It should be noted that the trends in the cryptocurrency market are repeated on a cyclical basis. Cryptocurrency prices are rising fast and then falling faster than they have been rising. Digital currencies have been created as an alternative and additional source of income. In order to obtain such an additional source of income, at the very beginning and in the cryptocurrency market, each investor was required to trade on exchanges or to mine a given cryptocurrency. It is natural that people have started to look for additional ways by which you can achieve complementary, passive profits. One such way is the placement of a crypto (staking). Staking is independent of market price volatility and is a way of generating passive income for holders of the cryptocurrency, because the income earned from the placement is, as a rule, paid in relation to the percentage and in the same cryptocurrency, the placement of which we have made.
Staking is also used as one of the network consensus mechanisms (Proof of Stake), which creates new blocks in blockchain and serves as a method of verifying transactions and often also network security. Cryptocurrency placement can be described as holding capital in a bank account and receiving interest on deposited funds for a more explicit comparison. In this case, these funds are blocked for a period of time, and in return investors receive an appropriate part of the profits in the form of cryptocurrencies. The more coins/tokens an investor places, the greater the reward he will receive, as in the case of interest in a bank account assuming an investment. By holding cryptocurrencies on a staking platform and thus supporting the network we are in an appropriate way receiving gratification. This means that we will receive additional coins/tokens as long as we block our funds.
One of the indisputable advantages of staking is that others eliminate the need for expensive equipment needed to mine cryptocurrencies, which also consumes huge amounts of electricity. Another advantage is that staking provides an alternative and relatively easy to obtain source of passive income. In addition, the number of shares placed neither increases nor decreases over time.
- With collateral — covering its value,
- With the system of repurchase and burning of BSKT tokens.
1. A fee of 2% of the value of each transaction will be taken from the transfer — half is burned out, the other half goes to the staking/reward redistribution pool which indeed speeds up the process of reducing supply. Smart Contract itself assumes that a total of 90% of all BSKT will be burned -> supply will decrease from 21,000,000 to 2,100,000
2. The BSKT token is secured with a basket of seven cryptocurrencies that cover its value. The security so adopted is intended to ensure a constant and stable increase in the value of tokens. Thanks to the correct match of coins in our basket, its value is less susceptible to fluctuations appearing in the cryptocurrency market. The BSKT token security chart looks like this:
- Bitcoin (BTC) — responsible for 25% of the value of the coverage,
- Ethereum (ETH) — responsible for 25% of the coverage value,
- Polkadot (DOT) — responsible for 10% of the coverage value,
- Smartkey (SKEY) — responsible for 10% of the coverage value,
- YfDAI.finance (YF-DAI) — responsible for 10% of the coverage value,
- USD Coin (USDC) — responsible for 10% of the coverage value,
- Basketcoin (BSKT) — responsible for 10% of the coverage value.
3. All listed cryptocurrencies that make up the BSKT basket will be used to generate additional profits on platforms such as:
- Crypto.com (profits of 3%-12% APR),
- YF-DAI (profits up to 72% APR),
- Swissborg (profits up to 20% APR),
- and other decentralized profit-generating platforms in DeFi format.
Revenues from these platforms will be used in the repurchase process for the redemption and burning of BSKT tokens, contributing to a significant reduction in supply on the secondary market. 90% of the above profits will be used for repurchase and burnout, while the remaining 10% will be used for ongoing and necessary expenses related