Introduction
The On-chain Earn service provides a streamlined way for users to potentially earn rewards by staking their digital assets through the OKX platform. This guide breaks down the key terms, processes, and risks associated with using this service, helping you make informed decisions.
By participating, you agree to the terms outlined in this agreement and the broader OKX Terms of Service. It’s essential to understand how staking works, what rewards to expect, and the inherent risks involved in decentralized finance (DeFi) protocols.
Core Definitions
Understanding the terminology is crucial for using the On-chain Earn service effectively. Below are some key terms you’ll encounter:
- Staking: The process of locking your digital assets in a blockchain protocol to support its operations, such as transaction validation.
- Rewards: Incentives you may earn for staking your assets, typically distributed in the form of additional tokens.
- Redemption: The act of unstaking your assets and returning them to your available balance.
- Liquid Staking Token (LST): A token you might receive that represents your staked assets, allowing for potential liquidity while they are locked.
- Service Fee: A percentage of the rewards you earn that is deducted by OKX for providing the staking service.
- Staking Protocol: A third-party blockchain network or DeFi protocol where your assets are actually staked.
How the On-chain Earn Service Works
The service offers two primary methods to begin staking your digital assets.
Manual Staking
This method gives you full control over your staking decisions. You manually select the specific staking protocol and the amount of digital assets you wish to stake. The platform will display an estimated reward rate and a minimum staking amount for each protocol.
It is important to remember that the estimated rewards are not guaranteed. Actual rewards can vary based on the protocol's performance. Once a staking order is placed, it is typically irreversible.
Auto-Earn Feature
For a more hands-off approach, you can opt into the Auto-Earn feature. When enabled, newly purchased or deposited digital assets in your funding account are automatically staked according to your pre-set preferences.
You can review and select which protocols to use for each asset. The order quantity is not fixed and depends on the idle assets available in your account. You can disable Auto-Earn at any time, but you must manually redeem any assets that were already staked through the feature.
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Understanding Rewards and Risks
Reward Calculation and Distribution
Rewards are not immediate. They begin accruing from the "Reward Calculation Day," which is the day your assets are successfully staked on the chosen protocol and all its conditions are met. This may not be the same day you placed your order.
- Rewards are calculated daily based on a 365-day year.
- The distribution frequency depends on the chosen protocol.
- Rewards are paid in the same asset you staked or, for some protocols, as Liquid Staking Tokens (LSTs).
- OKX only distributes the rewards it actually receives from the protocol, minus the applicable service fee.
Key Risks to Consider
Staking digital assets involves significant risk. You must be willing to accept the potential for loss.
- Impermanent Loss & Market Volatility: The value of digital assets can fluctuate wildly. You may redeem your assets at a lower value than when you staked them.
- Liquidity Risk: You may be unable to redeem or trade your staked assets (or any LSTs you receive) immediately, or you may have to do so at a significant loss.
- Protocol Risk: Rewards are determined solely by the staking protocol. OKX does not guarantee any returns. Historical performance is not indicative of future results.
- Technology Risk: Technical issues could prevent access to your assets or the service.
- Regulatory Risk: OKX may need to modify, suspend, or change the terms of the service at any time without prior notice.
The Redemption Process
To unlock your staked assets, you must submit a redemption request through the OKX platform. Important notes on redemption:
- Partial redemptions may not be allowed for some protocols.
- You stop earning rewards on assets once a redemption request is submitted.
- The unstaking process can take time—from days to weeks—depending on the protocol's rules and network conditions.
- OKX is not liable for losses due to delays between the estimated and actual arrival time of your assets.
Fast Redemption Feature
OKX may offer a "Fast Redemption" option, which is selected by default if liquidity is available. This feature aims to return your assets quicker than the standard protocol unbonding period.
However, it is not guaranteed. Liquidity for this feature is sourced from other users' staked assets, and OKX can suspend it at any time without notice. If liquidity is insufficient, you must wait for the standard redemption process.
General Terms and Conditions
OKX reserves the right to:
- Modify this agreement or any service terms at any time. Your continued use of the service constitutes acceptance of these changes.
- Introduce or adjust staking and redemption limits.
- Exercise any voting rights associated with staked assets, as these rights are delegated to OKX by you.
Asset Segregation: OKX maintains that your staked digital assets are always held segregated from its own corporate assets. You retain ownership of all assets you stake and any rewards you earn.
Frequently Asked Questions
What is the On-chain Earn service?
It is a service that allows you to stake your digital assets on various blockchain protocols through the OKX platform to potentially earn rewards. OKX handles the technical complexity of interacting with these protocols on your behalf.
How are rewards calculated?
Rewards are determined by the staking protocol you choose. They begin accruing once your assets are successfully locked on the protocol. OKX displays an estimate, but the actual reward rate is variable and not guaranteed. Rewards are calculated daily and distributed after OKX deducts its service fee.
What is a Liquid Staking Token (LST)?
For some protocols, instead of directly staking, you may receive an LST. This token represents your staked assets and may provide liquidity, but it carries its own risks. There may be no active market for an LST, its value may not mirror the native token, and it might only be usable on OKX.
Can I unstake my assets at any time?
No. You must submit a redemption request. Once submitted, you stop earning rewards. The time it takes for your assets to be returned varies significantly by protocol and market conditions, potentially taking weeks. The "Fast Redemption" feature is not always available.
What are the main risks of staking?
The primary risks include the high volatility of digital asset prices, the potential inability to access your assets immediately, the lack of guaranteed rewards, and the technological risks associated with DeFi protocols. You should only stake assets you are willing to lock up and potentially lose.
What fees does OKX charge?
OKX charges a service fee, which is a percentage of the rewards you earn. This fee typically ranges from 1% to 5% and is deducted before rewards are distributed to your account. There is no upfront fee for staking.