How Solana Staking Works in Ottr

Published on: 02.12.2022

Ottr wallets are cryptocurrency wallets that are protected by the Solana blockchain. They are the modern equivalent of the Swiss bank vault.

For its users to earn new Solana every week, at ~6% yield annually, this is how Solana staking works in Ottr.

How Does Solana Staking Work?

A blockchain, such as Solana, is simply a list of transactions. A network of computing machines known as validators had to process and validate each new transaction. To process transactions, each machine must hold a large amount of Solana; This is the layout of the Solana blockchain. Validators are rewarded with new Solana tokens at a rate of 6% per year in exchange for their efforts.

Staking allows users to give Solana to validators in exchange for a share of the rewards system. It is the fluid that keeps the Solana network running. In exchange, users receive a 6% yield for their Staked Solana.

Customers can stake their Solana tokens directly with vetted validators on Ottr. After you’ve staked some Solana, you’ll begin receiving new Solana tokens every three days. You can view and claim your rewards under Earn in the Staked Solana section.

How Solana Staking Works in Ottr:

Etherfuse is our validator partner. Etherfuse is responsible for decentralizing the validator system so that no validator or geography has undue influence over the Solana blockchain. Ottr wholeheartedly supports this mission!

How Safe is the Yield in Solana Staking?

The next question to ask, as with any yield product, is how safe is the yield from Solana Staking? Some crypto yield products advertise extremely high yields in order to attract users, but force to reduce yields because they do not generate enough income to match their promised yield. We do not want to offer this type of product to our customers at Ottr.

Because Solana Staking is a core process within the Solana blockchain, they believe it provides a sustainable yield. Solana Staking will be necessary, and the yield will be produced, as long as computations and applications are built on Solana. This is what keeps the 6% yield in place.

Blockchain is Beautiful

Visa and Mastercard are payment processing companies that use their own machines to process transactions. The Solana blockchain accomplishes the same thing with 2,000 validator machines, allowing for instant settlement and an added layer of robustness. Solana Staking in Ottr can now power this new payment infrastructure!