xDAI Stake Coin Price & Market Data
xDAI Stake price today is $10.17 with a 24-hour trading volume of $658,163. STAKE price is down -2.4% in the last 24 hours. It has a circulating supply of 6.9 Million STAKE coins and a total supply of 8.65 Million. If you are looking to buy or sell xDAI Stake, Uniswap (v2) is currently the most active exchange.
What is xDAI STAKE?
xDAI STAKE (STAKE) is one of the two native tokens for the xDAI Chain. It is used for validators to stake into the xDAI chain, validate the transactions, and secure the chain. The other native token for the xDAI Chain is xDAI.
What is the xDAI Chain?
xDAI is a Layer 2 scaling solution and is compatible with Ethereum. It is designed to be more efficient than Ethereum, with higher transaction throughput (70 transactions/second) and has a much lower transaction fee.
On the xDAI chain, they are two native tokens:
xDAI is created 1:1 with Ethereum’s DAI token and bridged to the xDAI Chain. xDAI is a stablecoin that aims to have a $1 price peg and is primarily used as a transaction payment token. The benefit of using xDAI on the xDAI Chain instead of DAI on Ethereum is that transaction fee are significantly lower.
xDAI STAKE (STAKE)
STAKE is a separate token from xDAI, and unlike xDAI, its value is market-driven.
STAKE has two primary purposes on the xDAI chain:
Staking - Validators require STAKE tokens to stake on the xDAI Chain protocol. They validate xDAI Chain transactions and produce blocks accordingly. For their efforts, validators will receive additional STAKE tokens as rewards.
If they do not validate honestly, validators will be banned from the protocol for 90 days. Their staked tokens will be locked, and they cannot withdraw their tokens. For more information on how to become a validator, you can refer here.
STAKE token holders can stake or delegate their tokens to validators of their choice to run the nodes. Stakers will earn a reward in return.
Governance - STAKE token holders can create and vote on governance proposals that will affect the direction of the xDAI protocol.
A brief history of xDAI STAKE
Proof of Authority’s tech lead, Igor Barinov, first came out with the idea for xDAI Chain in 2018 and the chain went live the same year.
What is POSDAO?
POSDAO is a Proof-of-Stake (PoS) algorithm implemented as a Decentralized Autonomous Organization (DAO). A group of validators is chosen to participate in consensus. Each staking epoch lasts for one week.
All validators will receive the same block reward if they are included in the validators group during that staking epoch.
The validators group is selected based on the number of stakes they have in their pool. The higher they have, the more likely they are to get selected. This selection process is similar to Delegated Proof of Stake (DPoS). However, the selection is not guaranteed with the added element of randomness.
Where can I obtain STAKE?
Alternatively, you may also buy it on Honeswap, a decentralized exchange on the xDAI chain.
Kindly note that STAKE on Ethereum is an ERC-20 token. STAKE on the xDAI chain is not an ERC-20 token and thus will have a different contract address.
How can I stake my STAKE token?
You can stake your STAKE tokens on either the Ethereum or xDai chain.
Staking STAKE token on Ethereum
You can easily stake your STAKE token via a dApp tool called EasyStaking. There is no minimum required amount of STAKE to participate. The duration of your staking and the total supply of STAKE will determine your staking rewards.
The rewards earned are only up to 15% APR and shared between the stakers on EasyStaking and the liquidity providers who provide liquidity to Uniswap.
Staking STAKE token on xDAI Chain
You can either run a node as a validator or delegate your tokens to other validators. You will need a minimum of 20,000 STAKE to validate or 200 STAKE to delegate. Similar to staking on the Ethereum chain, you can earn up to 15% APR.
However, the rewards may be less if the delegation share reaches more than 70% of a validating node.
Who is using xDai today?
Honey, a Uniswap equivalent port on xDai is facilitating swaps at lower transaction costs. Tokens are re-issued on the xDai chain allowing high-speed swaps. Other than that, another NFT related project called Proof of Attendance Protocol (POAP) is using xDai. They primarily use it to keep NFT minting and transaction costs low before bringing them to the main Etheruem chain. You can find more projects integrating it on the list of projects.