When it comes to layer-one blockchains, Fantom is among the most well-known. It has a TVL of over $1.2 billion, putting it in the top 10 blockchains by this metric. Andre Cronje was one of the most active developers in DeFi and a member of the Fantom Foundation; yet, despite his departure, Fantom is still a leading L1 blockchain alternative and has been called a "Ethereum killer," along with Solana, Avalanche, and others.

Technical indicators suggest FTM still has some climbing to do before it can return to bullish zone. As a result, staking Fantom (FTM) is more crucial than ever if you are an FTM owner and a Fantom bull in order to generate passive revenue from your cryptocurrency holdings. Follow the steps in this manual to learn how.

We won't be covering the inner workings of Fantom here, but if you need a refresher, have a look at our in-depth tutorial explaining what Fantom is and providing an overview of the Fantom ecosystem.

What Is Fantom Staking?

Staking FTM coins is the method by which the Fantom blockchain is protected. This is accomplished via validators, who verify transactions by using the tokens they have staked as an economic incentive to follow the protocol's rules. For security against sybil attacks on its consensus mechanism, validator nodes hold at least 500,000 FTM coins in cold storage.

The Fantom network employs a custom proof-of-stake consensus process called Lachesis, which operates on top of its own separate consensus layer. The second layer of Fantom, known as Opera, is protected by a consensus engine based on the directed acyclic graph (DAG) algorithm and asynchronous Byzantine Fault Tolerance (aBFT). DeFi and other DApps are hosted on the Opera application development layer.

Watch this video to find out more about the Fantom blockchain:

FTM Staking Methods

Here are the simple steps you need to take to wager on Fantom:

• Possess at least one FTM.
• Click the "Stake" button on the Fantom staking page.
• Enter your credentials using a suitable wallet, such as MetaMask.
• Select Staking from the menu.
• Select a validator and a delegation amount, and then click "Add Delegation."
• Choose a time limit and press "Confirm."

Staking requires no minimum lock-up period and earns the standard incentive rate. The maximum incentive rate is earned after a lock-up period of 365 days. Fantom need seven days to unbond. You also have to pay validators a 15% delegation fee.

Please go to the Fantom staking page for further details.

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Can I Feel Free To Stake My FT?

The validator node cannot access the tokens you have staked, hence this is the case. If the validator is not trustworthy and acts inappropriately, however, your stake may be reduced. Credible Fantom validators maintain vibrant online communities, blogs, and social media platforms like Twitter.

You can get your money out of the investment before the lock-up time is up, but you'll have to pay a penalty.

Which Good Wallets Work Best and Why?

The Fantom Opera layer is a blockchain that is compatible with the EVM. This means you can store your Ether in any wallet that supports the cryptocurrency.

• Metamask
• Digital Currency Storage with Coinbase
• WalletConnect
• A ledger (or a safe)

How to Operate a Scam Validation Server

A Fantom validator node requires a minimum stake of 500,000 FTM to operate. Fantom states that there are five stages to running a node.

Step 1: is to start a cloud instance, which involves running a node on your own computer or through a cloud service.

Step 2: create a user who is not root. This is a technical stage in which you'll need to tweak some parameters.

Step 3: Put in place the necessary equipment.

Step 4: Open a validator wallet and register as a validator.

Step 5: Start the validator node in operation.

The validator incentive is 15% delegator reward plus the standard APY on the amount pledged. Depending on how much of the total FTM supply is staked, the annual percentage yield will change.

How Much Money Could You Make If You Staked FTM?

With a 14-day lock-up period and the lowest possible investment, your return will be 5.01% at most. The highest annual percentage yield for a 365-day lockup period is now 15.31 percent.

The FTM staking rewards calculator is a great tool for calculating the rewards for staking in Fantom.

What Other Tokens You Can Bet on Fantom and How

Fantom's thriving DeFi ecosystem makes staking a wide variety of DeFi coins a viable option for investors. Here are a some of the most profitable staking Fantom protocols.

Spookyswap

SpookySwap is a decentralized exchange (DEX) that uses the BOO token. Token swaps, yield farming, and other DeFi features are available to users. Single-staking pools of BOO can be used to generate income, or BOO can be bonded with FTM to increase liquidity and yield.

Ninth Beethoven

Weighted investment pools, stable pools, and token swaps are just some of the offerings that Beethoven offers as an AMM. The annualized return on the BEETS token is 31%.

QiDao

QiDao is a crypto lending protocol that charges no interest and allows users to mint stablecoins on user-provided collateral. Qi's annual percentage rate (APR) varies from 0% to 40% for terms of 6 months to 4 years.

Scream

Similar to other decentralized lending protocols like Compound, Cream, and Aave is Scream. Staking SCREAM tokens can yield returns of up to 58% APR for users. There is a potential return of 82% APR for those willing to provide money.

Funding from Geist

Geist is a non-custodial, decentralized protocol for the liquidity market. It has a very attractive feature in that half of all protocol fees are redistributed to GEIST stakers. APR for Geist Finance is close to 118% right now.

Tarot

Similar to Geist Finance and Scream, Tarot is a liquidity market protocol. Yield can be earned by liquidity providers by keeping their TAROT tokens in cold storage. You can also trade TAROT for xTAROT at a 21% annual percentage rate (APR).

Read More: Ethereum Founder Sends $500K To A Major Exchange

Conclusion

Fantom staking is a great way to get a return on your FTM tokens. Fantom's APY is higher than that of some of its L1 competitors, thus investors who believe in the cryptocurrency may consider making a bet on it. While the APY is tempting, staking is not without its hazards, since both FTM and the majority of ecosystem tokens have had drawdowns of over 90% during the current weak market. It may be tough to get your money out of a position if you have to stake and lock up your tokens. Read the CoinMarketCap overview of the Fantom community to find out more.