💹Staking
What is staking?
Staking is the act of depositing 25M EXO to activate a staking contract. As a staking validator you’ll be responsible for the bridge. This will keep Exohood secure for everyone and earn you new EXO in the process. This process, known as multichain-proof-of-stake (MuPoS), is being introduced by the Exohood Multichain Consesus.
Earn rewards
Rewards are given for actions that help the network reach consensus. You'll get rewards for participating to properly stake and check the work of other validators because that's what keeps the bridge running securely.
Better security
The network gets stronger against attacks as more EXO is staked, as it then requires more EXO to control a majority of the bridge. To become a threat, you would need to hold the majority of validators, which means you'd need to control the majority of EXO in the system.
More sustainable
Exohood's protocol doesn't need energy-intensive computers to participate in a multichain-proof-of-stake platform just a home computer or smartphone. This will make Exohood better for the environment.
Staking Options
1. True-self Staking
To participate in the validator process you don't need hardware, the computer power has as delegate to third party servers for the challenging part while you earn EXO rewards.
Maximum rewards - receive full rewards directly from the protocol.
Your EXO is at stake for long terms.
Deposit 25M EXO. And remember dont lose your private keys. The rest is taken care of, though specific services will vary.
You'll get rewards for new chains or checking the work of other validators to keep the bridge running securely.
If you lose your wallet access or your secret keys, you can change the wallet address to receive your stake back.
Your wallet address will be tagged in the blockchain as a validator.
Malicious behavior can result in 'slashing' of larger amounts of EXO and forced ejection from the validator program.
2. Pooled Staking
Several pooling solutions now exist to assist users who doesn't have 25M EXO.
This option included is known as 'liquid staking' which involves an ERC20 liquidity token that represents your staked EXO.
Liquid staking enables easy and anytime exiting and makes staking as simple as a token swap. This option also allows users to hold custody of their assets in their own wallet.
Pooled staking isn't native to the Exohood Platform. Third parties are building these solutions, and they carry their own risks.
Pooled stakers accrue rewards differently, depending on which method of pooled staking is chosen.
Risks vary depending on the method used.
Lowest EXO requirements, some projects require as little as 1 EXO.
Many pooled staking services offer one or more liquidity tokens that represents your staked EXO plus your share of the validator rewards.
In general, risks consist of a combination of counter-party, smart contract and execution risk.
Deposit directly from your wallet to different pooled staking platforms or simply trade for one of the staking liquidity tokens.
Liquidity tokens can be held in your own wallet, used in DeFi and sold if you decide to exit.
3. Centralized Exchange
The centralized exchanges provides staking services if you aren't yet comfortable holding EXO in your own wallet. They can be a fallback to allow you to earn some yield on your EXO holdings with minimal oversight or effort.
The trade-off here is that centralized providers consolidate large pools of EXO to run large numbers of validators. This can be dangerous for the network and its users as it creates a large centralized target and point of failure, making the network more vulnerable to attack or bugs.
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