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Songbird staking on CEX.IO
Earn SGB staking rewards automatically and generate passive cryptocurrency income just by holding crypto in your CEX.IO balance.
What is Songbird?
Songbird is the canary network of the decentralized smart contract platform called Flare. The canary network is an operational blockchain that is intended to be used for testing various features in a decentralized space before their further implementation in the main network. It means that the main priority of Songbird is to test Flare’s blockchain architecture, including two main protocols called Flare Time Series Oracle (FTSO) and F-assets. FTSO protocol provides external information to the network, while F-assets are known as a new token standard representing digital assets from other blockchains. These protocols are critical for Flare to provide stability and security within the network.
Additionally to testing Flare features, Songbird is used for testing and running Flare-based applications, especially those that utilize FTSO and F-asset protocols. The network also supports staking and minting tokens.
SGB is a native token of the Songbird network. It can be used for voting and other governance purposes within the Flare network.
Songbird Staking Explained
In the Songbird network, staking rewards are earned using the FTSO protocol. With this system, the Songbird network gets data about different trading pairs in a decentralized manner. These price estimates are provided for services built on the Songbird network and for on-chain smart contracts. Price data is provided by so-called FTSO signal providers. They submit information to the Songbird network at regular intervals and earn rewards if their estimates meet specific criteria.
Each FTSO signal provider’s price estimate has its “weight” that depends on how much vote power they have. Vote power depends on the number of tokens delegated to the signal provider. So if you want to earn rewards distributed to signal providers, you need to delegate your Songbird tokens to the signal provider. Thus, Songbird staking works similarly to delegated proof of stake (DPoS) when stakeholders outsource their work to a third party to secure the network and receive rewards in return.
Songbird rewards have become claimable by delegators every two weeks. This time constraint is governed by the Songbird network, not by FTSO signal providers or services that support Songbird staking.
It is also important to note that if you want to delegate SGB coins to FTSO signal providers, you cannot do it directly. At first, you need to wrap your SGB tokens using different services and get Wrapped Songbird (WSGB). Songbird tokens can be wrapped and unwrapped at any time but delegators need to pay the network fees to wrap or unwrap tokens.
After wrapping SGB tokens, delegators can select one or a few FTSO signal providers for token delegation. These FTSO signal providers are run by different teams across the globe and offer different conditions for delegators. Choosing the right signal provider is important because if the signal provider fails to provide correct price estimates or stops providing it for some period, then delegators will miss staking rewards.
Where can you Stake Songbird?
Songbird tokens were distributed in the autumn of 2021, and at the moment there are not many wallets and services that support SGB staking. Most services support SGB staking, allowing users to wrap/unwrap tokens and select different FTSO signal providers. If the above-mentioned principle of SGB staking sounds complicated for you, or you don’t want to manage your SGB tokens between different providers, then CEX.IO is the right choice.
On CEX.IO, you don’t need to wrap or unwrap your SGB tokens. You also don’t need to decide what FTSO signal provider to choose, evaluating their offerings for delegators and past performance. To receive crypto staking rewards on CEX.IO, you only need to store your SGB tokens on the CEX.IO balance. We will do the rest.
How to Stake Songbird on CEX.IO
When you stake with CEX.IO, you are free from the technical hassles of staking. You also don’t need a deep knowledge of SGB staking specifics to earn staking rewards. Just hold SBG tokens on your CEX.IO balance and earn staking rewards after the end of the staking period. As long as you store SGB tokens on your CEX.IO balance, you will participate in SGB staking.
On CEX.IO, one staking period equals one month, regardless of what cryptocurrency you stake. It means that you will receive staking rewards in SGB once a month. The whole process is automated. After the end of the staking period, the staking reward will be automatically distributed to your CEX.IO account.
If you don’t have SGB tokens on your CEX.IO balance but you want to start staking with CEX.IO, then sign in to your CEX.IO account and purchase SGB tokens using fiat or other cryptocurrencies. Once SGB tokens appear on your CEX.IO balance, you will automatically start participating in staking.
What is the Songbird Staking Yield on CEX.IO?
On the Staking page, you can find the so-called estimated annual yield (EAY). It shows what potential staking reward you can earn for staking crypto on CEX.IO.
Please note that there are a lot of factors that affect potential staking rewards. When it comes to Songbird staking, it includes the status of the Songbird blockchain and the performance of different FTSO signal providers. That is why the estimated annual yield may differ from one staking period to another. We try to provide users with the best possible conditions for staking, reassessing estimated annual yield and adopting blockchain network upgrades.
How to Calculate Potential SGB Staking Rewards with the Songbird Staking Calculator
With our earnings calculator, you can easily calculate what SGB staking reward you may earn with the current Songbird interest rate. You can find the earnings calculator on the Staking page and the staking dashboard. To see the potential reward, just follow these steps:
You will see what potential reward you may be able to earn for three different periods — a day, a month, and a year.
Please note that potential staking rewards are re-calculated every hour. If you add or withdraw funds from your CEX.IO balance, it will affect the reward you will earn after the end of the staking period. You will receive staking rewards even if you stored crypto for less than one staking period.
What are the Advantages of Staking Songbird with CEX.IO?
In addition, CEX.IO Staking features automated balance replenishment. Typically, you need to initiate additional actions to withdraw your staking rewards back to your initial balance. With CEX.IO Staking, we distribute staking rewards to your CEX.IO balance automatically. This means that you can potentially get more staking rewards with consecutive staking periods.
What Number of SGB Should I Store to Earn Staking Rewards on CEX.IO?
Keep in mind that you will not earn SGB staking rewards if the number of SGB tokens in your CEX.IO wallet is less than the minimum requirements for staking. You can replenish your SGB balance anytime to start participating in staking.