1. Centralized Staking via Binance Earn
Staking type: Locked Staking (Pre-locked for a specified period)
Common lock-up period: 30 days
Expected Annual Yield (APY): 5.8%
Advantages:
User-friendly interface within Binance without the need for any additional procedures.
Automatic distribution of rewards at the end of the lock-in period.
Coverage under the SAFU fund to protect user assets.
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2. DeFi Staking on Cardano (Example: Minswap)
Staking type: ADA liquidity pooling in Minswap pools
Expected Annual Yield (APY): 5.7%
Advantages:
Withdrawal flexibility whenever you want without waiting for an Unbonding period.
Opportunities to earn additional tokens through protocol support programs.
Operated within a decentralized framework without intermediaries, reducing centralized risks.
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3. Quick comparison
Feature Centralized Staking (Binance) DeFi Staking (Minswap)
APY 5.8% 5.7%
Ease of use High (One-click) Medium (LP Setup)
Withdrawal flexibility after 30 days lock-in instant
Risks Centralized platform risks Smart contract risks
Additional rewards None Potential incentive rewards
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4. How to choose
1. Beginner or small capital: Prefer centralized Staking via Binance for ease of use and security.
2. Flexibility and additional returns seeker: Try DeFi Staking on Minswap to benefit from instant withdrawal and protocol rewards.
3. Risk diversification: Spread your investments between the two platforms for a mix of security and flexibility.
What is your choice in staking: security and simplicity on Binance or flexibility and returns through DeFi? Share your opinion or experience!