A layer 1 blockchain called Fantom offers holders the ability to generate passive income with their cryptocurrency holdings. Fantom is unique in that it gives an option in contrast to Ethereum and allows for staking its native coin FTM, which provides an added layer of security and stability for the platform.
Fantom is a well-known, fast-moving blockchain that is known for its speed and low cost of transaction processing. This blockchain is designed to be used as the foundation for a variety of applications. The scaling potential of this blockchain is similar to other blockchains that scale one step ahead of their partners, such as Avalanche (AVAX) and Solana (SOL).
It can be considered an “Ethereum killer” because it could potentially replace Ethereum as the leading blockchain platform. Fantom announced its mainnet launch in 2019, raising over 40 million US dollars in investment. The platform aims to make it easier for users to conduct transactions and access services, and it has attracted a number of major players in the blockchain space.
Fantom has been among the most well-known blockchains since it was created, and it currently ranks tenth by total value locked (TVL). Fantom’s popularity is likely due to its ability to provide a secure and transparent platform for transactions. Fantom’s innovative blockchain platform is highly used by businesses and developers.
It is an open-source platform that is easy to use and is popular with many people and allows for the execution of smart contracts in a quick and efficient manner. Additionally, Fantom’s open-source nature allows for the development of new applications and services on the platform.
Fantom’s architecture is scalable and compatible with Ethereum DApps, meaning you can run and deploy your applications on Fantom with ease. Fantom provides a platform for supporting decentralized finance, including the management of DApps and digital assets. This is in addition to the support for traditional financial instruments and services.
The consensus mechanism of Fantom is an innovative proof-of-stake protocol that is based on the Lachesis algorithm. Lachesis is designed to provide a more resilient and efficient consensus mechanism than proof-of-stake, while still being able to achieve high transaction throughput.
Lachesis uses a voting process to reach a decision. Rather than relying on a majority vote, Lachesis uses a voting process that takes into account the number of votes each participant has cast. This way, the algorithm ensures that everyone has a say in the outcome of a vote.
It is designed to be more efficient and less resource-intensive than other consensus mechanisms and it completes transactions quickly mainly because of the aBFT algorithm. With aBFT, you can create networks of nodes all over the world, without needing to ask anyone for permission. This makes it a highly decentralized system, perfect for use in a wide variety of settings.
With Fantom’s powerful FTM token, you can generate passive revenue with your investment. By staking Fantom, you’re helping the Fantom blockchain grow and become more secure.
Fantom staking: what is it?
Staking is a security measure used on blockchains that locks up the digital assets of investors for a certain timeframe. This makes it difficult for anyone to hack or steal the investment and makes the blockchain more reliable in the long run.
These security measures in place are enforced by those who hold tokens as part of their stake in the protocol. This ensures that transactions are carried out in a responsible manner and that everyone adheres to the rules.
By investing in FTM, you are actively supporting its connected network and generating passive income. Token staking means that holders will have to keep their tokens locked up for a while, but they can access them at any time.
How can you stake FTM?
Running a validator is a costly and time-consuming endeavor, but it’s important to protect the consensus mechanism from Sybil attacks. To do this, a minimum stake of 500,000 FTM is required. Sybil attacks are a type of attack that exploit the vulnerabilities of a number of identities inside a network.
These attacks can be very harmful to the security of a system and can be prevented by using strong authentication and security measures. As the validation requirements for a given task are high, it usually gets easy to outsource the task to a validator. There are various strategies for staking Fantom that can be employed.
- Fluid staking
Fluid staking is a way to secure your tokens by locking them in a contract and allowing only those who have approved access to withdraw them. FTM tokens of investors can be locked up for a period of as little as two weeks, up to one year. This will furnish them with potential returns for their staked amount of tokens.
The reward for FTMs that are staked for a certain timeframe will vary depending on how long the period of staking is. Staking periods with longer time periods are rewarded at a higher rate.
- Liquid staking
Liquid staking is a way of investing in cryptocurrency that allows you to stake your coins without having to sell them. The process of staking liquid assets is a way to protect your investment and earn rewards.
Investors can get an improved return on their staked funds by minting sFTM. This is due to the coins being liquid, meaning they can be quickly transferred between investors and it allows them to keep their funds liquid and available for investment, which can improve their overall return.
- Custodial staking
Custodial staking is a method of investing in cryptocurrencies that allows users to keep their holdings without having to worry about them being lost or stolen. With FTM, investors have the option to trade on a centralized exchange such as Coinbase and Binance. This makes trading FTM easy and convenient for everyone. The reward for staking can be 1 percent.
If you’re ready to stake Fantom, you need to start by first acquiring at least 1 Fantom (FTM). Staking is simple and can be done on the Fantom staking page. Simply follow the steps outlined there and you’ll be ready to make some powerful investments.
You need to log in from a wallet that is compatible with a chosen exchange such as Metamask. Your wallet can be accessed from anywhere either from your mobile phone or computer. A completely new wallet can be created or the one that already exists can be utilized. Depositing your FTM tokens will require you to transfer them from another wallet or centralized exchange to your Opera wallet address for Fantom.
Once you are done doing the above-mentioned steps, click on the option of staking. To make this transaction go smoothly, you would need to select a validator and a specific amount to delegate. After that, choose a timeframe that you want to stake your FTM for and make a confirmation.
There are several Fantom wallet options available, each with its own benefits. The Opera network by Fantom is a unique blockchain that is compatible with wallets of Ethereum.
This means that you are able to utilize any wallet that goes with Ethereum, such as the Coinbase Wallet, the MetaMask wallet, or Ledger which is a cold wallet. Signing up for Fantom is easy – you can even download your created Fantom wallet right away.
Where can you stake your FTM tokens?
Fantom offers an elegant and persuasive platform for staking your FTM tokens across a number of different platforms, including custodial blockchains and decentralized exchanges. We will explore all the potential Fantom staking options to help you choose the best one.
Staking Fantom on Ledger
Staking via hardware wallets such as Ledger relies on smart contracts to interact with the blockchain. This smart contract is used to manage the staking interest on the wallet, and to distribute rewards to the holders of the wallets once a predefined number of blocks have been mined.
This contract is used to verify the transactions that take place on the blockchain, and as a result, is responsible for securing your cryptocurrency holdings. To stake Fantom, you need to sign up for the ledger nano S app by Fantom FTM. To stake Fantom, go to your account’s “Stake” menu and select FTM to stake.
Staking Fantom on Coinbase
This means that users will be able to easily access and use Fantom’s powerful capabilities. In 2021, Fantom made an announcement that it is now compatible with the Coinbase Wallet. This makes it easy for users to access and use Fantom’s powerful services and access network to make transactions and access the Fantom blockchain.
Fantom is a great resource for Coinbase Wallet users, who can access and utilize the network of Fantom which offers a powerful ecosystem of DApps. You can connect your Coinbase Wallet to your Fantom to carry out your Fantom activities and generate rewards.
Staking Fantom on Binance
By staking FTM tokens on Binance, you can get a great return on your investment. You can deposit a reasonable amount of tokens on the Binance exchange, then choose the product that best suits your needs- typically a secured time of one month, 2 months, or 4 months. You are able to choose to stake your FTM tokens for a longer timeframe in order to receive improved returns of nearly 14 percent.
Staking Fantom on Kucoin
To use Kucoin’s FTM token trading feature, you first need to make a deposit of your FTM tokens on the exchange of Kucoin. After that, go through the option of Kucoin Earn and start trading. You can choose between a variety of investment products that offer different rewards and time periods for locking in your digital assets. Simply subscribe to the product that best suits your needs and you’re set.
Can FTM be staked safely?
FTM staking is secure since the validator node can not get to your FTM tokens. You should keep your private key and seed phrase safe to ensure your stake is protected. Additionally, the FTM validator node is run by a team of experienced individuals who are committed to protecting your tokens.
Fantom relies on a validator network that is carefully monitored and has a history of behaving responsibly. On the off chance that a validator isn’t trustworthy, you might lose a little percentage of your staked assets. To ensure the reliability of validators of Fantom, it is advisable to select those that have websites, strong community ties, and Twitter handles.
How other tokens can be staked on the platform of Fantom?
With Fantom, you can generate an income passively from your investments in DeFi tokens by staking them in the Fantom ecosystem. This allows you to take advantage of the growth potential of these tokens while avoiding the risk of investing in a single token. To stake native tokens of a system, you are required to have a MetaMask or other Fantom-compatible wallet connected to the network.
By turning into a marketplace for non-native digital currencies, Fantom is helping to solidify the cryptocurrency market and make it more accessible to everyone. These tokens are perfect for investors who want to make a secure investment, and they offer a high return on investment. There are a variety of tokens available that you can easily stake on Fantom and earn rewards.
- Spookyswap is the most popular digital asset exchange on Fantom, with a 777 million USD market capitalization and a native token called BOO. By bonding FTM with Spookyswap, you can get the most liquidity and highest yields from your investments.
Staking BOO requires you to purchase the tokens on an exchange or you can even trade them in Spookyswap. You will need to connect the Fantom Opera network with your chosen wallet to check out your position and then begin earning.
- BeethovenX is a cutting-edge decentralized exchange that is operated by a community of passionate traders. BeethovenX being a powerhouse for DeFi and an automated market maker (AMM), provides liquidity for traders throughout the DEX. provides a platform for innovative financial products and is well-positioned to become a leading player in this growing market.
BeethovenX is governed by a native token called BEETS and operates on the Optimism chain and the network of Fantom Opera, which generates an annual percentage rate of 31%. This makes BeethovenX an attractive investment option. For staking Beets, you’ll need to deposit some Fantom tokens first.
After that, make a connection of Fantom Opera to your wallet and follow the process to make the selection of a validator and the time you want to lock your tokens for.
- QiDao is an independent, community-administrated protocol on Fantom that permits you to acquire interest-free stablecoins on your digital assets utilized as loans. This makes it a valuable tool for protecting your investments and making sure you always have access to a stable value.
Loans are paid back and redeemed in miTokens (software pegging of the stablecoin to the US dollar), ensuring that your investment is always safe.
- Scream is a secure and reliable platform that is supported by Fantom, so you can be sure your money will be safe and your borrowing experience will be smooth. With Scream, you can tap into a wide range of financing options without having to deal with the hassle of centralized lenders and you can get instant loans from other borrowers just like you without needing a middleman.
By staking the SCREAM tokens, users are able to get an annual percentage rate of 58%, and for the providers of liquidity, this is even greater at around 82%.
How can you run a Fantom node?
Validators play an important role in Fantom as the nodes are run by them, ensuring the network remains reliable and secure. To run a complete node implies that validators are part of the consensus to help secure the network and produce new blocks. A full node of Fantom requires some technical expertise and some specific hardware, so it might not be for everyone.
If you want to run a full node of Fantom, you will need to meet a few requirements. First of all, a minimum deposit of 500,000 FTM is required. Then the recommended validation size is at least 15 times the amount of self-stake. You don’t need to invest in a high-end AWS instance if you don’t have the resources. You can use an AWS m5.xlarge instance having 4 vCPUs and 4.5 TB of storage to run the node.
With current rates, you can earn an impressive APY of 13% on your deposits, plus an extra 15% from those who choose to delegate their rewards. Your APY will vary depending on how much you stake. To find the latest APY, we recommend visiting the website of the Fantom Foundation.
The staking of Fantom (FTM) implies that investors are actively supporting its network as well as generating income passively. This means the investors are guaranteed a return on their investment as they are helping to grow the FTM community.