Did you know that 1 out of 10 investors have already invested in crypto?
Yes, the digital token market is booming, and all you have to do is just embrace new fascinating opportunities waiting ahead.
Let’s talk here about DeFi staking platforms. With the rise of DeFi and the growing acceptance of blockchain technologies, DeFi staking has become a new model helping generate passive income from your assets. It is just a win-win for all in the crypto space.
The question of how to make an effective DeFi staking platform is the one that has kept many minds busy off late. And if you are also in the same boat, look no further. You are on the right page!
This post will show in-depth what you need to build your own successful DeFi staking platform, its key features, and the stages of DeFi staking platform development. Let’s start the ball rolling!
What is DeFi Staking
First things first. What is staking and DeFi staking?
Basically, staking is a process of locking tokens in a wallet to support the operations of a blockchain network. This process involves actively participating in the Proof-of-Stake (PoS) consensus mechanism, an alternative to the energy-intensive Proof-of-Work (PoW) mechanism. In return for their participation, stakers receive rewards in the form of additional cryptocurrency tokens. These rewards are usually expressed as APR and APY.
So, what about DeFi crypto staking? There are two ways of interpretation of this innovative financial service. In its most concise explanation, the concept revolves around staking cryptocurrency assets to serve as a validator within a layer-1 blockchain or a DeFi protocol. On the other hand, DeFi staking also refers to any DeFi activity that involves a temporary commitment of crypto assets.
How does DeFi staking work?
You deposit your crypto assets and get a return on your pledged holdings. You also get a share of coins from operations performed on the platform. In this realm, you act not only as a holder but an active contributor to blockchain networks. The process is similar to the banking system and is influenced by the platform’s inflation rate, the amount staked, and the duration of staking. However, unlike centralized financial institutions, DeFi acts without intermediaries and has relatively low entry barrier.
The whole process can be described as locking crypto assets into a smart contract and getting rewards in exchange. The crypto assets that can be staked are tokens. Tokens are cryptoassets that run on top of another cryptocurrency’s blockchain. In this realm, tokens can also be traded or held (just like any cryptocurrency). However, they also help decentralized applications to do everything from automating interest rates to selling virtual real estate.
Why Build a DeFi Staking Platform?
Staking in DeFi is growing in popularity, proving that the market size of the DeFi ecosystem was around $12 billion in 2021 and is expected to grow by $230 billion in 2030. Just in 2022, the number of DeFi users has been estimated to be 4.8 million. What is more, 37% of all financial transactions in North America were performed with the help of DeFi channels. And this is one-third of the entire financial flow.
In terms of the particular benefits of DeFi staking, we can distinguish why this concept benefits users and businesses alone.
What are the Compelling DeFi Staking Benefits for Users?
In addition to this, since the DeFi system operates with self-executing smart contracts, DeFi staking is considered safer than traditional investments.
And what if you are a business looking for new lucrative opportunities and expansion of the crypto market? Then do not fear! You have all chances to catch this new opportunity and ride it to new heights.
What are the Benefits of DeFi Staking Platform Development for Businesses?
Remember that with DeFi staking platform development, you are not just taking a step forward. You are shaping the landscape of tomorrow.
Need help in assisting with the DeFi platform development? And that’s where we come in. INC4 is a leading DeFi staking platform development company. See our services on staking platform development and apply to our experts if you want us to help you navigate the DeFi frontier.
Types of DeFi Staking Platforms
DeFi staking has become a cornerstone empowering users to engage and earn with blockchain systems in the ever-evolving crypto landscape. DeFi staking comes in various forms, each with its unique DeFi staking platform features.
Below, we will cover the types and variations of DeFi staking. They can serve as an independent product as well as extend the functionality of your existing DeFi application.
• Non-Custodial Staking
If you strive for complete decentralization and want higher blockchain security, you should pay attention to the Proof-of-Stake mechanism. Within such a consensus mechanism, a blockchain attracts validators aiming to secure the network while earning rewards.
Non-custodial staking for common users means the ability to delegate a certain amount of tokens to the validator and share the rewards. This means non-custodial staking would benefit all parties: blockchain network, validators, and token holders.
If you want your users to rely on something other than third parties, you need non-custodial staking. For businesses embarking on the journey of developing DeFi staking platforms, the incorporation of non-custodial staking emerges as a pivotal strategy.
This type is staking in the standard sense, which commonly has two forms: using validators or running a node. This means that non-custodial staking would benefit both independent blockchains seeking to establish their infrastructure and validators aiming to secure the network while earning rewards.
In short, non-custodial staking is a means to attract users seeking control over their assets, all while reducing reliance on intermediaries. By incorporating non-custodial staking, businesses can forge innovative, secure, and user-centric DeFi staking ecosystems that cater to the demands of the evolving blockchain landscape.
See our case on developing the staking mechanism, where INC4 had to build the entire infrastructure for the Ambrosus network.
• Liquid Staking Derivatives
The concept of staking by itself is all about locking up tokens so they cannot be easily used for other financial operations. Liquid staking provides a way to solve this problem. This decentralized finance solution allows users to stake their tokens while maintaining their ability to trade.
Interesting fact: the liquid staking category has recently surpassed DEXs in total value locked. This means it is one of the leading categories in DeFi.
• NFT Staking
NFT staking involves holding and locking up non-fungible tokens to earn rewards or benefits within a decentralized ecosystem. Basically, NFTs are considered unique digital assets that represent ownership of a particular item, such as artwork. Different NFT staking platforms have different use cases and reward structures mechanisms (f.e. digital art, real estate or in-game items).
• Governance Staking
Governance staking implies locking up your tokens so that the holder is eligible to participate in the decision-making process during a certain period of time. This means the user can take a more active role in managing decentralized projects, their features, and their direction by voting with tokens. The more tokens a staker holds, the more influence they have in the voting process.
• Yield Farming
This type of staking implies that the user can stake their tokens for a certain period of time to generate additional rewards such as interest or crypto. Users are rewarded proportional to their deposit in an application’s native token, granting the depositing user a higher Annual Percentage Return (APR) on their provisioned liquidity. The other users could also deposit or take a loan on a decentralized exchange.
Blockchain Platforms for DeFi Staking Platform Development
Building DeFi staking platform helps to rewrite the rules of finance and empower users to engage with blockchain networks.
Enter the world of development platforms, the tools that transform concepts into reality.
Possibly, this worldwide-known platform needs no introduction.
Utilizing Ethereum helps seamless interoperability with another DeFi protocol, all because of its widely supported across various wallets, exchanges, and applications. The smart contract functionality of Ethereum is a cornerstone of your DeFi staking platform development process. By leveraging Ethereum’s strengths, you can create a feature-rich platform that aligns with the spirit of innovation in the decentralized finance space.
Interesting fact: In 2022, Ethereum adopted a proof-of-stake (PoS) consensus mechanism. This benefits users in several ways. For example, PoS mechanisms often have lower entry barriers compared to PoW. Furthermore, PoS is considered a more energy-efficient solution, which is crucial for staking.
Enter BSC, a platform that resonates with decentralized finance’s essence and offers a fertile ground for creating transformative DeFi staking software. With faster block times and lower transaction fees than its Ethereum counterpart, BSC ensures that users can engage with your staking platform without being hindered by congestion or high costs.
Using an optimistic rollup mechanism, users can significantly increase the throughput of transactions compared to the Ethereum mainchain. Optimism uses Ethereum’s security model by anchoring transactions and data to the Ethereum mainchain. This means that any projects you build on this platform can potentially seamlessly interact with other Ethereum-based projects
Need help determining which network will best suit for creating the DeFi staking platform? Talk to our experts.
What Makes DeFi Staking Platform Successful?
Let’s uncover the ingredients of a successful DeFI staking platform.
- User-centric design
Not all staking platforms are created equal. However, those that ensure your staking users can seamlessly navigate the platform and engage in staking activities without confusion are destined to success.
- Robust security
A smart contract audit is one of the key measures to ensure the security of your DeFi staking platform.
Basically, smart contracts are the flesh and blood of your DeFi ecosystem. This is one of the most challenging aspects since the presence or absence of any bugs in these pieces of code initially impacts its reliability.
Smart contracts are a key component of DeFi protocols, helping to enable the automation of various financial activities in a decentralized and transparent manner. While a DeFi protocol is easy enough to integrate, developers need to ensure that it is functional and that its integration does not compromise security.
- Multiple token support
The DeFi landscape is diverse, and users have a range of tokens at their disposal. A successful platform recognizes this diversity and supports staking for multiple tokens across different blockchain networks.
- Crystal-clear transparency
Transparency is a key component of trust. It would be good to clearly outline all important details like the staking rewards, bonus programs, staking durations, etc.
- User incentives
Offer your users compelling incentives (such as exclusive benefits). This will help not only attract new users but also keep them engaged.
Key Features of a DeFi Staking Platform
Building a DeFi staking platform means you make the journey as easy as possible for users. But what features make a DeFi staking platform truly stand out?
Let’s delve into the essential components that pave the way for success.
An easy onboarding process is a must if you want to thrill your audience and engage more clients with DeFi staking platform development. Ensure that the registration process is simple and clear and the interface allows buying coins with different payment methods.
- Yield Calculator
Yield calculator is able to tell users how much they will earn after locking their crypto assets. Ideally, this tool should change variables, such as the lock-in period, depending on customer needs.
- Deposits and Withdrawals
The clients should easily understand how they could deposit and withdraw their assets.
- Crypto Wallet Integration
Streamline the user experience by allowing users to interact with your platform seamlessly and providing a centralized location to manage users tokens.
Your DeFi staking platform should inform users about any changes in their yield growth or rate of interest.
By introducing a particular dashboard integrated into your DeFi staking software, you give access to transaction history report and allow users to track key financial indicators. With such functionality, users can follow the status of all financial operations in your app and make decisions according to their portfolio performance.
- User Modules
Things like customizable dashboards, language preferences, or notification settings allow you to tailor your platform’s interface to each client’s particular needs.
- Admin Modules
You control all platform-related activities by introducing admin panels, such as user and transaction management, system settings, etc.
Of course, building a one-of-its-kind DeFi staking platform is not only about developing perfect architecture. Even if your DeFi staking platform is technologically advanced and offers unique features, it won’t succeed if potential users are unaware of its existence. Here marketing comes into play.
If you want to know more about marketing and growth strategies for the DeFi staking platform, then reach out to this article.
The Stages of DeFi Staking Platform Development
DeFi development is almost always a journey that fuses innovation with technical prowess. This process comprises several pivotal stages.
- Discovery Phase
Here we define your unique needs and objectives. We do an exhaustive and detailed investigation of all of the technical possibilities that will best align your project. This stage sets the tone of the whole process.
Tokenomics means the economic model and design of a cryptocurrency or token, including its distribution, utility, incentives, and overall value proposition. Our team uses this approach as it is important nor less than the architecture of DeFi products. It has a direct impact on how your business would work.
- Staking Platform Architecture
Create the technical architecture of your platform. Map out the data flow and the blockchain network you’ll build on that will shape your platform’s functionality.
- Smart Contract Protocol Development
Develop smart contracts that facilitate your DeFi staking software. It’s highly important since a DeFI protocol is built on smart contracts, so you need to audit and test them rigorously to ensure security and accuracy.
- Front-End Interface
Craft a user-friendly interface so that stakers could view their staking history, rewards, staked assets, etc. It is essential that this interface should be comprehensible even for newbies in the crypto world.
- Integrating Wallets and Connecting to the Blockchain
Users should be able to connect their wallets effortlessly. Ensuring they can manage their staked assets and initiate staking transactions is essential.
And if you live and breathe the thought of creating your own crypto wallet, see our comprehensive guide for beginners.
- Testing and Deployment
Remember, security is of paramount importance for DeFi space. Thoroughly test your platform for any vulnerabilities that could occur.
After this is done, you can deploy the first version of your product and initiate marketing strategies. Start from the beta testing, get users feedback so that would help to make the platform even better and push its further upgrades.
Let’s sum up by saying that DeFi staking has revolutionized the world by creating new chances to generate passive income. By embracing all the benefits of DeFi product, businesses can navigate their way towards becoming a leading player in the Defi ecosystem. With the services of INC4, you are able to unlock the full potential of DeFi and stay ahead of the DeFi realm!
So, what are you waiting for? Get your DeFi staking platform developed now.
How Much Does It Cost to Build a DeFi Staking Platform?
It is hard to determine an average price for building a DeFi staking platform. The cost varies depending on such factors as the complexity of the platform, the development resources you have access to, etc. What we can say is that the minimal price starts from $390,000.
Come to us, and we will help you with your DeFi staking journey by introducing multiple revenue models you can benefit from. Our accomplished team of experts is ready to provide you with invaluable assistance in streamlining the development timeline and minimizing costs.
How Long Does it Take to Develop a DeFi staking platform?
Developing a DeFi staking platform takes about 6 months. However, you should understand that there is no one-size-fits-all solution for everyone. Each project is unique, so the workload depends on factors such as complexity, the number of features the resource should include, and many other considerations.