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. Staking on your own can be complicated, often requiring technical expertise and specialized hardware. Bybit On-Chain Earn simplifies this process by managing all the complexities — gas fees, node operations, and reward distribution — so you can stake popular PoS cryptocurrencies like ETH and SOL with just a few clicks.

 

 

 

 

 

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: Regular airdrops, rewards, and innovative on-chain opportunities provide users with more ways to grow their returns.

 

 

 

 

 

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:

 

 

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. 

• 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.

 

Bybit helps minimize many risks like validator selection, slashing risk and gas fees, but Bybit does not assume any responsibility for potential asset losses due to contract vulnerabilities, hacking events, or any rug pull risk. Users are responsible for doing their due diligence before investing in any projects.