Curious about how staking generates returns? Bake will explain it for you.

Cryptocurrencies Available for Staking

Not all digital assets can be staked. It’s only possible on blockchain networks that adopt Proof of Stake (PoS) or Delegated Proof of Stake (DPoS) algorithms.

Bake, Safe Delegated Proof of Stake Algorithm

Users holding cryptocurrency delegate their stake proof to validators as evidence that they hold a specific amount in the network. **Validators verify network transactions and participate in block creation to maintain network security.

As a reward for this, they receive cryptocurrency.** You can think of it as similar to interest. Rewards are mainly determined by the amount and time contributed to block creation and verification.

In summary, staking generates returns by holding cryptocurrency and contributing to network stability and security to receive rewards. Additionally, the rewarded cryptocurrency is automatically re-staked to create a compound effect.

Validators Working with Bake

Bake works with top-tier validators that have been operating stably for many years

Is Delegating Proof of Stake Risky?

Since only the proof of stake of cryptocurrency is utilized and ownership remains with the user, you can safely receive guaranteed returns without worrying about losses.

Additionally, BAKE is a non-custodial decentralized wallet where all ownership and management rights of assets belong to the customer.

Assets cannot be withdrawn without the wallet owner’s permission. I have complete ownership and control over my cryptocurrency.