HOW’S THE STAKE SYSTEM WORK? (STAKE X0 TOKEN TO GET xUSD) AND WHAT IS xUSD

Deciding to invest in cryptocurrency, such as shares and stocks, is a very risky way to join the business as it is never be guaranteed. Most people will suggest to never use this way to invest the money before you actually lose all the cash or will gain way more cash instantly. Because cryptocurrencies are very volatile, the value in the market can crazily go up and down in a blink of an eye. People who join this business are the ones who most likely to play either bravely play in the cryptocurrency to gain more cash with a big risk or not join at all. Currently, there is a new way to gain more money in the business. However, it comes with the bigger risk. It’s called the staking system.

What is Staking in Crypto

The staking in cryptocurrency is a way to hold away their funds in crypto assets to support the integrity and security of the blockchain network. However, by doing this way, the investors will be rewarded with the new currency. To simplify, the staking system maybe the complicated idea but be the most simple one as alternative to crypto mining and this is known as the proof — of — work system.

So, what makes the users’ crypto coins earn more rewards while being staked is because the blockchain that is held puts it to work. However, before going deeper on how the blockchain work to provide more rewards, it’s useful to understand about the risk that you may face and followed with understanding how it works.

The Risks of Stake System

1) Plunging Cryptocurrency Prices

The falling of cryptocurrencies prices can be the biggest risk as it put you loss possibility. So, choose your asset carefully before deciding to stake.

2) Selling the assets can be a challenge

As you hold the assets, at some point, selling them back and to turn into cash can be a challenge as it depends on supply and demand.

3) The lock — up period

As you need to lock away their funds, some assets may come with locked period and during those period, you can’t completely access them.

4) The waiting period to receive high rewards

As some of the assets come with locked period, they also don’t pay out the staking rewards at any time.

5) The possibility of project failure

Before deciding to join the game, you need to understand that not all projects will always successful.

6) Can be a loss of theft

This also a big risk, if you don’t pay more attentions, you may got scammed

7) Lock away the minimum holdings

Some projects require to hold away minimum holdings of the assets to receive rewards

How Does it Work

This staking system will only work out if the cryptocurrency that you own allows staking. If yours are allowed, you can stake them out and earn the percentage rate reward over period of time. The reason on how you got rewarded is because of the blockchain. The cryptocurrencies that allow to be staked use a consensus mechanism which is a way to ensure that all transaction is valid without payment processor or bank to do verification.

How to stake x0 Token to get xUSD

XUSD is a two token systems including the stable coin and share token. The xUSD tokens (XUS) are minted as rewards in a liquidity program. Thus, xUSD is chosen by the users to be staked to gain rewards. There are some benefits when you decide to stake it, including:

- 500.000 supply in total

- There will be reward rate halves every month, starting from minimum 100.000 and maximum 300.000

- CR (Collaterial Ratio) boost

When the x0swap users provide liquidity to a pool, they will gain liquidity providers token and they can stake it in the Twin USD feature to stake it and gain X0 token bonus too.

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