The blockchain-based payment processing network, PlasmaPay made a major announcement this week. According to company officials, the platform now supports advanced DeFi functionalities. Users can earn some extra crypto just by staking their coins on PlasmaPay. The news was welcomed by investors for a combination of reasons. Primarily, merchants welcomed the move that provides them access to much-needed revenue streams.
Two Staking Options Now Available
PlasmaPay's latest upgrade allows anyone to effortlessly earn a passive income staking their coins on the platform. The rewards for your staking efforts are automatically distributed via advanced smart contracts. This approach removes all human intervention from the equation and ensures that you never have to wait for your rewards when you utilize PlasmaPay's network.
Security Staking
The first type of staking available to users is security staking. This type of staking requires you to lock your funds into a network wallet. These locked funds help to verify the state of the blockchain in a Proof-of-Stake network. PoS staking was the first type of staking available to crypto users in general. Since their introduction, PoS networks have been touted as a more eco-friendly and profitable consensus mechanism versus Bitcoin’s Proof-of-Work approach.
Liquidity Staking
DeFi has made it possible for users to take advantage of various other staking mechanisms to produce a passive income. One of the most popular DeFi staking systems today is liquidity staking. In this scenario, you take a certain amount of crypto and agree to lock it into a liquidity pool.
There are a couple of different types of liquidity pools as well. There are liquidity pools that are meant to provide liquidity to new projects in the space. There are also liquidity pools that allow other users to borrow against it. This style of liquidity pool is more popular than ever because it allows you to earn a passive income and interest. Best of all, the rolling nature of the liquidity pool ensures that you receive your loan repayment on time, even if the person you lent the holdings to is unable to pay.
Staking is Safer
The main draw to staking versus trading is the removal of all technical barriers. Users can stake their tokens without the need to spend hours researching the market climate and the particular companies worth investing in at this time. The dynamic and volatile nature of crypto trading makes it extremely risky for new users. These risks are multiplied when FOMO and other emotional aspects began to take control of new investor’s strategies.
Wrapped Tokens
Staking is an awesome feature that until recently was only available on new blockchains using new tokens. However, this situation is different now that wrapped coins exist. A wrapped token is a coin, such as Bitcoin, that has been wrapped in a corresponding token to function on another blockchain.
The PlasmaPay system leverages the HyperLoop Bridge Protocol to wrap your favorite cryptocurrencies. Wrapped Bitcoin allows users to utilize their satoshis to earn a passive income. This is a fantastic option for HODLers who may not want to trade their tokens but seek access to easy profits. Consequently, wrapped tokens are one of the most hyped DeFi features at this time.
A Full DeFi Ecosystem
The PlasmaPay DeFi ecosystem features an innovative design that leverages the innovative power of blockchain to accomplish some previously unimaginable tasks. At this time, PlasmPay users enjoy unlimited access to a secure cryptocurrency wallet, mobile apps, corporate accounts, fiat onramps, and staking capabilities. This combination of features places PlasmaPlay ahead of the competition in terms of innovation and overall ROI potential.
It All Starts with Plasma Chain
At the heart of the PlasmaPlay concept is a purpose-built DeFi-first blockchain. The developers behind the system felt it was vital to create this newly designed network to help alleviate some of the problems currently plaguing other DeFi platforms.
Scalability
Scalability is one of the biggest barriers to large scale DeFi adoption. As it stands today, nearly all DeFi platforms utilize the Ethereum blockchain. This dependence on a legacy blockchain leaves the entire network open to scalability issues. Ethereum's scaling issues first came to light during the 2017 bull run.
At that time, the launch of the popular crypto-collectibles game, CryptoKitties, and a market flooded with new and eager investors nearly screeched the entire network to a stop. During this congestion, fees went through the roof and normal transactions took hours or even days to complete versus seconds.
Sadly, many of the same risks still plague Ethereum. The introduction of the Plasma Chain provides much-needed relief to users and developers. Both of who require smooth network operations to utilize the services offered. Impressively, PlasmaPay can handle 160,000 TPS.
PPAY Token
PlasmaPay introduces a new governance and utility token to the market in the form of PPAY. PPAY is what users stake when utilizing the new DeFi services the platform offers. This token is also what users would collect to gain more voting rights in the system’s governance structure. The PPAY token helps to keep network consensus both on and off the blockchain.
Merchants Now Enjoy DeFi Capabilities
PlasmaPay is the first company to offer DeFi services integrated directly into a payment processing system designed for merchants. Merchants that accept Bitcoin can now multiply their earnings with ease. The system allows vendors to accept crypto payments using any of the top coins in the market.
From there, merchants can allocate a certain amount of funds to reinvest back into DeFi liquidity pools. These funds then instantly start earning more profits. This powerful feature allows users to leverage their profits from in-store or online sales into additional ROI without any extra risk.
A New Era in DeFi
PlasmaPay developers continue to display their creativity and dedication to increasing user ROIs. As the first network to merge merchant processing and DeFi, it’s a valuable tool for business owners. You can expect other payment processors to follow suit if PlasmaPay's newest venture goes as successful as predicted. For now, interested users can start earning free crypto rewards today.
