Proton Loan users now have a brand new way to earn interest on their LOAN: staking! This new feature creates an additional pathway to earn passive income, empowering you to grow your crypto stack by letting it work for you.
How it works
When you stake your LOAN on ProtonLoan.com, it is automatically wrapped into Staked-LOAN, or sLOAN. While staked, it will accrue interest, allowing you to vote on governance decisions for the Proton Loan ecosystem like what coins to add next. When you’re ready to unstake your crypto, the sLOAN will automatically be unwrapped and deposited back into your wallet as LOAN.
The interest you earn on your staked LOAN, also known as the APR, is variable, depending on how much LOAN you have staked, what amount of time you have staked it for (e.g., 7 days up to 4 years), and what the multiplier is (1x up to 4x). Each stake is unique, meaning that the sLOAN belongs to you and you alone, and you cannot transfer it to another user while it is staked.
When you stake your loan and choose a staking time, it’s locked into that staking contract for that amount of time – so if you stake it for 6 months, your multiplier might be 1.5x, and you can’t unstake it until those 6 months are over. If you leave it staked past those 6 months, that’s completely fine! In fact, doing so will keep that 1.5x multiplier until you unstake it. However, if you want to grab a higher multiplier, you’ll need to stake it for a longer amount of time. This incentivizes users to keep their LOAN staked, which also helps reduce the circulating supply of LOAN.
Staking your LOAN is also going to be the only way to participate in the governance decisions for Proton Loan. Once the governance dashboard is live, Proton Loan users will be able to use their sLOAN to vote for which coin to add next and other related changes. This is a powerful use case for LOAN, and when combined with the interest gained from staking, creates an incentive to own LOAN. Not only does LOAN let you earn interest, but it also lets you leave your mark on the ecosystem.
How do I get LOAN?
You can get LOAN in two ways: swapping, or through lending rewards. Anyone, at any time, can head over to ProtonSwap.com and swap one crypto for LOAN instantly and without paying gas fees. However, you can also earn LOAN by lending or borrowing cryptocurrency on ProtonLoan.com, where you are given LOAN as a reward depending on the variable interest rate of the asset you are lending.
People love Proton Loan
Since its launch less than one month ago, Proton Loan has seen tremendous growth. In just a few weeks, the total value locked (TVL) – the value of all assets in the Proton Loan ecosystem – has exploded to above $13 million. With lending contracts available for XBTC, XETH, XPR, XMT, XUSDC, and XDOGE, there’s something for everyone on Proton Loan.
How do I start using Proton Loan?
The first step is creating a free Proton account, which can be done on the WebAuth.com wallet or any Proton client. You can then deposit supported cryptos to the WebAuth.com wallet and connect your wallet to Proton Loan.
Start staking today
To start staking your Proton Loan, go to ProtonLoan.com, connect your wallet, click the Stake tab at the top of the screen, and enter the amount of LOAN that you’d like to stake. Select your staking time by dragging the slider to the date that you want your LOAN to become free to unstake; the longer you lock in your stake for, the higher the multiplier and the higher your APR is. Once everything is lined up, simply approve the transaction and start staking! Your LOAN will automatically be wrapped into sLOAN, entered into a staking contract, and begin accruing interest. Simple, straightforward, and fast!
We know you probably have lots of questions about Proton Loan, and we can’t wait for you to try it out and experience what we’ve been building. Head on over to ProtonLoan.com to try it for yourself; take the time to explore the docs, where you can find an FAQ section, a glossary, and a knowledge base. Be sure to follow Proton Loan on Twitter to learn more about this exciting new part of the Proton ecosystem.
Welcome to Proton, we’re glad you’re here.