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The “Truth” behind the high yield of the market
Pionex Staking has chosen to release in mid-June 2022. At the same time, many institutions in the cryptocurrency market are facing a serious liquidity crisis, including a centralized investment platform and a large hedge fund. While Pionex pays more attention to investment risks, a series of recent events has also given us the incentive to create low-risk, fixed-income products.
“Amazing 20% return (high-yield)“, “Automatically high returns“…, with the development of smart contracts, financial product advertisements only need to advertise high returns to attract the attention of countless investors. Is it a carnival or a trap behind the eye-catching annualized income?
Users can often see the APY data of each product on the web page, but it is difficult to clearly understand what or how much risk the platform will take. Some institutions apply Staking financing to off-chain investment. In this way, even if Staking users know the investment target, or even see the financial report of the investment target, they cannot judge the risk at all. In the event of bankruptcy and fraud, users need to hire lawyers in transnational courts, making it extremely difficult to defend their rights. A DeFi featured product that cannot operate completely transparently and only relies on the reputation of the platform for financing goes against the purpose of DeFi itself.
Pionex Real Staking——Truly Trustworthy Staking
The Pionex ETH Staking program invests assets in the Lido/Curve platform with complete transparency without using any leverage. It is the simplest investment of Pionex: Staking ETH and earning income. Users do not need to consider and measure complex income formulas or parameters, and only need to go through [Earn] -> [Staking] to complete the Curve investment on the chain. In order to clearly display what Staking is, Pionex Staking is completely the same as the following operations:
Reference： A Guide To Curve Finance | Lido: Help
Logged in to curve.fi/stETH and connected wallets
Depositing ETH to add liquidity
Account gets corresponding LP Tokens
Automatically deposit to Gauge & earn interest
Unlike the Aave leverage system, Pionex ETH Staking does not use any leverage. At the same time, ETH Staking fully invests the assets in the smart contracts of the decentralized blockchain
Users can not only view the status of the liquidity pool and the floating rate of return on https://curve.fi/steth in real-time, but also fully understand and verify the operation process on Lido. You also don’t need to bear any leverage and worry about funds being invested offline. Users only need to click on Staking to avoid complicated operations, such as opening accounts and interacting with smart contracts. In addition, it also reduces the risk to users, such as hacking, malicious fraud, etc. Pionex’s professional investment and research team monitors the market in real-time and selects the optimal smart contract combination, saving you a lot of research time and providing users with a “one-stop solution” for staking.
Besides, in order to give users more investment decision-making power, we provide users with the right to suspend and terminate the Staking service at any time. You can redeem your staking assets at any time. Our Telegram community is open to users. You are welcome to ask questions with us here, and we will answer in the group.
How to Stake?
To get started, simply follow the tutorials on the Pionex Stake strategy and stake your assets.
In APP：
Step 1: Open the Pionex app and click on [Earn] - [Staking] to access the staking section. Choose the product you wish to invest in, and click the [Stake] button.
Step 2: Enter the investment amount, then read and agree to the “Pionex Staking Service Agreement” by checking the checkbox, then click [Stake] - [Confirm] to successfully stake your assets.
On the Web：
Step 1: Log in to your Pionex account, click on [Earn] in the upper menu bar, and then select [Staking].
Step 2: Choose the product you wish to invest in, and click the [Stake] button. Enter the investment amount, then read and agree to the “Pionex Staking Service Agreement” by checking the checkbox, then click [Stake] to successfully stake your assets.
Staking FAQ
Q： How to redeem your invested assets?
A： Click on the [Redeem] button, choose the order you wish to redeem, and then click [Redeem] again to complete the process.
Q： What happens when redeeming staking assets?
A： For flexible products (no lock-up period):
You can redeem your assets at any time, and there are no fees charged for redeeming your principal.
For products with a lock-up period:
After your initial order has expired, the staking investment will continue to earn APR in the form of demand savings.
When you redeem after the expiration date, Pionex does not charge any transaction fees.
If you choose to redeem before the due date (i.e., early redemption), a fee of 50% of the accrued rewards or a minimum of 0.005 ETH (whichever is greater at the time of redemption) will be charged.
Once successfully redeemed, the assets will be distributed to your primary account.
Q： How are the rewards distributed?
A： Rewards are distributed hourly. You can view your accumulated rewards and hourly distribution records on the “Rewards” page.
Q： Can I release the rewards without redeeming the principal amount?
A： Yes, you can. Go to the “Rewards” tab and click the [Release Rewards] button to release your rewards.
Q： Does ETH encounter a risk like UST?
A： No. The risk of UST comes from the flaws in the design of the algorithmic stablecoin itself, which is an endogenous risk. The current volatility of ETH prices comes from the lack of liquidity. And stETH to ETH2.0 is a rigid redemption, and it is trustworthy from the Coin standard.
Q： How is the estimated profit calculated?
A： Estimated Profit = Total Staking Asset Value × APR × Duration × (1/365)
Example:
Suppose you stake ETH for 180 days at an APR of 4.25%.
If your total investment is n ETH, the estimated profit is:
Estimated Profit = n × 0.0425 × 180 × (1/365)
Q： How to enable or disable Auto-Staking, and how does it work?
A： To manage Auto-Staking: Click on the [Auto-Staking] button in the upper-right corner. This will open the Auto-Staking settings window. For the products you want to apply Auto-Staking to, toggle the switch to the right to enable it.
How it works: When Auto-Staking is enabled, your principal will be automatically re-invested into the same product at maturity, based on the latest interest rate available at that time.
To disable Auto-Staking, simply toggle the switch to the left. When the product reaches its maturity period, both your principal and earned rewards will be transferred to your Primary Account instead of being re-staked.
Please get in touch with Pionex Support if you have any other questions.