1inch Network

As the number of 1inch resolvers increases, 1inch users get more opportunities for collecting rewards from resolvers for delegating them Unicorn Power, received for staking 1INCH tokens.Last December, the <a href="https://1inch.io/" rel="noopener noreferrer nofollow">1inch Network</a> implemented the <a href="https://blog.1inch.io/the-1inch-network-releases-a-major-upgrade-fusion-96184d8141d3" rel="noopener noreferrer nofollow">Fusion</a> upgrade, introducing Unicorn Power in a bid to make 1INCH staking yet more attractive to users. Three months on, thousands of 1inch users have benefited from staking 1INCH tokens and delegating the received Unicorn Power to resolvers.Staking involves locking crypto in a smart contract. With 1inch, users can stake 1INCH tokens and receive equivalent Unicorn Power. Rewards come to stakers from delegating Unicorn Power to resolvers who, in turn, make profits from arbitrage trading.<h3 id="strong-stake-1inch-to-receive-unicorn-power-strong">Stake 1INCH to receive Unicorn Power</h3>Stake 1INCH - the 1inch Network’s utility and governance token - and get Unicorn Power. Staking is available via <a href="https://app.1inch.io/" rel="noopener noreferrer nofollow">the 1inch dApp</a> and through the Web3 browser in the mobile app.Go to the DAO → Staking tab and choose a lock period from one month to two years, with the latter set by default. The longer the lock period, the more Unicorn Power you receive. You can always increase the size of your stake and the lock period, but reducing the stake or lock period isn’t possible. During the lock time, you won’t be able to move your staked crypto assets, but, if necessary, the funds can be unstaked before the lock period expires. The only condition is the payment of a penalty, which is calculated on the basis of the remaining time until unlocking and decreases as the expiration of the lock period approaches.Note that if the penalty size is more than 90% of the staked amount, the unstaking won&#39;t be possible.1INCH staking is performed in 3 clicks: choose the number of 1INCH tokens and the lock period, sign the transaction in your wallet and click Stake.<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/059d7ba77ad54fb68cfcd03f2666594a.png" />The staking field displays the amount of 1INCH tokens being staked and corresponding Unicorn Power that can be used to earn rewards after delegating it to resolvers. st1INCH are minted as proof of staking and are subsequently used for calculating the staker’s Unicorn Power or voting purposes at the 1inch Network Governance Shapshot.<h3 id="strong-resolvers-distributions-and-apr-strong">Resolvers, distributions and APR</h3>Resolvers fill orders - Fusion mode swaps - and take advantage of arbitrage opportunities, trying to win a tiny number of tokens against the current market price with each Fusion swap. Thus, a properly optimized resolving algorithm can generate a positive delta for resolvers. Each resolver is basically a fully automated trading algorithm set up by a professional market maker. Resolvers are motivated to distribute rewards among delegators since they are interested in attracting more of them to get more Unicorn Power and increase their network share.On a regular basis, resolvers run a distribution of rewards, the timeframe of which is displayed in <a href="https://app.1inch.io/#/1/earn/delegate" rel="noopener noreferrer nofollow">resolvers’ profiles</a>. The total distribution amount, as well as the period it lasts, is determined by the resolver. Rewards are distributed in small portions with every new block and are split among the delegators according to their Unicorn Power.Each resolver announces an APR, which refers to an estimated amount that approximates the annual yield based on the basis of previous rewards distributions. The total amount of distribution and the number of delegators are taken into account for calculation. A resolver’s APR decreases as more users delegate their Unicorn Power.<h3 id="strong-choose-a-resolver-to-delegate-unicorn-power-to-and-enjoy-rewards-strong">Choose a resolver to delegate Unicorn Power to and enjoy rewards</h3>Your Unicorn Power decreases with every day elapsed after staking. Hence, use it right away.Go to Earn → Delegate: You will see the existing resolvers and information about them. Each resolver’s profile shows the total amount of rewards distributed to users who delegated them Unicorn Power. Once a user has delegated their Unicorn Power to a specific resolver, they begin seeing their total rewards from that resolver. Another important parameter is the resolver’s share in the network. All resolvers are screened by TRM Labs to ensure their addresses are not associated with any illegal activity. Resolvers pass through the KYC/KYB procedure performed by Synaps, which is indicated with a verification checkmark in their profile.Select a resolver and click Delegate: You can only delegate your Unicorn Power to one resolver at once, and your rewards start to accrue from the moment you select one. A user can claim their rewards at any time and stake the received 1INCH to obtain more Unicorn Power, which can again be delegated to a resolver.In addition to rewards, stakers regularly receive various privileges and bonuses. For instance, this March, stakers were offered a whole <a href="https://blog.1inch.io/march-benefits-for-1inch-stakers-831ccf3308c5" rel="noopener noreferrer nofollow">range of benefits</a> and promotions.It’s worth noting that Unicorn Power’s main feature is to enable 1INCH stakers to participate in the 1inch DAO governance process, having an impact on the development of the 1inch Network.The process of staking 1INCH, delegating Unicorn Power and receiving rewards with 1inch is easy. But if you need more guidance, check out this <a href="https://help.1inch.io/en/articles/6909554-how-to-earn-rewards-by-staking-1inch-tokens-and-delegating-unicorn-power" rel="noopener noreferrer nofollow">help center article</a>.And stay tuned for more articles explaining 1inch features!

Staking 1INCH and delegating Unicorn Power: a source of rewards

Table of Contents

1inch Network

Autres articles publiés le 23 mars 2023

OVER at the WSJ Tech Live with an Exclusive AR Experience

Virtual Worlds Soar: Record Land Sales Generate $311M

NuriFlex Group to Introduce AI-embedded chat GPT on NuriTopia Metaverse Platform

Radix Closes Successful $10M Private Funding Round Led by DWF Labs

Coinbase Faces Potential SEC Enforcement Action After Receiving Wells Notice

Tron’s Justin Sun Blasts SEC in Latest Crypto Crackdown

Join our free newsletter for daily crypto updates!