Staking is the process by which a token holder (such as someone who purchased SOL tokens on an exchange) assigns some or all of their tokens to a particular validator or validators, which helps increase those validators’ voting weight. Assigning your tokens to add to a validator’s stake-weight is known as “delegating” your tokens. Delegating your tokens to a validator does NOT give the validator ownership or control over your tokens. At all times, you still control all your staked tokens that you may have chosen to delegate. By staking tokens with a validator or validators, the token holder indicates a degree of trust in the validator they chose to delegate to. As validators amass larger amounts of stake delegations from different token holders, this acts as “proof” to the network that the validator’s consensus votes are trustworthy, and their votes are therefore weighted proportionally to the amount of stake the validator has attracted. By weighing the collective votes from all validators against the proportion of stake that has been delegated to them, the network reaches consensus by this Proof of Stake.

In an open and decentralized network, anyone can run a validator if they choose. A malicious validator or other bad actor could attempt to attack the network or to submit incorrect or fraudulent transactions for their own gain. Because of the Proof-of-Stake consensus mechanism described above, a single entity acting alone in this fraudulent manner would need to attract some amount of stake before any of their proposed activities would be weighed in the consensus vote. As more token holders choose to stake tokens to different validators across the network, and the total amount of stake on the network increases, it becomes increasingly difficult for even a coordinated and well-funded attacker to amass enough stake to single-handedly alter the outcome of a consensus vote for their own benefit. In short, the more stake that is delegated to many different validators across the network, the more safe and secure the network becomes for all of its users. Additionally, token holders who choose to stake their tokens and help secure the network in doing so, are eligible to receive staking rewards once they have delegated their tokens to one or more validators.

As a staker, you become a liquidity provider as you are providing a platform with available crypto funds, and therefore liquidity. In the case of a drop in your staked token's value, you could be at risk of losing. At SkyeStake we ensure measurable dividends between stable and crypto assets reducing risks as markets are volatile. This allows ours users to gain with minimal risk.

SkyeStake is not a custodian or will hold any funds from our users, all Funds will be maintained and kept by the user in their own wallets. SkyeStake will never ask for any funds to be transferred to our wallets that do not belong to SkyeStake..