Let's talk about earning Ethereum (and stable coins) by staking tokens
I am always on the lookout for viable methods to earn Ethereum. As far as I am concerned, suitable means would constitute an investment in a company that has a proficient team working successfully on a promising project. I personally am looking for a long-term, stable, passive income; most preferably in ETH or in a stablecoin like USDC, USDT or DAI.
What is this GOVI token mentioned in the title?
In short: the GOVI token is the governance token for CVI. CVI is the abbrevation for "crypto volatility index". As cvi.finance website explains it:
"By computing a decentralized volatility index (CVI) from cryptocurrency option prices, the new system analyzes the market’s expectation of future volatility. COTI’s method addresses the challenging liquidity environment of this evolving asset class and allows us to extract the needed data to evaluate implied volatilities."
"CVI includes a decentralized governance component, where holders of the GOVI token can vote on matters such as the tradable assets, leverage used, deposit amounts, platform fees and more. By staking their GOVI tokens, GOVI holders will also share fees from the CVI platform."
Effectively, this means that by staking GOVI tokens on the cvi.finance platform (facilitated by Ethereum transactions and thereby placing your tokens up for staking), you earn Ethereum and USDT in return. The ongoing rate, the APY, sits at around 10% by the time this post was written.
How would I proceed to earn ETH and USDT exactly?
First, you have to acquire GOVI tokens. You can do so by using a CEX or DEX of your choosing. For example, GOVI token has been listed on KuCoin not long ago.
After you acquired a sizeable amount of tokens (in respect of Ethereum mainnet gas fees I believe a $1.000 worth or more makes it worthwhile) and have transferred to your Ethereum wallet, you can visit https://cvi.finance to stake them.
Another way of acquiring GOVI tokens, as stated on CVI's website:
"Traders can get GOVI tokens by buying positions on CVI platform. In order to earn GOVI tokens as a liquidity provider, you need to stake LP tokens you get for providing liquidity in the Manage your tokens tab."
You'd fire up cvi.finance and navigate to "Platform". After selecting either "Basic" or "Advanced", you click on "Tokens" to see your options to go forward with the staking of GOVI. (For our purposes, "Basic" platform will suffice)
The GUI will look like this screenshot below.
You will select the amount of tokens you want to stake and will have to make two Ethereum transactions to actually approve your tokens to stake on the platform. Use https://www.gasnow.org/ to determine a reasonable time frame to carry out your transactions in regard of transaction fees.
When you're done with the Ethereum transactions, you should see a summary like the one above.
Congratulations, you will earn ETH and USDT by staking your GOVI tokens daily, until you unstake.
No investment advice. Do your own research. This post constitutes a short summary of information for handling the cvi.finance platform only.
resources:
[1] https://cvi.finance/faq