Layer-1 Staking vs. Cross-chain Staking

If you've been involved in the Divi community for any amount of time, you are already familiar with layer-1 staking. Divi's patented mobile staking vaults have created a "set it and forget it" experience, with rewards automatically distributed to your self-custodial wallet. This solution has been an excellent foundation for stakers to increase their holdings, but we're ready to give you even more!

There are many ways to stake Divi coins: the patented staking vaults in the mobile Divi Wallet, the desktop staking wallet, and even the CLI wallet. Stakers earn these rewards because they are helping support the network by running a node that finds consensus and maintains a copy of the ledger. The frequency of these staking rewards is based on the staking weight and age and is ultimately stochastic, which in simple terms, means random. This reward frequency is best observed over a larger sample time (3+ months).

Divi's DeFi cross-chain staking is a different animal altogether. Participants can earn rewards from DEX trading fees while still being rewarded with stakes for the DIVI they allocated to the liquidity pool. Rather than being rewarded for simply supporting the blockchain, users are also rewarded for creating a healthier trading market. No other project has offered this ability.

Along with this new earning opportunity comes the need to take a few additional steps. Users on the Divi DeFi platform will have to be slightly more involved by manually claiming or harvesting their rewards rather than automatically appearing in their wallets. To claim these rewards, users must sign transactions with their web3 wallets. The process is simple, just a bit more involved than layer-1 staking. Specific instructions will be spelled out in a step-by-step platform walkthrough to be published soon. 

Staking has always been an integral part of the Divi ecosystem. Allowing users to stake their funds and validate transactions creates a robust and decentralized ecosystem and an incredible opportunity for users to put their Divi to work and earn rewards for doing so. With the DeFi platform, you can reap extra rewards by participating in an exciting industry-first offering. 

Divi strives to make crypto easy and accessible to everyone, everywhere, so we hope you feel well-informed about what we're offering with cross-chain staking. If you have any additional questions, join the Divi Discord server, and stay tuned for our next article!

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