I looked around couldn’t find a beginner’s section. I’m just a small investor who believes in this project. I’m also noticing it’s garnering the attention of some important buyers. So I bought in and love the capital appreciation of the NXM very much. However I’d like to generate income too. And have chosen projects I know like AAVE and Balancer to stake in but the warning of losing all my 29 NXM I’d someone has to be paid out is concerning. Can you point me to somewhere I can learn what someone like me should do, like a walkthru. Like the app seems to encourage staking my max amount of NXM ten times! If one fails I can lose all my NXM. Is this normal?
I’ve read about how the contracts are assessed before I can stake on them but a little more on what I can expect in terms of risk and reward. I must be rewarded more than 29 NXM, otherwise why ever risk it all ten times, no?
Thanks in advance, Lou
Hey, thanks for your interest. DeFi is indeed risky. Stake/borrow/deposit actions implies different kinds of risks and you must be aware of it before doing anything. For a better understanding of the risks involved I recommend this post by DeFi Dad : https://twitter.com/DeFi_Dad/status/1349335971632996364?s=20
Concerning Nexus, if there is a valid claim on protocol X, and you are staking on protocol X, your stake will be burnt (partially or totally).
Finally, be aware of the gas costs. DeFi requires lots of transactions and nowadays it often costs ~10$/transaction.
1 Like