On-chain staking on Bybit: The Complete Guide to Earning Passive Income

On-Chain Services from Bybit offer a convenient way to earn on cryptocurrencies without complex technical operations. Instead of setting up nodes and monitoring gas fees yourself, you can transfer your tokens directly onto the blockchain through a specialized platform and receive rewards. This is a revolutionary approach to passive income in the world of decentralized networks.

What is an on-chain service and how does it work

On-chain staking is the process of directly transferring cryptocurrency into a Proof-of-Stake (PoS) network and earning rewards for it. Unlike traditional staking, which requires in-depth technical knowledge of node operation and key management, on-chain products are designed for regular users.

The platform handles everything for you: managing fees, overseeing the validation process, and calculating rewards. You gain access to popular PoS tokens such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) in just a few simple steps. This approach also enhances network decentralization and minimizes risks associated with centralization of power.

How rewards are formed in on-chain staking

Rewards come from two main sources. First, newly created tokens generated by the blockchain as incentives for validators. Second, transaction fees paid by network users. When you participate in on-chain staking, you strengthen the system’s security and receive your share of these rewards.

Different protocols distribute rewards differently, depending on each network’s specifics. To access the on-chain platform, it’s important to understand that income will fluctuate based on the amount of assets staked and the overall network condition.

APR mechanism and bonuses

APR (annual percentage rate) in on-chain services constantly changes. It is influenced by the amount of assets staked, network inflation levels, and transaction volume. Bybit provides transparent information about the expected APR for each on-chain product so you can make informed decisions.

In addition to the base APR, some on-chain pools offer extra bonuses. These bonuses are credited daily at 6:00 UTC directly to your account. To qualify, you must maintain staking status for a full 24 hours. For example, if you transfer tokens to the on-chain platform at 12:00 and leave them staked until 12:00 the next day, you will receive the bonus at 6:00 UTC. The size of the APR bonus can vary daily depending on the prize pool and total staking volume.

Advantages and risks of on-chain staking

On-chain services offer significant benefits. You earn passive income without needing to understand technical details, and you don’t have to worry about gas fees or node management. Additionally, on-chain staking supports decentralization and the security of Proof-of-Stake networks.

However, there are risks to be aware of. First, market risk — the value of your assets may decline during staking. Second, some on-chain protocols require locking periods during which you cannot withdraw your assets, potentially delaying withdrawals. Third, technical failures in the blockchain or security attacks could cause delays in reward receipt or reduce your rewards.

Requirements and operational details for the on-chain platform

To use Bybit’s on-chain products, standard identity verification is required. This is a common practice across all Earn services on the platform.

When you submit a request to transfer assets into on-chain staking, it cannot be canceled. However, you can transfer tokens to the on-chain platform at any time or withdraw them from staking. The processing time for withdrawal requests depends on the specific protocol and may vary.

Fees and supported protocols

Bybit charges a service fee for on-chain services as a percentage of your earnings. For example, if you earn 10 USDT and the fee is 1%, you will ultimately receive 9.9 USDT. The fee amount depends on the specific on-chain protocol and can be reviewed on the staking page.

The on-chain platform supports various tokens and Proof-of-Stake protocols, each with its own rules for depositing and withdrawing assets. A detailed list of supported on-chain solutions can be found on the platform’s dedicated page.

Frequently asked questions about on-chain assets

Can I withdraw assets from on-chain staking at any time? Yes, you can submit a withdrawal request at any moment, but processing time depends on the on-chain network protocol. For detailed withdrawal timelines, check the withdrawal page for your on-chain asset.

How can I get more information about a specific on-chain pool? For detailed rules of each on-chain staking pool, refer to the platform’s announcement center. There you will find the latest information and specific rules for each on-chain solution.

On-chain staking from Bybit is a modern way to earn on cryptocurrencies, combining ease of use with the opportunity to receive real rewards from blockchain networks.