Staking is a form of passive income that involves blocking a particular crypto asset in your wallet for a certain period and receiving a reward for this.
You can stake the cryptocurrency through dApps in your Tangem wallet thanks to the WalletConnect protocol. Tangem Wallet allows you to connect to various decentralized finance (DeFi) apps (DApps). You can stake your coins on different platforms under different terms and conditions. A list of platforms for staking is available at https://defillama.com, a tracking service for DeFi protocols.
For example, let’s look at how to stake Avalanche (AVAX) native tokens on the BENQI decentralized platform.
Connecting Tangem to BENQI with the Wallet Connect protocol
1. Go to https://staking.benqi.fi/stake site and click the “Connect Wallet” button in the top-right corner of the screen.
2. Choose WalletConnect from the list of connections offered.
3. On the screen that appears, click Connect.
4. Go into the Tangem app and click Start on the screen that appears.
We are now connected to the BENQI platform and can begin staking immediately.
We are going to stake AVAX, the native token of the Avalanche platform
1. Return to BENQI, enter the amount of AVAX that you want to stake, and click the “Stake” button.
2. Go into the Tangem app and click “Sign and send” in the window that appears.
3. Sign the transaction (tap your Tangem card on your smartphone and enter the access code).
The amount we have selected has been staked at an annual interest rate of 7.2 %.
A slightly smaller amount than we specified has been blocked because the service has taken a commission from us.
In exchange for the blocked AVAX tokens, we have received sAVAX, the tokenized version of staked AVAX, as displayed in your wallet (if you do not see this token, you just need to add it from the “Manage Tokens” list).
As long as our AVAX is staked on BENQI, we can do what we like with sAVAX – exchange it for stablecoins and deposit them in a liquidity pool, etc.
Unstaking AVAX
On BENQI, you can unstake your AVAX tokens at any time (but no earlier than 15 days after you staked them). To do this:
1. Go into BENQI and click on the “Unstake” button.
2. Enter the amount that you want to unstake (select “Max” if you want to unstake all tokens) and click on the “Unstake” button.
3. Return to the Tangem app and click “Sign and send” in the window that appears.
4. Sign the transaction.
Our sAVAX will disappear, and the AVAX plus the interest you have made from staking it will return to your wallet.
By following this description, with the help of the WalletConnect protocol, you can connect Tangem Wallet to any other decentralized services and stake the coins and tokens that you want to earn money from this way.