by managing aspects such as gas fees, node operations, and reward distribution, making it easier to stake popular PoS cryptocurrencies. The process is easier, but rewards are not guaranteed. Customers using Bybit On-Chain Earn acknowledge that rewards are not guaranteed and accept the associated risks.

 

 

 

 

 

Benefits of On-Chain Earn

Simplifying crypto staking to provide steady returns on your assets while enhancing blockchain security and decentralization.

• Hassle-free Staking: A streamlined process with no need for hardware or technical expertise — users can start staking with just a few clicks.

• Accessibility and Reduced Entry Barriers: On-chain Earn allows users with minimal assets to join staking, encouraging broader network participation.

• Diversification of Earnings: On-chain Earn empowers users to diversify their earnings by engaging in various DeFi strategies.

• Incentives and Future Innovations: Airdrops, rewards, and innovative on-chain opportunities may provide users with extra benefits.

 

 

 

How Do Different Forms of On-Chain Earn Work?

PoS networks have evolved, and staking comes in various forms, which can differ based on several factors. The structure of each staking project may vary depending on the network and the type of token you are staking. Below are some key aspects that differentiate these staking models:

 

*The value of crypto assets may fluctuate; staking and rewards are not guaranteed. All investment responsibilities lie with the user.

 

Please note that Bybit's On-Chain Earn may not support all types of staking models listed above. We are constantly working to offer a diverse range of quality staking projects. For the latest information on supported tokens and networks, always visit the Bybit On-Chain Earn page.

 

 

 

 

 

Risks of On-Chain Earn

While On-Chain Earn offers the opportunity to earn rewards, there are some risks to consider, including but not limited to the following: 

• Market Risk: The value of your staked cryptocurrency can decrease if market prices drop.

• Liquidity Risk: Some networks may lock your assets for a period, preventing access, and there could be an unstaking delay.

• Technical Risk: Blockchain issues like technical failures or attacks can impact staking performance, leading to delays or potential loss of rewards.

• Inflation/Reward Rate Risk: Reward rates may be lower than expected or the network’s inflation policy may change.

 

Bybit helps minimize many risks like validator selection, slashing risk and gas fees, but On-Chain Earn may offer potential rewards, but crypto assets carry risks such as value fluctuations, liquidity constraints, or technical failures. Users should conduct their own research before investing. Bybit is not responsible for losses, whether arising from or not directly resulting from risks inherent to crypto assets, such as contract errors or security breaches.