Is Kaito staking really a risky strategy?
Personally, I think it's much better than Yapping.
Staking reward tips for beginners just starting with Yapping.
@KaitoAI, let's dive into sKAITO staking and the YT token mechanism.
1. sKAITO Staking
• Staking KAITO tokens earns you sKAITO
• sKAITO automatically reflects interest over time, adding value
2. YTKaito
- This is a premium structure that allows you to withdraw interest in advance.
It's a feature provided by @pendle_fi.
Basically, it's a typical staking model, but
YT tokens will become a game changer in the second half of 2025.
Now, let's talk more about the eco's flower, the YT token.
YT is a tokenized right to future returns.
You can think of it as the concept of receiving staking rewards in advance.
For example, the idea is to receive one year's worth of staking rewards in YT in advance and then trade or utilize it again.
The logic of a risk-free profit strategy:
1. Acquire sKAITO + YT through KAITO staking
2. Sell YT tokens in the market
3. Use the sale proceeds to buy additional KAITO and stake it again
4. Expand your position through compounding effects
Theoretically, it's a structure that maximizes returns without losing principal.
However, there are unexpected risk factors.
YT is a derivative product that provides interest in advance with a premium, as I mentioned earlier.
Therefore, as the expiration approaches, the value decreases.
So, you bet on receiving as many rewards for staking YT before expiration. There is risk, but
if we base it on the 12 Kaito Eco (staker rewards) in September like this year in the second half of 2025, you would have already made several times the premium you deposited.
When analyzing actual returns,
the current staking APY and the extent of the YT token premium are key.
If you have to sell YT at a discount, the overall return could drop significantly, so in the first half of 2025, the rewards excluding newton were significantly low, meaning if you deposited money after newton, you would have suffered a huge loss due to YT staking.
So, to summarize:
1. Just stake Kaito. (Low Risk)
Risk factor - Kaito price drop
2. Exchange YT Kaito at Pendle (High Risk)
If you expect large Eco rewards, you can gain a lot of staking rewards with a small amount of money through this.
I plan to accumulate the amount I receive by staking sKAITO while receiving Kaito reward Eco.
I don't want to be constrained by time...
Anyway, what I really wanted to say is that Eco is much, much better than Yapping, so I highly recommend it!
And one thing you must never forget is to think carefully about how, when, and based on what profit you will exit after staking.
Don't forget the basic principle that there is no "risk-free" in crypto.
gm, invest wisely.
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