NFT staking allows users to monetize their idle NFTs and generate additional crypto income. Several protocols allow staking NFTs which let you participate in governance to earn additional crypto beside the staking rewards.
Here is a beginners guide on how you can stake NFTs. We will use Cyan’s Staking Protocol as an example to demonstrate the NFT staking process of Ape NFTs like Bored Ape, Mutant Ape and Mutant Ape Kennel.
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Working
There are several NFT projects that let you lock your NFTs in a vault or wallet (using a smart contract) and allow you to participate in the governance proposals of the project. This helps them secure their on-chain consensus mechanism while allowing users to control the future of these projects.
There are two basic ways of staking NFTs, through staking protocol’s vault or through your wallet. The first one lets you earn more while the second one helps you to participate in governance even when your NFT is staked.
Let us use Cyan as an example on how both these processes work.
Cyan lets you stake ApeCoin and Ape NFTs. You need both of them to stake Bored Ape(BAYC) or Mutant Ape(MAYC) NFTs. To stake a Mutant Ape Kennel Club, you need to pair it with another NFTs from either BAYC or MAYC.
NFT Staking for Maximum Earning
This method lets you maximize your earning. However, you will lose full control over the governance in the project.
Staking NFTs at Cyan is also available when you purchase NFTs on a three-month loan (also called Buy Now, Pay Later).
- Visit the NFT Staking page, choose the option as shown above.
- You need to deposit your NFTs into your Cyan account.
- Cyan will issue you an NFT loan based on your NFT value.
- These APE coins will then be locked in a smart contract.
- Cyan will transfer the rewards into your Cyan account.
- You can un-stake at any point.
NFT Staking for Both Earning and Governance
This method lets you reap dual benefits. Since in this method NFTs never leave your wallet, you become eligible to take part in Governance to earn additional rewards.
- Once you visit the NFT staking page, you need to select the second option below each NFT series.
- NFT loan is issued against your NFT. The obtained cryptocurrency is staked.
- APE coins are locked into a smart contract.
- You can take part in Governance to earn additional rewards.
- This method also lets you un-stake anytime.
Un-Staking
Un-Staking is very easy affair at Cyan.
- Go to ApeCoin staking page, and once you connect your wallet, you will see your staked NFTs as well as the staked crypto (ApeCoin).
- Click on My Rewards tab.
- Simply click at the Unstake button at the bottom of ApeCoin staking.
If you don’t have BAYC NFTs, Buy Now and Pay Later
While you are re-paying your NFT loan, you can still stake to help you cover some costs.
Buying NFTs on CYAN is a simple 2 step process. We have made it super simple to buy NFTs on our website. You just need to connect wallet and approve the transaction.
- Connecting Wallet: No account creation needed; users can connect their wallets directly via the “Connect Wallet” option, supporting MetaMask, Wallet Connect, Unstoppable Domains, Rainbow, and Rabbit.
- Buying Process:
- Wallet connection not required for browsing the Shop page.
- Over 107 Ethereum and 10 Polygon collections available for browsing in grid or list view.
- Filters help select desired traits and pricing. Selecting an NFT opens financing terms for down payment and loan duration, with an option for automatic repayments.
- Automatic Repayments deduct funds from either the user’s wallet or a Cyan Wallet, where NFTs on loan are held.
- A Cyan Wallet is created upon the first purchase or loan, where purchased NFTs are stored until the loan is repaid.
CYAN also features easy NFT Loans (a.k.a. Buy Now, Pay Later) that help you pay for your purchases in multiple transactions and also allows users to sell the NFTs in just 1 click if they do not want the loan repayments anymore.
