Sharded blockchain Polkadot lately set tongues wagging after confirming the subsequent batch of parachain auctions on its experimental community Kusama. However because the crypto neighborhood waits with bated breath for candidates to announce themselves, it’s value remembering that Polkadot is already alive and kicking in its personal proper.
Based by Ethereum O.G. Dr Gavin Wooden, Polkadot has lengthy been touted as a viable rival to the world’s best-known sensible contract community, a consequence of its subtle infrastructure, thriving developer neighborhood, and promise of true interoperability between purposes operating on separate chains.
Already a top 10 cryptocurrency by market cap (DOT), the platform has been 5 years within the making and finally goals to assist a worldwide community of interoperable parachains and parathreads seamlessly speaking with one another. Within the close to future, deploying on Polkadot might be a no brainer for savvy builders – each from a price and efficiency perspective.
However that’s all for the long run. Within the right here and now, the flourishing Polkadot ecosystem is such that customers can benefit from varied alternatives whether or not their curiosity lies in buying and selling, gaming, constructing, privateness or IoT. Listed here are 3 ways to leverage the Polkadot blockchain proper now.
Stake DOT to Earn Yield
As a result of Polkadot makes use of a Nominated Proof-of-Stake (NPoS) algorithm, staking is integral to the safety of the community. In direct staking, you’ll be able to either be a nominator, tasked with nominating validator candidates whom you belief that can assist you earn DOT rewards, or a validator, validating proofs from collators and taking part in consensus with different validators.
Within the case of nominating instantly on Polkadot, a minimal of 80 DOT tokens is required – simply over $2,000 value at right now’s costs. Nonetheless, as a result of there’s a most of 22,500 nominators, having enough DOT tokens doesn’t truly assure you a staking berth.
Setting up a validator node on Polkadot is a bit more complicated because it requires vital system administration expertise. What’s extra, the minimal stake wanted to be elected as an energetic validator is dynamic and varies over time. The typical returns Polkadot validators can anticipate are within the vary of 10%.
In the event you discover the thought of direct staking a bit of daunting, there are different providers that help you take part. Binance, for instance, enables you to use DOT for high-yield farming of recent tokens on its Lauchpool; customers are additionally free to stake DOT in Binance Locked Staking to earn as much as 31.49%.
Kraken is one other top-tier cryptocurrency trade that rolled out assist for Polkadot staking final yr, with yearly rewards of 12%.
Use Dot.Finance’s DeFi Suite
One other nice option to maximize your DOT yields is to leverage DOT.Finance, a devoted DeFi aggregator for all the Polkadot ecosystem. Reasonably than merely staking DOT to earn a set share, DOT.Finance helps customers generate a greater fee of return by using revolutionary yield optimization methods throughout a swathe of DeFi dApps.
The cool factor about DOT.Finance is that its sensible contracts robotically compound your staking returns on the optimum frequency to extend APY. Within the phrases of the crew, “it’s like farming with a tractor as an alternative of pulling a yoke in your shoulders.”
And it’ll quickly get even higher: within the close to future, DOT.Finance will permit customers to carry Polkadot Index tokens, enabling them to achieve publicity to quite a lot of Polkadot-based belongings.
Fly to the Moon(beam)
The upcoming Moonbeam launch on Polkadot presents yet one more alternative to earn. Moonbeam, for the uninitiated, is a brand-new Ethereum-compatible sensible contract platform that simplifies the method of constructing natively interoperable decentralized purposes.
Moonbeam’s Take Flight token occasion will get underway on September 7 and goals to thank the Moonbeam neighborhood for its continued assist by shelling out 80 million Glimmer (GLMR) tokens throughout three rounds, all of which require a whitelist to take part (register here).
Whereas the early entry spherical is particularly geared in the direction of key venture supporters (Moonriver crowdloan individuals, PolkaPet holders, and so on), the second is far more open: when you’re a member of the Telegram channel or Discord server, you’re just about good to go.
One nifty situation of Take Flight is the low contribution threshold, which means on a regular basis buyers get the identical alternative to earn as main bag-holders. The three staggered rounds must also guarantee a large cross-section of individuals, all of whom can have a stake within the Moonbeam Community’s success.
Nicely, there you could have it: three strong choices for these trying to leverage Polkadot earlier than a single parachain has launched. You’re welcome.