Know Where to Stake Your Crypto to Get the Best Passive Rewards
He rightly exposed Atomic wallet for incorrectly displaying RoI for ATOM & XTZ as 10% & 7% respectively; whereas he gets only 5% on XTZ and 8.33% on Cosmos ATOM in reality.
He also warns you of slashing risks on staking ATOM that can wipe off your entire stake.
With so many cryptocurrencies available for staking these days, it becomes a daunting task to decide where to invest to generate best passive income alongside accumulating a good appreciative asset.
Personally, I use the following tool to explore and compare staking potential of a crypto asset:
StakingRewards is a free to use tool to compare and calculate your potential rewards on about 112 different crypto assets. The data is gathered from 318 qualified providers.
They track all these crypto assets for their current price, reward, RoI, total staked coins and several other related stats. It also tells you about the risks involved (like that of slashing risk for Cosmos ATOM), other related fee (of providers), etc.
It also gives you a graphical representation of reward rate.
This website also guide you on how to stake and provides a link to buy &/or stake an asset too.
But it's not easy for everyone to make sense from so much of data to arrive on a balanced and well vetted decision for investing in an asset. So it alsotries to make it easy by assigning a score to every asset. The score takes into account:
- Ease of Staking,
- Associated Risks and
- Reward Rates.
(To give you an idea,, ATOM's current score is 78.50% and XTZ is 80.67%)
Anomaly of Atomic Wallet Displayed Rates
It's my understanding that staking rewards depends on number of dynamic parameters including the total no. of coins staked, block time, total amount staked by an individual. (Sometimes different rates are applicable E.g. for AWC it's only 17% below 1000 AWC whereas it's 23% for overe 10,000 AWC).
For ATOM staking reward starts to decline over 66% of staked coin (I'll need to confirm this figure as I'm just putting up from my memory atm). Total ATOM staked at the time of writing is 71.46%. So this is a dynamic no. can go in either direction.
StakingRewards use its own predictive algorithm to display the potential reward but it's not guaranteed and only a probable RoI.
Secondly, ATOM staking rewards are distributed on a daily basis whereas Tezos distribute on a monthly basis. Check Staking Providers section on the website. There is a button at the top right to enable Compounding of reward rate.
After I enable compunding, I see some difference.
Stakin provides 8.98% rate for ATOM and that turns up to 9.36% on compunding.
For Tezos, Binance Staking gives 6.07% reward which becomes 6.25% on compunding.
The other thing to take note of is Adjusted Rewards.
Average staking reward for ATOM is 8.26%. Add to it the adjusted reward of 1.87%. (ATOM has an annual dilution of 6.39%)
Considering all these, I'd not say Atomic Wallet displayed rates to be deceptive but yes, they should certainly add some foot note to make users more aware about those figures.
Overall, just like the crypto market is very volatie in nature, so is the Staking returns too, in my opinion. And it's not easy to predict what exactly we'll get after staking our coins. We can only make some approximations on the basis of given data.