The following is an example of Leveraged Staking with HYDRA:
Lenders lend USDT for 9.5% interest; You borrow $10,000 USDT for 9.5% interest against $10,000 HYDRA collateral USDT you borrowed is used to acquire more HYDRA The borrowed HYDRA earns you the standard on-chain APR of 45% You repay 9.5% interest to the stablecoin lender - your profit is 45% - 9.5% = 35.5% for the borrowed amount The final APR amounts to 45% for the original HYDRA amount + 35.5% for the borrowed one = 80.5%.

As with all leveraged positions, there is some risk involved. Depending on the chosen margin factor, if the staked asset falls substantially in relation to the staker’s entry point, a liquidation event would occur, essentially closing the position and repaying the borrowed stablecoin amount. In order to protect themselves from liquidation, stakers need to monitor loan-to-value ratio and provide additional collateral for the loan, whenever needed.

The Leveraged Staking economy, where users can borrow stablecoins to leverage PoS assets, is powered by the stablecoin open lending market. Lenders lend their stablecoin assets in return for interest, and leveraged staking users borrow them to acquire more of their asset of choice. All transactions in this exchange are done on a peer-to-peer basis and are handled by smart contracts, thus nothing is done centrally. The entire process of lending and leveraged staking is completely decentralized.

Whenever you stake an asset in Changex, you put your coins or tokens inside a staking pool, which generates rewards. Changex applies a commission to these staking pools and uses the commissions to buy CHANGE and distribute it to users who are staking CHANGE. The more assets you have staked, the greater the bonus to your CHANGE APR.

Delegated staking, also known as offline staking, is a method for staking HYDRA without the need for an internet connection. When you stake HYDRA via delegated staking, you pay a small fee (5%) for delegating the staking operation to someone else who does it for you. A minimum balance of 100 HYDRA coins is needed for delegated staking, and the coins must be staked in one go. The coins must also mature for 2000 blocks to be used. Once 5 HYDRA or more are earned from staking, the amount will be automatically sent to your wallet. This can only happen once every 24 hours. If, for example, you have earned 7 HYDRA for 24 hours, then you will receive 7 HYDRA. If you earn 2.6 HYDRA per day, then you will be receiving a transaction of 5.2 HYDRA every 2 days.

Lending involves the act of lending stablecoin assets to the Leveraged Staking economy for interest, which is paid out by the staker - the second party in the transaction. Our Savings product, on the other hand, automatically distributes stablecoin assets into other profitable DeFi products that offer liquidity mining and inflationary mechanisms for the best possible financial outcome.