June 19, 2024

Stacking STX + Chasing Rewards: The solution to counter STX inflation

If you are not using Liquid Stacking protocols, you are likely losing the battle against token inflation.

How can users avoid it?

By earning yield on STX consistently and chasing potential airdrops /rewards within the Stacks DeFi ecosystem.

Discover how to counter inflation and maximize your returns within the Stacks ecosystem.

STX Inflation

Currently, the STX inflation rate is approximately 3.6%.

Next year, the first Stacks halving will occur, reducing the annual inflation rate to 1.8%.

STX token release schedule by Messari

In any case, the STX holders are effectively losing purchasing power by not stacking. They would need to generate an APY that matches the inflation rate to break even.

Native Stacking STX

The inflation rate can be countered by staking STX with community pools or by yourself and obtaining an APY of 6% or more (based on historic Stacking data).

Moreover, users help secure and decentralize the network through Stacking.

But what are the issues with Native Staking?

  • STX is locked for 2 weeks cycles
  • Users can not interact with dApps if they’re native stacking STX

Liquid Staking with Stacking DAO

Liquid Staking protocols like Stacking DAO enable users to avoid STX lock times and participate in DeFi, all while still helping secure the network and enjoy Stacking rewards.

Through Stacking DAO, users can make up to 9% APY on their STX (based on Cycle 84 returns).

Plus, users can pursue potential airdrops and rewards by depositing stSTX and accumulating points across various DeFi protocols.

There are various Points programs live within the Stacks ecosystem:

  • Stacking DAO
  • Zest Protocol
  • Bitflow Finance
  • Hermetica

How to Start?

  • Visit Stacking DAO
  • Deposit your STX to mint stSTX and start accumulating Stacking rewards and Stacking DAO points
  • Deposit stSTX across DeFi to earn DeFi protocol points and yield on top of Stacking DAO rewards

It doesn’t get simpler than this.

Stacking DAO Details:

Mint stSTX today and earn up to 10% yield on your STX: https://app.stackingdao.com/

Follow us on Twitter to always be up to date on Stacking DAO: https://twitter.com/StackingDao

For any questions or support, join our Telegram community: https://t.me/+0jPjegAOoMwyNTU0

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