15.6% Returns of Bibox (BIX) Staking — Actual Example and FAQ
15.6% Returns of Bibox (BIX) Staking — Actual Example and FAQ

By liquidsteel | CryptoCoinChat | 1 Mar 2019


Disclaimer: This is NOT financial advice and should not be taken as such. Not guaranteed to be correct or continue to be correct. Do your own research.

Background

BIX is a token issued by Bibox exchange. They had recently revamped their staking model. As an experiment, I staked 500 BIX in Feb 2019 for 4 rounds. This is the breakdown of the BIX returns.

Details

I’m using 1 stake (500 BIX) locked in Bibox. I started staking from 25 Jan till 15 Feb (4 rounds). At that time, BIX was worth ~0.12 USD making my stake worth 60 USD.

How does staking work?

  • Each stake is 500 BIX. You can have multiple stakes.
  • To start staking, visit the Incentive Reward page.
  • You’ll have to lock the BIX tokens with Bibox for it to be considered for staking. You can unlock at anytime but it takes 24hours to take effect.
  • Staking rewards are claimed automatically and transferred to your BIX balance. It will be in ETH.
  • The rewards are calculated in this manner:

exchange transaction fee * 30% * the weekly average locked amount / circulating supply of BIX

where weekly average locked amount = the sum of the daily amount locked by users / 7

  • Each round lasts a week. The rewards are sent weekly on Fridays, 5pm GMT+8 (Bibox’s timezone)

Actual Returns

Based on my 1 stake, I collected over 4 weeks:

  • 0.00199 ETH for week of 25 Jan
  • 0.00163 ETH for week of 1 Feb
  • 0.00141 ETH for week of 8 Feb
  • 0.001495 ETH for week of 15 Feb

That’s a total of 0.006525 ETH. During that time ETH was around 110 USD on average, so this converts to 0.718 USD over 4 weeks.

If we extrapolate to 52 weeks, that makes a reward of 9.334 USD for a stake of 60 USD over a year, which is 15.56%. Not too bad!

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Caveats

  • The rewards will fluctuate of course, based on the volume on Bibox.
  • The tokens are locked on Bibox so you can’t withdraw to wallet (but why would you withdraw an exchange token?). There’s also the 24h waiting time before unlocking takes effect.
  • Since it’s an exchange token, as usual, it lives and dies with the exchange. So if Bibox gets hacked or has some scandal, the token will dip. That is, there is a real risk of capital loss (the flipside is true as well).
  • Lastly, keeping large amounts on an exchange (any exchange) is super risky. Read more here to understand why.

FAQ

What is Bibox?

Bibox is a centralized exchange. At pixel time, Bibox is the #15 exchange according to CoinMarketCap.

How do I start staking?

  • Go to account page
  • Navigate to BIX Incentive Reward page
  • Click on Lock
  • Fill in amount to lock, in multiples of 500 BIX.
  • Click Confirm

How do I unlock?

  • On the BIX Incentive reward page, click Unlock.

 

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