Chinese cryptocurrency exchange Huobi announced a staking campaign for XRP and YFI. Users who stake these cryptocurrencies can earn CRV for a period of one week, after which the campaign ends.
Huobi estimates both assets to render an APY of around 8%. The news was announced in a blog post on December 11.
According to Huobi, users who stake XRP and YFI between December 11 and December 18 can earn up to 8% APY in CRV rewards. The staking campaign begins today at 20:00 UTC+8 and ends at the same time seven days later. All rewards will be distributed via CRV a week after the campaign ends.
Huobi notes that all staked XRP will additionally count towards the XRP holding snapshots, through which holders can participate in the SPARK airdrop. As a reminder, Spark is a token from the Flare Network which offers extra smart contract functionalities to XRP. To be eligible for the airdrop, XRP holders must own the asset by December 12.
All major exchanges, including Huobi, will take a snapshot at the time to track the airdrop winners. The SPARK distribution is set to be held at a later time.
In this case, Huobi might incentivize XRP holders to move their digital assets to the exchange with the staking program. By doing so, the trading platform will gather much more liquidity in the near future.
While users prefer to stake at decentralized exchanges, it is entirely possible for XRP holders to make an exception and use the chance to collect passive income in preparation for the airdrop.
Users will receive the airdrop six months from now when the SPARK mainnet is expected to launch. The protocol will distribute only 15% of the overall airdrop at the start.
DeFi lost $1B TVL since Tuesday
Currently, the XRP SPARK airdrop is the most popular topic following Bitcoin’s price movement. But as these events unfold, the DeFi market makes an important decision. Losing only a billion in value following the recent crash, market participants are now deciding whether to stay in risky DeFi protocols or to unlock their tokens.
According to data from DeFi Pulse, the market decreased from $15.26 billion to $14 billion TVL since December 8. WIthin the leaderboard, a majority of the top 20 protocols have lost 2% of their value on average. The sDEFI index is also bearish, as it reached a low last seen on November 26 after the previous crash.
Altcoins seem to lead the bearish phase as most cryptocurrencies have lost much more value compared to Bitcoin. While Bitcoin is far away from its November 26 price of $16,000, most altcoins and DeFi tokens have already reached that area.
Certain investors believe that altcoins are ‘leading the race’ in this context and that Bitcoin may fall even harder than during the previous crash. In such a case, we can expect a healthy correction of up to 30%. This would lead Bitcoin to at least $13,800, compared to the previous highs. The question is: will DeFi survive the bearish onslaught or will it experience an even worse correction?