Hi total newbie. Thinking of investing in CFG on coinex which has staking but not CFG

Hello, I’m retired, a crypto enthusiast who is just trying to protect my retirement. There are a number of exchanges that are selling CFG. I belong to one called Coinex . I became interested from a friend on twitter that said I should check out Centrifuge. So today, I did and I think it has a lot of potential except there isn’t a pool yet (on centrifuge) that stakes your CFG governance token, which is curious. I see that I have to jump through hoops just to stake CFG, but why again? If I buy your tokens CFG on Coinex and they offer staking, why isn’t CFG in a staking pool there. These are just some of the questions that I have.

Hi @freegold,

First of all, thank you for your interest in Centrifuge. Staking is when you delegate your tokens to a validator in order to secure the network. A few months ago, Centrifuge became a parachain and the security of parachains is provided by the Relay Chain (Polkadot and Kusama) and their validators, so there is no longer a need for staking.

There are some other utilities of the CFG token that are being discussed (like staking in pools as you mention) and you can read about them here. The first pools have already started the application process on Centrifuge (before the pools were launched on Tinlake, which is on the Ethereum network) so keep an eye on announcements from Centrifuge regarding staking in pools the coming months.

I actually didn’t know that you could stake CFG on exchanges, and if it is possible, it is actually a bit misleading to call it staking as you don’t secure the network by doing so - when exchanges offer you passive income on your crypto, you are most like providing liquidity.

Hopefully that answered some of your questions mate.

1 Like