#92 - How To Earn Free Crypto - Transcripts
Yes, that's right. You can use your existing crypto to generate more crypto. Today, we break down various methods to put your capital to work for you. If you are into crypto, it is important to learn about what staking is, how it works, the risks and benefits, and finally one of the top platforms in the industry.
this is how to make money for doing nothing.
This is a secret way to use your crypto to get more crypto.
Welcome to the bean pod. This is your place for all things stocks and crypto from beginner tips to expert picks. Use this as fuel for your investing journey because when you're in the know your money will grow.
This episode of the Beanpot, sponsored by Khyber swap
swap is a dex and dex aggregator, which is built to facilitate all your defi needs in one single platform,
fast, cheap and safe
user experience is Khyber swap sole focus to make everyone's life better. In defi. Welcome to the bean pod. This is Shane McKay, the jolly green investor
and this is josh the nifty investor
today, we're going to teach you a secret trick on how to make money by basically doing nothing. It
sounds crazy, right, but you can actually use your crypto to get more crypto,
it's something called staking,
So I feel like this is a word that gets thrown around all the time, but a lot of people maybe don't know exactly what it is, how it works and how you can benefit from it. But I mean I know I say doing nothing, obviously you know you have to do a little bit but this is putting your money that you already have to work for you to grow your wealth, grow your portfolio and I think especially in a bear market, this is one of the, this is what you know why we decided to do this episode now, how to make money when the markets are tough.
It's working smarter, not harder and we're gonna touch upon staking but also something that you may not have heard of before and that's liquid staking. Yeah.
Right. So let's just start with staking for example. So what is staking, what is staking staking is imagine you deposit money into a bank, you know, you basically let those funds to the bank and in the bank in return, the bank pays you interest and they're going to use that money to do other things. So you can think of staking with crypto as a similar way. So if you're In exchange, I will stake my $1,000 worth of ethereum with you. You'll offer me 8% return on my theory and you'll take that ethereum to maybe fund your own project or find another project or whatever it is. And that in a nutshell, is staking its it's earning interest on your crypto by providing it to another entity.
Seems smart. You know, you if you if you plan on holding something like a theory in Barcelona for a very long time and by staking it, you can actually, you know, you can buy staking it, you're also locking up your assets to help maintain the security and the networks, sorry, the security of the networks Blockchain in addition to being a validator. So you're, you're helping the ecosystem by staking it. So if you're, if you're gonna be a long term holder, it makes sense. Like, well, I'm gonna hold a theory and for a long time anyways, why not just keep it in this safe and earn interest on it. Right? Exactly.
It's, you know, when you talk about investing and it's like the pitfalls of just holding cash in your bank account cash is doing nothing for you. You might as well put your money to work even if it's a low interest, whatever it is, you put your crypto to work that you don't plan on selling for 5 to 10 years. You find a protocol that allows, you know, reasonable staking that is secure, not, you know, a scam. Like some of these, you know, luna or whatever. Um then it makes sense. I think. So,
here's the best part we've talked about staking now. What's liquid staking?
So, liquid staking is actually think this is a lot better because you know, it's kind of terrifying locking your money up for most of these platforms that you can go and finance whatever you can deposit your teeth and you can, you have to hold it there for 30 days, 30 days, 60 days, 90 days, whatever. Right? Both liquid staking. There's no minimum amount that you have to stake and you can pull that whenever you want. So it's a lot more
offers some really unique rewards as well. Um So I think there's one project. So we did a previous episode on Khyber swap um trending now or trending student tokens and a really unique way of identifying new projects. So during that episode, we actually found one called Little how um it's a product in the top 70 that you've probably never heard of and we never would have heard of it either unless we actually Use that trending platform on Cairo swap to identify. And it's really interesting, this is the number 67 project. I never heard of it. Up until this until we do that podcast. It has a $600 million $2 billion, fully diluted market cap. And it's interesting what this platform is. It's like a has a monopoly on ethereum staking pretty much right. Yeah, I
think I had some, some crazy stat about um how much was it? Where was it? Some crazy uh They currently command more than 30% of the entire ethereum staking market hosting. 4.15 million ethereum. Right, that's around 6.5 billion at today's prices going up.
Yeah. So somehow this is a project that we never would have identified, have not used the trending student platform on swap. So now we start looking into it and I think this time's up really well with the merger that's coming up because anybody who's staking their teeth right now that ether is gonna be locked up within the network for around 6 to 12 months there after the merge. So at that point, those who have staked either themselves, well, we'll be able to draw, withdraw their steak, but it's gonna be based off of what the centralized exchanges kind of have in place. So with this liquid staking, when we get dive a little bit further into little tao, you're going to see the benefits of using the liquid staking.
So, you know, we basically laid out for you what's taking is what liquid staking is. And now we're looking into why is little doubt why is little finance an authority in this space really, you know, when you look at it. Um so first on the surface you can see they support ethereum salon, a polygon polka dot and Kasama. So they've got all, basically the major staking chains. Um so it doesn't matter, you know, where your funds are, what chain, you know, you've got your wallet on, it's supporting everything. So right away, it's an easy onboarding for any user that's new to staking to try to get into it, you know, it's not a theory. Um only if you're on Solano. Well, it's like, oh, I don't want to do, I don't want to swap blah blah blah, they support all five of those chains. Um so right away, that's, that's a, that's a big thing for me.
Yeah, so they're trying to make staking really simple, but also secure. And so basically They're trying to make it censorship resistant, so ensuring that the laws that govern the network are set in advance so they can't retroactively be changed later on because this is where some of the issues come in later when a platform of a sudden halt to withdrawals and all this stuff. So that's why the liquidity staking is so great. They offer so I was looking at the eat, they offer 3.5%. There's $7 billion currently staked on the platform. That's a lot. This is like a project we've never heard of. Um Solano, they offer 5.6% if you stake on their polygon 6.3 polka 0.16 point 5% and Osama 12.9%. So it's the amount of rewards this platform is paid out to. So it was founded in 2020 and they've done $215 million 180,000 acres. Currently
it's quite substantial. And you know a lot of people that are going to be listening to this would think oh you know, maybe I don't have that much money in crypto, I don't have enough to do that. But one of the things, one of the things that's great about libido is there's no minimum force, you know, some some protocols, it's minimum $500 minimum $1000 to get access to their rewards in any there's tears and stuff but with no minimum, even people that you know maybe just want to test it out with a smaller amount of crypto they can get involved as well. So again ease of adoption. Right? That's that's key.
Yeah so with liquid staking to what what what ends up happening and this is where it's different from just regular staking. So users are able to deposit their tokens. Right? So on a traditional platform you will stake your teeth, you'll get nothing in return. It just Eureka is locked up for 30 days. You have to do X. Amount and then you'll receive your interest at the end when you pulled all it with liquid staking. A little doubt you deposit your tokens but then you receive a tradable liquid token in return. So here's here's why this is really good because when you lock your ether it becomes immobile. It becomes unproductive and inaccessible. So when you stake your teeth on later dow you'll get something known as steak de so it'll look like S. T.
E. Th right so with this it's kind of like imagine like trading your tokens and then getting a receipt in return. You can now use this receipt within the ecosystem so you can still get all the benefits of defi while your tokens are being stakes, you're getting these other tokens in return to be
That's the best part
That is definitely the best part so you know to put it into a real life example. Again if I'm gonna stake my $1000 of ethereum on finance, I cannot do anything with that ethereum, it's locked on finance for 30 days. I don't get any sort of token or N. F. T. To do something else with, I just it's basically gone, I can't touch it but not only is little doubt allowing you to remove it at any time, they're giving you something that you can use while at stake.
Yeah. So if you put $1000 and you get $1000 in steak teeth which you can then use for borrowing against it or earning yield on it. So there's so much more you can do with the liquidity with the liquid staking. I
mean, you know when we dig into this project and we're talking about staking, you know, we haven't really talk about staking or farming a lot on this channel because it is maybe one of the more technical things in crypto but you know when you really simplify it and you look at projects that make it simple for the user, you can see why it's become so popular and when you look at what little is doing, you can see why they've become so popular because what they're doing in the field of staking is very cutting edge. They're on the forefront of all these kind of features that make it easier for the user um and provide a lot more flexibility while keeping the security.
Yeah, so little is actually one of the first to launch liquid staking for Edith. Um So it has first mover advantage and I think that's gonna be really important for this platform. In addition little doesn't, you don't have to do a K. Y. C. For little so anybody in the world can access this and utilize it with, there's a lot of other platform. You have to go through a K. Y. C. Process um where you give up all your personal data and some platforms will allow you to use it and someone this one allows everybody. So. No okay I see.
It's that truly decentralized which a lot of people in crypto like right so that I like that a lot. Um and you know going back to the theory emerge um if you look at there's a platform called dune analytics which shows all these platforms how popular they are, how much is staked. And you can see there's a ton of that has been staked on libido in the run up to the merge. So it's a place where people are flocking to stake their to get more ether because they believe in the long term vision of ethereum and they're choosing libido over basically every other platform because of the reasons that we've laid out today because they're getting steak teeth which they can then reinvest and it's you know it's a compound
effect. So if you're going to invest in the L. D. O. Token for lid. Oh I was looking at the chart and it has a ton of different spikes in it. And originally originally was just supporting Ethereum hence why they have $7 billion dollar steaks with ease. But then they introduced um they added support for Selena and I saw a massive spike in price came back down. Then they offered a referral program. So anybody who referred individuals to this platform would receive state in return. So that was really cool. Then they saw they had a partnership with Maker Dow and with Maker Dow they saw another spike in price.
Then they brought on ave 1/4 1. So each time they made an announcement there was a huge spike in price the most recent one, Khyber swap.
Yeah so that probably explains why there was a spike. Right?
Yeah. So it's interesting that I mean first of all Khyber swap is an official partner of this channel but look at the names are sitting next to polygon ifs Alana um they make it out and now swap.
It's pretty it's pretty awesome. And one other thing I should add about the token is a governance token. So if you hold the L. D. O. Token it allows you to you know vote on the changes and proposals and maybe the new additions to their platform. So if you know if you're really into this liquid staking and you want to become basically a part of the community then holding the token is definitely a good option. Um But you know what we tweeted about this, the partnership with Khyber swap, you know, as a channel partner, we're keeping up to date with everything they're doing. Um But I think this partnership was maybe more important than a lot of people actually realized because you're taking basically the authority in liquid staking and adding it to Khyber swap, which for all the reasons that we've been preaching about is the number one in our opinion dex dex aggregator in crypto, you're taking one industry leader partner with another. And now if you actually go on Cairo swap, you can access all of these great liquid staking products that lido Tao offers through Khyber swap.
Yeah that actually makes this this partnership partnership actually makes Khyber swap, the world's first farming mechanism that supports concentrated liquidity which aims to give liquidity providers the best earning potential on the capital due to the liquid staking its
um you know what one of the cool things is when you look at it. Um When you when you stake X. Token you're gonna get an N. F. T. That represents your position.
not only, you know with little you're getting the state and stuff, but you're getting an N. F. T. So now they've brought into the N. F. T. Technology. I feel like it's very cutting edge, all the things they're doing as opposed to just like here we'll take your theory and it's locked up. Here you go, have a nice day, you know, the steak teeth, there's N. F. T. S involved.
I just think it's, you know, it's it's a lot, it's a lot more attractive and when you, when you look under the hood it's no wonder they're doing so
well. Yeah, like I said, I had no idea what the heck this thing was um doesn't have a flashy name, but after using the trending section of being able to identify this, it's actually quite unique. Yeah, and I think that there emerged coming up, it might be a place where more people are going to be flocking to and essentially driving the price
up. So the partnership with Khyber swap was just kicked off within the last month or so. They started with the polygon change specifically. Um So even though little doubt does support all those change, we talked about the one with Khyber swap. If you're going to do it via Cairo swap, it's all the Matic eligible pools. Um So if you go to the corporate website, you know, you connect your meta mask or whatever, you know, trust wallet, whatever you use, um you switch your network to polygon and you go to pools on the website, then you can see all the different options for liquid staking, which is provided via the partnership with little doubt. So if you're like us and you're on Khyber swap every day, looking for training projects, seeing what's trending now, seeing what's trending soon, which is, you know what we love now, there's another thing you can do on there, which is steak using the polygon, Matic's Blockchain liquid staking with these N. F. T. S. All the good stuff that we just talked about it. All right there on the one platform.
Yeah. Perfect. So look, I haven't really been doing much staking, but after reviewing what little doubt does and in terms of being able to stake but also get something in return, I think that's cutting edge. And with these guys being at the forefront and the leaders in the space and the fact that the long term mission is to make liquid staking completely crustless. That means that there's no centralized uh exchange or entity that's preventing you from withdrawing or you know, holding or staking from the protocol. It's it's all written into the smart contract. So there's no there's no that none of that fear that needs to be associated with what sometimes people think of staking and locking up the tokens.
100%. I mean, I hope that in today's episode it's a new topic for this channel staking and farming. I hope you learned, you know, what staking is the benefits it can provide to your portfolio in times where the market may not be working in your favor. It's something that we're gonna be looking to a lot more. Um and you know, partnership between two industry leaders from two different sides, I think it's worth noting even just the fact that the token is responding to it, right? So there's a lot that can be learned from, from these new things. And even in crypto, like it's always about learning about new things, new ways to generate money. It may not be trading or investing, but it's staking or yields or pools. There's so many things that you can talk about and I think, um, I think it's a topic that we'll probably cover a little bit more going forward. It's
just another tool in the tool belt. That's why you guys all tune into the bean stock.
That's it, right? Maybe learn.
There we go. Hey, makes you guys tuned to next episode,
that one is going to be a banger.
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