Interested in earning rewards for supporting a blockchain? No wonder. Cold staking, or sometimes called network staking, is the least risky way to earn extra income on cryptocurrency that you are holding anyway.
Shiba Inu is one of the meme dog coins that hasn’t lost on popularity among crypto traders. Being an Ethereum token, cold staking was not available for Shiba Inu for a long time.
That’s now changed. Ethereum’s blockchain still uses the proof-of-work protocol, but as the network upgrades slowly advance, network staking is becoming available. That’s how staking Shiba Inu opened, allowing you to earn rewards just by committing your tokens to the network.The SHIB for cold staking is available through ETH’s beacon nodes.
This, among several other factors, creates a bottleneck which means that SHIB staking is not yet widely implemented - not on crypto exchanges, not in crypto wallets, not in staking platforms. That, in turn, can make for higher staking yields.
Staking rewards also depend on how much is the blockchain used though, and there is always a lull during bear markets as well as during summers. Still, the current yields for cold staking of SHIB look pretty good.
Staking Shiba Inu on Binance
At the moment, the only mainstream custodial platform that offers staking of Shiba Inu coins is Binance.com.
As of June 2022, Binance offers locked cold staking of Shiba Inu coin at between 10% and 12% APY with locks between 10 and 60 days.
The minimum locked amount is only 200 SHIB, which is next to nothing in dollars. Only a few weeks ago, Binance required millions of Shiba Inu coins as the minimal commitment, or the equivalent of about 10 USD.
Staking Shiba Inu: Rate retrieved June 2022. Staking rewards fluctuate, check current rate at Binance
You can use the Binance.com easy-to-use web interface or mobile app to stake your Shiba Inu tokens as far as the capacity allows as Binance.com limits their cold staking pools to make sure the yield doesn’t get too diluted.
- To access SHIB staking on Binance, click this link which takes you directly to the list of locked staking coins. Then type SHIB into the search bar on the left.
Staking Shiba Inu on ShibaSwap
ShibaSwap is a DEX that lets you earn income on your Shiba Inu tokens either by providing them as liquidity, farming or cold staking.
ShibaSwap uses its own lingo for these features:
- DIG = Liquidity provision, also called DeFi staking. LPs earn returns on trades within a pool that are proportional to their share. Yields are paid in real time and can be claimed by withdrawing your liquidity, but ShibaSwap locks a portion of them for 6 months.
- WOOF = Claiming of your LP returns via additional farming. You must deposit the ShibaSwap Liquidity Provider Tokens that you earned through cold or DeFi staking into a pair pool. During the time that SSLP token is deposited, additional returns are accrued in real time. You can take out 33% of your LP returns instantly, but the remaining 67% of them will be time-locked for 6 months.
- BURY = Cold staking. You can lock up your SHIB for an APY that is far more volatile than at Binance according to ShibaSwap’s analytics, but currently at mere 0.22% APY for SHIB tokens. Withdrawal is subject to the same 6 months lock as liquidity provision profits.
The biggies - Staking Shiba Inu via Ledger, Exodus, AllNodes
The US-based staking platform AllNodes does not run SHIB staking, but it might do soon as ETH Beacon nodes are listed as one of their soon-to-launch features.
For now on AllNodes, as far as Ethereum ecosystem goes, you can stake the OG ETH coin only, and that in minipools of 16 ETH each. The minipools at AllNodes launched only a few weeks back and there are already hundreds of them, so the launch of Beacon nodes is probably an event to stay tuned for.
Exodus wallet does not support staking of ETH tokens directly, neither does Ledger, but you can use both to stake on ShibaSwap or on AllNodes.
Is it worth it to stake Shiba Inu?
Shiba Inu has the total supply capped at one quadrillion tokens. This limits any reasonable possibility to create scarcity for Shiba Inu coins any time soon. Scarcity is, in theory, what drives the price of assets up.
On the other hand, SHIB is a volatile cryptocurrency that offers so many avenues to capitalize on its price swings.
Furthermore, as you will notice at ShibaSwap, there are two other core tokens critical to the governance of Shiba Inu coin - BONE and LEASH - which have much smaller total cap. In line with that, their ATH values have reached the highs of over 3 USD for BONE and over 4000 USD for LEASH.
If you believe in the power of the meme, it may be worth it to stake SHIB, just purely to stay up to date with its governance systems and its valuations.
It is worth pointing out that some cryptocurrency analysts will want to take SHIB as the lab or testnet project for Ethereum blockchain, similar to the way Litecoin has been considered in relation to Bitcoin.
Final words
As a result, we may see some interesting developments for Shiba Inu in the future that could make it a more valuable cryptocurrency.
All in all, staking Shiba Inu is a new way to make some extra income from your tokens without having to do much other than holding them in your wallet and keeping your private keys safe. If you’re looking for a place to do some staking, ShibaSwap is a good option, but Binance.com is clearly the easier one to use.
For those of you who are large stakers and don’t care about exchanges cutting up to 25% off your staking rewards on their fee, don’t miss the start of ETH token staking on AllNodes.