The information provided on this page is for educational purposes only and is not intended as investment advice. We may receive compensation from our partners if you visit their website. Read our disclaimer to learn how we make money.
Axie Infinity Shards (AXS) is one of the most popular staking coins for long-term investors to make a profit or re-use back in the ecosystem. There are several benefits to staking AXS beyond earning rewards that this article will explore. In addition, for new owners of the token, we will list and compare the best places to stake AXS, its benefits, how much can be earned and include a full tutorial on how to stake Axie Infinity.
Best Places to Stake Axie Infinity in 2023
- Binance - Overall Best Place to Stake Axie Infinity
- Ronin Wallet - Native Blockchain Wallet for Staking
Centralized cryptocurrency exchanges that offer to stake AXS are suited for beginners as there is a lower barrier to entry in terms of knowledge and expertise. These platforms are simple to use and remove the need to find a suitable validator or use the native wallet.
Where to Stake Axie Infinity (AXS) - Reviewed
Below is a detailed review of the best methods to stake Axie Infinity while considering the best staking offers and rewards.
|Platform||Assets Staking Products||Minimum Deposit||Staking Fees||Lock-Up Period|
|Binance||Multiple||0.01 AXS||None||30 to 120 days|
|Ronin Wallet||AXS token only||1 AXS||Varies||None|
Binance is our top pick for where to stake AXS tokens. The benefit of using the world's largest cryptocurrency exchange is that the token can be bought, traded, staked and sold on the same platform. Binance is renowned for its low trading fees, deep liquidity and wide selection of crypto offerings and earn features. Binance offers one of the most comprehensive staking platforms in the crypto space. The yield-generating service allows users to earn staking rewards from hundreds of projects, including the Axie Infinity Shards (AXS).
Binance offers a locked staking option with a maximum duration of 90 days. The Locked staking comes with an even more comprehensive reward setting. Here, the minimum holding period is 30 days and the maximum is 90 days. The minimum deposit is set at 0.001 AXS and the maximum pegged at 1000 AXS for the monthly locked plan.
This staking offering allows users to generate as much as 63.87% APY in staking rewards. The next option is the 90 days which has a high yield of 104.62% APY for the staking of 2 AXS only. However, there are often limited opportunities to stake which sell out fast and token holders can't claim their rewards daily and restake them. The Binance platform is notoriously difficult to navigate. While the platform makes up for these with a rich resource section, the platform can be quite confusing for a first-time crypto user.
Some of the benefits of AXS staking on Binance is the zero fees for staking and unstaking. There is also another option to earn rewards on AXS by investing the funds in a flexible savings account to earn interest. In short, Binance is still one of the best crypto exchanges where users can stake AXS tokens without needing to use a secondary platform and offers sizable returns on investment (ROI).
- All-in-one platform to buy and stake AXS tokens
- Suitable for beginners that don't need to have multiple wallets to stake AXS
- Reasonable staking APY rewards for Axie Infinity
- No staking fees or commissions
- Binance can be a little difficult to navigate at first
- Can't restake daily AXS rewards
- Limited opportunities to participate in AXS staking pool
- Lock up period between 30 and 120 days
2. Ronin Wallet
Ronin Wallet is the official Axie Infinity wallet that is a good option for those who are searching for an alternative way to stake AXS aside from a crypto exchange. Operating as a sidechain on the Ethereum network, Ronin was launched to cut down on the transaction load on the foremost smart contract network. The blockchain offers lower transaction fees and high scalability for users.
Ronin Wallet allows users to interact with the Axie Infinity ecosystem using either a web browser extension or a mobile download of the software on Android and iOS devices. The platform is intuitive and user-friendly and offers an uncluttered means of directly staking your AXS tokens. The staking reward is currently set at 68% APY on the Ronin Wallet. Unlike the Binance app, Ronin does not have a lock-up period. Investors can also claim and restake the daily rewards, making this app more flexible than the Binance app.
Using the Ronin Wallet comes with transaction fees usually measured in Gwei. There is no static figure as the fee depends on the transaction volume on the network per time. Additionally, Ronin offers the option of staking with a hardware wallet like Ledger Nano. This requires users to connect their Ledger hardware using the 'Live' option to stake and claim staking rewards.
Besides staking AXS, users can leverage the Ronin Wallet to stake NFTs or ERC-721 tokens. These are mainly virtual plots of land that generate daily AXS rewards in the user’s Ronin wallet address. Moreover, in terms of security, Ronin is a non-custodial wallet. This means AXS owners are responsible for the security of their assets which is a more secure way to store AXS tokens than using an exchange like Binance. Overall, Ronin Wallet is a safe way to stake AXS tokens and is suitable for experienced investors of Axie Infinity.
- AXS native staking platform
- Non-custodial wallet has excellent security
- Well-suited for dedicated Axie Infinity investors
- Does not have lock up periods
- Can stake AXS via a Ledger hardware wallet
- There are staking fees involved
- Does not offer other features for investors to use
- Takes longer to transfer AXS tokens and begin staking
What is AXS?
Axie Infinity is a blockchain game developed by Sky Mavis in 2018. The project, which operates on Ethereum and the Ronin sidechain, borrows inspiration from the hyper-successful anime battle game, Pokemon. Axie Infinity has been one of the shining lights in the blockchain industry as it has been able to properly harness the play-to-earn (P2E) gaming components as players retain ownership of their in-game assets or Axies. The platform also affords players to exchange their Axie Infinity tokens for real fiat on the Axie Marketplace.
The blockchain battle game is powered by the Axie Infinity Shards (AXS), which serve as its governance, staking, and speculative digital asset. Aside from this, Axie Infinity uses Smooth Love Potion (SLP), which is earned from gameplay and can then be traded in the NFT marketplace for real fiat. AXS has remained the focal point of the Axie Infinity ecosystem due to its multiple use cases, and the digital asset has grown in value in line with the overall game. Players can earn the token from playing the game, participating in governance and staking their tokens to earn more of the asset.
The AXS token is expected to be fully unlocked by 2026. So far, 11% of the digital asset has been publicly sold, while 20% have been assigned for their P2E feature. Private investors hold 4% of the digital asset, while 29% has been assigned for staking rewards. The digital asset has been one of the stand-out coins in the last year as it surged to an all-time high (ATH) of $165.37 at the height of the crypto boom in November 2021, placing it among the most valuable crypto assets by trading volume. However, the broader market downtrend has recently seen the utility token plummet to the $19 range at the time of writing.
How Does Staking Axie Infinity Work?
Staking on Axie Infinity is like owning shares in the Axie Infinity ecosystem. In return for pledging and staking their AXS tokens to secure the network, investors will be given newly minted tokens. At present time, this is currently set at 69% APY. Aside from earning tokens, stakers can participate in decision-making in the Axie Infinity community and in the governance process of the protocol through the community treasury.
Despite Axie Infinity running primarily on the Ethereum network, its pivot to a gameplay-specific Ronin blockchain has seen it transition to a PoS protocol. This makes it eligible for staking activities.
How Much Can You Earn Staking Axie Infinity?
The amount investors can earn from staking their AXS tokens is usually updated monthly. However, at the time of writing the Ronin Wallet pays out approximately 69% APY per year. Meanwhile, the amount of newly minted coins investors can earn largely depends on their asset portfolio.
For instance, an investor who stakes 1,000 AXS coins at a 69% APY would likely earn over 600 coins in a given year. Converted to fiat in a bullish season, this could be between $200,000 to $500,000 in staking returns for users. The potential for these coins to rise during a staking period has seen the industry record sky-high growth.
What Can I Do With Axie Infinity Staking Rewards?
Axie Infinity staking rewards have several utilities. One of the most important is the voting rights attached. This allows users to partake in the decision-making process concerning the spending of the Community Treasury funds. Another utility is the ability to restake AXS token rewards on the network. This increases an investor's return on investment (ROI) through compounding. This is only possible for investors who stake their coins in the Ronin wallet. Also, AXS holders can use their staking rewards to develop their Axies for more battles in the game.
Advantages and Disadvantages of Staking Axie Infinity
Crypto staking has grown into a major sub-sector in the crypto space. Based on a report, the PoS staking ecosystem recorded a 1,550% jump in investment inflow between 2020 and 2021. Despite the market downtrend, crypto staking is seeing remarkable growth still. Axie Infinity staking ranks as one of the most in-demand coins due to the blockchain game’s popularity and user base. So what are the advantages of locking AXS tokens and the possible demerits?
- Secures the network. Staking prevents a 51% attack. For a PoS network, a group of individuals must own 51% of all the staked coins to attack the network. Since staking involves locking up coins to mine, any attacker who perpetrates a 51% attack would also lose all of their funds.
- Earn passive income on AXS. For locking up funds, users are rewarded with newly minted coins. This can become a viable way of generating passive income on digital assets instead of letting them stay idle.
- Governance. Another key benefit is the voting rights investors enjoy when they stake. AXS holders have a say in the operations of the Axie Infinity Community Treasury. They can decide on needed updates or the addition of new gameplays by voting.
- No equipment is needed. Verifying transactions on a Proof-of-Work (PoW) protocol often requires using specialized hardware and technical expertise. Staking eliminates this and offers a beginner-friendly means to secure and validate transactions without equipment.
- Eco-friendly. AXS staking is also environmentally sustainable as the Ronin blockchain needs less energy to validate transactions. This makes it far more cost-efficient than a PoW network.
- Higher scalability. PoS protocols like the Ronin blockchain often have a higher throughput as they can validate more transactions in seconds. This is all due to the use of staking. Instead of everyone vying for the block rewards, a select number of users can stake their coins to verify transactions, freeing up a large number of the network’s resources for validating transactions.
- Cryptos are volatile. Digital assets do not have real-world items backing them since they are virtual lines of code. Given this, they are more prone to price volatility or fluctuations. The value of an investor's AXS may significantly reduce during the lock-up period in a market downtrend.
- Assets can be slashed. To ensure the right attitudes among validators, a slashing penalty is instituted for mistakes made or poor internet connections. To avoid losing a significant part of their funds, investors are advised to carry out research to select proven validators.
- Tokens can be lost. The crypto space is still evolving and there are several staking risks to be aware of. There have been cases of security breaches that wiped off millions of investors' funds. Although staking is considered a secure means of keeping the network secure, it is not 100% a safe way of earning rewards as investors' funds are locked up for a period of time. A platform breach could directly impact the number of rewards an investor receives, and the lock-up period will not allow the investor to initiate a withdrawal in that period.
How To Stake Axie Infinity - Full Guide
While Ronin Wallet is a great place to stake AXS, our top pick is the Binance exchange. The Bitcoin trading platform presents a more beginner-friendly staking experience and offers zero fees. Also, investors earn more on Binance than on the Ronin Network. Since Binance offers multiple staking options, we will work with its three-month locked staking offering. To get started, follow these detailed steps.
1. Create an account with Binance
To get started, create an individual trading account on Binance. Visit the Binance website and tap on ‘Register Now’. Select ‘Individual Account’ and provide an email address, mobile number, and password. Users will be required to verify their email and mobile number. Once done, turn on two-factor authentication to secure the account from hacks. An optional step is to download the Binance App which can be used to stake AXS.
2. Complete ID verification process
Binance requires new users to complete the necessary know-your-customer (KYC) process due to its regulated status. Tap the profile icon and select ‘Verify’. Then, upload a copy of a driver’s license or official passport. A face verification exercise will also be required to complete the process. If you're wondering how long is the Binance verification process to be approved, read this article.
3. Buy or deposit Axie Infinity
Next, buy Axie Infinity on Binance which offers multiple options, including bank wire transfers, credit/debit cards, and PayPal. Search for the asset, AXS, and use the USDT/BUSD/USDC stablecoins to buy them on the Spot trading platform.
However, investors who own AXS in another crypto wallet can transfer it to their Binance trading account. Tap on the 'Wallet' icon at the bottom of the screen and select the 'Deposit' option. Then, select 'Crypto' and type 'AXS' into the search bar and select the network to send the asset through to copy the accompanying wallet address. Once the deposit is executed, the tokens would be deposited directly into the investor's ‘Spot Wallet’ after all confirmations have been made.
4. Stake AXS tokens
Finally, head to the Binance Earn platform. Swipe left on the ‘Wallet’ platform and tap on ‘Earn’. Then, click on ‘Search Coin’ to open up the list of assets available. Type ‘AXS’ in the search bar if it is not readily visible and select the asset from the search results. Then, insert the number of AXS tokens to be staked, click on the terms and conditions at the bottom and click on ‘Confirm’ to complete the process. Tap on Earn to view the AXS staking dashboard.
Frequently Asked Questions
Axie Infinity still commands one of the largest shares in the blockchain gaming industry. The protocol has over 1.5 million daily users who interact with the game. AXS staking allows users to earn passive income from a high-value asset.
Users can earn between 69% and 104.9% on their staked AXS tokens. Coupled with the zero fees and the need for no equipment, AXS staking is a lucrative means of generating profit.
Investors can easily stake their AXS token by signing up on the Binance platform. The process is quite easy and seamless. Once the user verifies their accounts, they can stake the AXS from their spot wallet on any of the preferred duration contracts.
Crypto platforms allow their users to stake their cryptos mostly to ensure the sustainability of their network. However, learning how to stake crypto is a great decision as it has become a viable way for investors to generate passive income from idle funds. Axie Infinity staking is one of the best ways to obtain more AXS tokens. We recommend that investors use Binance to stake their AXS coins because of its ease of use, high APYs and zero staking fees.