Avalanche has built an unshakable fortress in the DeFi universe with lightning-fast performance and minimal transaction costs, while constantly pushing the boundaries of its ecosystem with innovative projects such as Ethena,PENDLE and PayPal USD. This constant dynamism and growth wind brings opportunities for AVAX asset owners to earn returns on global trusted platforms like Binance.
For you, dear #BinanceSquareTalks Family, let's discuss the most robust and effective ways to effortlessly convert your $AVAX holdings into passive income.
AVAX Return Strategy: Balancing Stability and Flexibility
There are multiple options to utilize your AVAX tokens. But we'll talk about the most risk-free and secure option, staking earnings...
First, let's look at the staking options on the Binance Earn platform. Please note that you must have completed the KYC process in order to benefit from the staking options...
Binance Simple Earn
Flexible
Locked (7-14-30-60-90-120 days)
Before going into the details of both types of products, it is necessary to clarify a vital point regarding the rates of return (APR - Annual Percentage Rate). Although the APR offered especially for ‘Locked Products’ may seem higher and more attractive, it should be noted that this rate is called "Fixed Rate". unless explicitly stated as such, it may change on a daily basis during the lock-in period. This means that an APR that looks attractive at the time of lock-in may not deliver the total return you expect at maturity, and this possibility should be at the heart of your investment decision. This variability depends on market conditions and other factors.
Flexible Products: As the name suggests, with flexible products, you have the flexibility to generate returns at any time without having to lock in your assets...
Who is it suitable for?
People who want to have access to crypto assets at any time,
People who want to retain the option to trade quickly in response to volatile market conditions,
People who want to generate passive income for immediate use in case of any urgent need...
Key Features:
You can start or end your subscription at any time.
APR is real-time and updated every minute. Therefore, the interest rate is not fixed.
Bonus Tiered APR applies for some asset classes.
The assets you use in this option are used because they are used to provide liquidity for Binance's products such as Credit and Margin. The interest income from these products is also reflected in the APR rates.
Your rewards appear in your Earnings wallet.
The minimum initial amount for AVAX is 0.1 AVAX for today.
You can withdraw your assets instantly, except in cases of extreme market volatility or when a large number of users request withdrawals at the same time.
All detail: Official Source Link: Get Started with Binance Simple Earn Flexible Products
Locked: This is a staking option where you lock your assets for a specific maturity and earn a relatively higher income than the Flexible maturity option.
Who is it suitable for?
Users who do not plan to move their assets for a certain period of time,
People who want to hodl long-term without being affected by short-term market fluctuations,
It is an attractive option for people who want to earn higher income compared to flexible products...
Key Features:
You can lock your assets for 7-14-30-60-90-120 days at any maturity.
Returns start one day after you start trading (as of 00:00 UTC).
Unless “Fixed Rate” is stated on the product page, the APR rate may change daily until the maturity date.
You can withdraw your assets before maturity. However, the sum of all your income will be deducted from your principal.
Once your early withdrawal request is approved, your assets are usually returned to the Spot wallet within 72 hours.
Each locked product has a certain participation quota. Once this quota is reached, no new participations will be accepted.
Official Source Link: Get Started with Binance Simple Earn Locked Products
NOTE: If you continue with both products by selecting the automatic enrollment option, be sure to check the details on the relevant page in which cases the maturity will be renewed and to which wallet your proceeds will be transferred. If you encounter any problems, it may be a sensible move to take a ss as proof.
Official Source Link: What Is Auto-Subscribe?
So, which one would be more logical for me to invest my AVAXs in?
Actually, I have written down who both options above may be suitable for and what you should pay attention to. You can choose whichever conditions you meet or which strategy you plan to act with.
For example, I am both a CEX and DEX user, so I stake my AVAXs separately in both Binance flexible term and Web3 wallets by delegation. There are two reasons for me to act this way...
I keep some of it locked in Binance Earn for the flexible term to move faster on a possible upward momentum, and in delegation to avoid panic selling on sudden market declines by getting scared and moving with the herd.
But if you know how to use a Web3 wallet and want to utilize your AVAXs in the medium and long term with a higher APR, you can also choose to delegate to nodes with high uptime rates on the Avalanche Network. I use Core Wallet, Avalanche's native wallet, for this.
In the coming days, I will publish a new article on Core Wallet setup and how to delegate to AVAX, so you can follow the details there if you want.
In the meantime, please keep in mind that everyone is responsible for their own choices, and you should determine your own strategy based on your own circumstances. Thanks to DAO Labs #SocialMining , I have learned very clearly how to survive even in adverse market conditions and especially what to pay attention to. Therefore, I take my steps in accordance with all kinds of conditions. You can also determine a direction for yourself by evaluating all conditions.
I hope this information has been useful for everyone.Stay SAFU ...