{"id":945495,"date":"2021-07-19T12:26:16","date_gmt":"2021-07-19T02:26:16","guid":{"rendered":"https:\/\/www.finder.com\/ca\/?p=945495"},"modified":"2022-09-09T16:53:34","modified_gmt":"2022-09-09T20:53:34","slug":"how-to-stake-chainlink","status":"publish","type":"post","link":"https:\/\/www.finder.com\/ca\/cryptocurrency\/earn\/how-to-stake-chainlink","title":{"rendered":"How to stake Chainlink (LINK)\n<\/a>"},"content":{"rendered":"

Chainlink is a decentralised network of \"oracles\" that aims to connect on-blockchain smart contracts with off-blockchain real-world data. Each oracle delivers live data feeds that can be connected to any decentralised application (dApp). Unlike a single oracle, the implementation of oracles in a network ensures data feeds remain decentralised, which eliminates any questions around reliability.<\/p>\n\n

The most common use of Chainlink is in DeFi lending and borrowing markets, like Aave<\/a>, or synthetic exchanges, like Synthetix<\/a>. These platforms need to determine the very latest market information so they can price services correctly. Although primarily used in DeFi, there are countless applications for this data bridge, such as pulling aircraft flight data and handing it to insurance companies. This could allow insurers to automate insurance claims.<\/p>\n\n

LINK is the native cryptocurrency of the Chainlink network. The coin serves multiple purposes within the protocol including paying node operators, motivating good actions and providing a reputation gauge for data providers.<\/p>\n\n

In this guide, we will look at the ways LINK tokens can earn passive interest through staking.<\/p>\n\n

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\n Disclaimer:<\/b> This information should not be interpreted as an endorsement of cryptocurrency or any specific\n provider, service or offering. It is not a recommendation to trade.\n <\/div>\n<\/div>\n\n\n\n

What is Chainlink staking?<\/h3>\n

Technically, staking is a term used when referring to a proof-of-stake blockchain<\/a>. Users can stake cryptocurrencies into the blockchain to validate and secure the network. In return they receive rewards. Staking can be a useful way to earn passive interest on cryptocurrency holdings. However, Chainlink is slightly different.<\/p>\n

Node operator<\/h4>\n

Chainlink is a decentralised oracle network. To receive rewards in Chainlink a user must launch a node and begin operating within the network. Node operators retrieve and send data to smart contracts, alongside maintaining the infrastructure that keeps Chainlink functional and running 24\/7. Although LINK tokens are not required to launch a node, the more LINK tokens a node holds, the higher they will rank in the system. In return for work, a node receives more LINK tokens.<\/p>\n\n

Launching a node in the Chainlink network is certainly one option for LINK token holders, but it requires a high degree of technical knowledge and familiarity with the system. Luckily LINK tokens can also earn interest through 2 other methods. These include cryptocurrency exchanges and DeFi\/CeFi lending services.<\/p>\n

Cryptocurrency exchange<\/h4>\n

The second method for staking LINK is via a cryptocurrency exchange. Staking LINK on a cryptocurrency exchange is straightforward and simple; however, the number of exchanges currently offering the service is limited.<\/p>\n\n

The exchange will use the deposited LINK to earn an interest which is then passed back to the user. Exchanges offering this service will have their own guides to help users through the process.<\/p>\n\n

Some staking products offered may require a lockup period. This can often vary between 30, 60 or 90 days. Most centralised cryptocurrency exchanges will also require ID and a verified address to open an account.<\/p>\n

DeFi or CeFi lending<\/h4>\n

The third and final method is to deposit LINK tokens into a DeFi service, like Aave, or deposit them into a CeFi (centralised finance) lending institution, like BlockFi or Nexo. By depositing LINK into one of these platforms a user will receive additional LINK in return.<\/p>\n\n

Depositing LINK on a DeFi platform<\/a> or CeFi lending service is a simple case of transferring LINK to the associated platform. Once the tokens are on the platform interest will start accruing immediately.<\/p>\n\n

DeFi services do not require any KYC (know your customer) documentation, which makes it the fastest method to begin earning interest on LINK. Depending on the country a user is connecting from, CeFi platforms may require some form of identification to set up an account.<\/p>\n\n\n\n

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How to stake LINK<\/h3>\n

Staking on an exchange<\/h4>\n

Most investors will have an exchange that they use to buy and sell cryptocurrency. Coinbase, Kraken or Bitstamp are a few examples. As cryptocurrency exchanges have grown in popularity, the features on them have grown accordingly. Many now offer the opportunity to stake cryptocurrencies in return for rewards. However, not every exchange allows LINK staking, so it is worth shopping around to find the best opportunity.<\/p>\n\n Binance is one of the exchanges that does offer users the opportunity to earn interest on their LINK tokens.\n\n

Both options are quick and easy to go through.<\/p>\n

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  1. Login to Binance or sign up for an account.<\/li>\n
  2. Head over to Binance Earn and scroll down the page to find either Flexible Savings or DeFi Staking.<\/li>\n
  3. Find LINK in the dropdown menu and click on \"Transfer\".<\/li>\n
  4. Add in the amount of LINK you would like to lock up and click \"Transfer confirmed\".<\/li>\n<\/ol>\n

    Users can withdraw LINK from a Flexible Savings product at any time. DeFi staking may require a lockup period. The interest is calculated and distributed into a user's account daily.<\/p>\n\n

    Platforms that offer staking<\/h3>\n
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