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  • Introduction to Stablecoin Staking – CoolWallet

    Introduction to Stablecoin Staking – CoolWallet


    Content

     

    Introduction

    Cryptocurrencies have opened up exciting new ways to grow your wealth, and one of the coolest options out there is stablecoin staking. Think of it as a way to earn passive income without the wild ups and downs of regular cryptocurrencies. In this blog, we’ll break down what stablecoin staking is, how it works, its perks, potential risks, and how you can dive in and start boosting your financial future. 

    Still using CoolWallet just to save your crypto? Earn more with CoolWallet App today!

     

    Introduction to Stablecoin Staking

    How Does Stablecoin Staking Work?

    Stablecoin staking is a way to put your stablecoins to work by locking them up in a blockchain network. Essentially, you lend out your stablecoins (like USDT, USDC, DAI, etc.) to lending platforms. By doing this, you provide liquidity to the platform and earn interest paid by borrowers. In return, you receive rewards, usually in the form of more stablecoins.

    This process not only lets you earn passive income but also helps support the DeFi ecosystem. Since stablecoins are designed to maintain a steady value, staking them is generally a safer option compared to staking more volatile crypto.

     

    Why Stake Stablecoins on CoolWallet?

    • Earn Compounded Passive Income Safely: Benefit from compound growth on your passive income with CoolWallet’s advanced safety features.
    • Full Control of Your Assets: Manage your assets in a non-custodial wallet and stake through decentralized platforms, without the intervention of centralized institutions.
    • Support for Multiple Stablecoins Across Different Chains: CoolWallet supports USDT, USDC, and DAI on Ethereum, BSC, and Polygon, giving you plenty of flexibility and choice.
    • User-Friendly: CoolWallet’s intuitive interface makes it easy for both beginners and experienced users to stake, manage, and retrieve stablecoins, ensuring a hassle-free experience.
    • Lower Volatility: Stablecoins are less prone to the wild price swings seen in other cryptocurrencies, making them a more stable investment.

     

    Risks and Considerations

    • Smart Contract Risks: Staking involves using smart contracts, which can sometimes have bugs or be vulnerable to exploits. It’s important to stake through reputable platforms with audited smart contracts.
    • Regulatory Risks: Cryptocurrency and stablecoin regulations can change, potentially impacting your staking activities and returns.
    • Market Risks and Stablecoin De-pegging: While stablecoins are designed to maintain a stable value, there’s always a risk of de-pegging, where their value deviates from the intended peg due to market conditions or other factors.

     

    Get Started with Stablecoin Staking via CoolWallet

    Click here to read the guide.

     

    Conclusion

    Stablecoin staking offers an exciting way to grow your wealth in the crypto world without the crazy ups and downs of regular cryptocurrencies. By staking stablecoins like USDT, USDC, and DAI, you can earn passive income while enjoying a more stable investment. CoolWallet makes it easy and secure with its user-friendly interface and support for multiple stablecoins on different blockchain networks. Ready to Start? Start boosting your financial future today!

     

    Frequently Asked Questions

    Q1. What are Stablecoins?

    Stablecoins are a type of crypto that keeps its value steady by being tied to a reserve asset, like a traditional currency or another commodity. This stability makes them a great choice for investors who want to avoid the wild price swings of crypto like Bitcoin or Ethereum.

    • Fiat-collateralized Stablecoins: These stablecoins are backed by a reserve of fiat currency, such as USD, held in a bank. Examples include USDT (Tether) and USDC (USD Coin).
    • Crypto-collateralized Stablecoins: Backed by other cryptocurrencies, these stablecoins use mechanisms to maintain their peg. DAI is a prominent example, backed by a mix of cryptocurrencies.
    • Algorithmic Stablecoins: These stablecoins rely on algorithms and smart contracts to control the supply and demand, ensuring price stability without direct backing by a reserve asset.

     

    Q2. Which Stablecoins Can I Stake on CoolWallet?

    You can stake USDC, DAI, and USDT on the Ethereum, Polygon, and BSC networks.

    Q3. How Do I Calculate Earnings?

    Rewards start accumulating as soon as you begin staking and are automatically added to your total staked amount, allowing for compound growth. The Annual Percentage Rate (APR) fluctuates based on supply and demand in the stablecoin lending market on the decentralized finance platform.Rewards start accumulating as soon as you begin staking and are automatically added to your total staked amount, allowing for compound growth. The Annual Percentage Rate (APR) fluctuates based on supply and demand in the stablecoin lending market on the decentralized finance platform.

    Q4. Can I Unstake My Stablecoins Anytime on CoolWallet?

    Yes, you can unstake your stablecoins anytime by initiating the unstaking process through CoolWallet’s interface.

    Q5. What Are the Risks of Stablecoin Staking?

    The main risks include smart contract vulnerabilities and potential interruptions in DeFi platform services. CoolWallet integrates with AAVE, a DeFi platform whose smart contracts have undergone multiple audits and tests to ensure safe operation. Learn more. Learn more



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  • Introduction to Custom EVM Network – CoolWallet

    Introduction to Custom EVM Network – CoolWallet


    Introduction to Custom EVM Network

    Custom Networks let users add new EVM-compatible blockchain networks to their crypto wallets, expanding access beyond official options. This allows exploration of new projects, DeFi, and personal blockchain setups. However, users must be cautious of security risks and potential issues with unreliable RPC endpoints. Custom networks offer flexibility but need careful management for safety and smooth use.

    Click here to learn how to add a Custom Networks to your CoolWallet, expanding access beyond official options now!

    Content

    What Is Custom Network

    Crypto wallets typically support only a limited number of blockchains due to resource constraints. The Custom Network feature allows users to manually add any EVM-compatible chain by entering key information like the network name, chain ID, and RPC URL. This flexibility enables users to interact with a wider range of blockchain networks beyond those officially supported by their wallet.

    What Is an EVM-Compatible Chain

    In simple terms, EVM compatibility means a blockchain can run the same smart contracts as Ethereum. An EVM-compatible chain is a blockchain that works with the Ethereum Virtual Machine, allowing it to execute Ethereum-based smart contracts without needing any changes. These blockchains are built to function like Ethereum, meaning that decentralized applications (dApps) created for Ethereum can easily be deployed on them.

    Click here to learn more about EVM-Compatible Chains.

    What Is the Ethereum Virtual Machine (EVM)

    The Ethereum Virtual Machine (EVM) mentioned above acts as the engine that powers the Ethereum blockchain. It is a global, decentralized computer that executes smart contracts—self-executing programs that automatically follow pre-set conditions. The EVM ensures these contracts run the same way on all nodes, guaranteeing that results are predictable and consistent across the network.

    Why Is Custom Network Important

    Back to the topic, adding custom networks to crypto wallets provides several key benefits:

    • Access to New Blockchain Ecosystems: Users can easily add new, trending EVM-compatible networks to their wallet, exploring new projects, DeFi platforms, and NFTs. This increases the chances of participating in airdrops or early investment opportunities.
    • Support for Unofficial Networks: Users can add networks that their wallet doesn’t officially support yet, granting early access to new and promising blockchains.
    • User-Built Networks: Developers and advanced users can add and test their own blockchain networks, enabling them to manage and interact with custom decentralized applications (dApps) securely.

    In short, custom networks give users the flexibility to explore new opportunities and experiment with innovative blockchain solutions.

    Key Components of a Custom Network

    When adding a custom network, several key components are required to ensure smooth functionality:

    • Network Name: The identifiable name of the custom network, used for recognition within the wallet.
    • Chain ID: A unique identifier that helps differentiate the custom network from other EVM-compatible chains, preventing transaction errors.
    • RPC URL: The Remote Procedure Call (RPC) URL enables communication between the wallet and the blockchain, facilitating transaction processing and data retrieval.
    • Symbol (Native Token Name): Each custom network has its own native token (like ETH on Ethereum), used for transaction fees and gas.
    • Explorer URL: An optional link to a block explorer, where users can track transactions, check balances, and view blockchain activity.

    These elements enable users to add and interact with custom networks in their crypto wallets effectively.

    Why Is Custom Network Important While Choosing a Cold Wallet

    When selecting a cold wallet, like CoolWallet Pro, the ability to add a custom network is crucial for several reasons:

    • Flexibility: Custom network support allows users to store assets from a broader range of blockchains, including newer or less mainstream networks, ensuring they are prepared for future developments.
    • Security: Cold wallets store private keys offline, providing an extra layer of security for assets on custom networks, protecting them from online threats and hacks.
    • Future-Proofing: As blockchain technology evolves, having the option to add custom networks ensures that users can adopt new networks without having to switch wallets.
    • Advanced User Needs: For developers and power users, custom network support allows secure access and interaction with personal or niche blockchain networks while benefiting from the high security of offline storage.

    In summary, choosing a cold wallet with custom network capabilities ensures users can securely manage their assets across a broader range of blockchain networks while staying flexible and future-ready.

    Challenges of Custom Networks

    While adding custom networks offers flexibility, there are also some challenges:

    • Security Risks: Custom networks can introduce security vulnerabilities, especially if they haven’t been thoroughly vetted. It’s crucial to only connect to trusted networks.
    • Malicious Network Providers: Untrusted networks can provide false blockchain data (e.g., incorrect balances or transaction statuses) and may track your online activity. Always verify the legitimacy of a network before adding it to your wallet.
    • Unstable RPC Endpoints: Reliable blockchain access depends on the RPC Endpoint. If it’s unstable, users may experience issues viewing balances or making transactions. In such cases, switching or updating the RPC Endpoint in the wallet settings may be necessary.

    In summary, managing custom networks requires care and attention to ensure security and smooth operation.

    Conclusion

    Custom Networks play an important role in the blockchain ecosystem, providing flexibility and opportunities for users to explore new projects and manage their assets across various blockchains. However, it’s essential to approach custom networks with caution, ensuring that you add only trusted and secure networks while regularly maintaining network settings for reliable performance. By doing so, users can take full advantage of custom networks while safeguarding their assets and privacy.

    Custom Network FAQs

    Q1. What is a custom network?

    The custom networks feature allows you to manually add EVM-compatible chains that are not officially supported by CoolWallet, enabling you to interact with the added networks through CoolWallet.

    Q2. How is a custom network different from an officially supported chain?

    Custom networks do not support crypto swaps or credit card purchases. Additionally, transaction history is limited, showing only records of transactions sent through the CoolWallet App.



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