10 min read

OKX Earn Program: Solid APYs, but What about the Risks?

By Steve Walters

Even in a bear market there are ways you can earn some yield in crypto. That’s why we are taking the time to dig into the Earn program at OKX. Not only is OKX a leading global crypto exchange, it also features a number of other specialized offers that are well worth considering. If you aren’t familiar with OKX as an exchange you can have a look at our full OKX review and don’t forget that you can also get a lifetime discount on fees when you sign up for an account at OKX through Coin Bureau.

👉 Sign up at OKX to receive an exclusive 40% spot trading fee discount for life!

In fact, the management at OKX was so pumped to let the world know that they are so much more than an exchange that they went through a complete brand overhaul in 2022, removing the “E” that was previously part of their “OKEX” name. That “E” stood for “Exchange” and removing it was their way of letting the world know that OKX is far more than just an exchange.

earn

With that out of the way let’s dig into the special Earn features that can help you continue making money from your crypto as we head into 2023 and beyond.

OKX Earn

Don’t just HODL. Earn.

When you think of earning platforms in crypto it’s natural to think specifically of staking. The OKX Earn platform does include staking, but it is so much more than just staking. Here are the main components you’ll find when you land in the Earn portal:

  • Staking – Stake popular coins for stable returns.
  • ETH 2.0 Staking – Get into ETH 2.0 staking with no added costs.
  • Savings – Low risk deals & flexible terms.
  • Fixed Income – Stable earnings.
  • DeFi – Earn with DeFi and 0% fees.
  • Dual Investment – Advanced investing strategies with potentially higher profits.
  • Flash Deals – Limited, high APY investments.
  • Carnival – Earn with high APY, and get free NFTs.

As you can see, there are many ways to earn yield at OKX, from safe, stable options with fairly low yields, to aggressive strategies that come with higher risks, but also with much higher rewards. Below we’ll dig deeper into just what you can expect from each of these OKX Earn products.

OKX benefits

OKX Staking

Staking is a low risk way to generate stable returns. When markets turn sour this can be an excellent way to continue to earn yield on your tokens that might otherwise sit idle. It’s also an excellent way to generate stable, safe yields during any market environment.

OKX staking is available for over 80 different tokens as of December 2022. It is necessary to lock your tokens, and lock periods range from 15 to 120 days, with the longer locks also coming with higher yields. Top tokens such as Litecoin, Ripple, Chainlink, Aave and more tend to come with lower yields of 5% or less, but many smaller projects have double digit yields of up to 70.76% at the time of writing. You can see the full list of available tokens and yields on the OKX Staking Rewards page.

ETH2.0 Staking

The move to Proof of Stake by Ethereum has opened up earning possibilities for the millions of ETH holders. However, the requirement of 32 ETH to run a full validator node is a deterrent for many smaller ETH holders. OKX gets around this requirement by pooling ETH staked in their ETH 2.0 staking protocol and requiring a far more manageable 0.1 ETH as a minimum stake.

When staking ETH with OKX you are awarded BETH tokens as a staking proof in a 1:1 ratio. Rewards are distributed daily and once the Ethereum mainnet goes live you will be able to redeem your BETH for ETH at a 1:1 ratio. The yield on staked ETH at OKX is 5.60% (at the time of writing). It’s worth noting that according to the ETH 2.0 on-chain rules, the staked asset is estimated to be locked up for 1-2 years and can’t be redeemed until the transfer feature is available in ETH 2.0.

Savings

If you’re looking for a low-risk way to earn yield on your tokens the OKX Savings program might be a good fit. The money deposited into the savings program is used to fund OKX margin loans and interest is paid out hourly. Note that 15% of the loan interest is withheld as insurance fund. Thus the hourly interest rate for lenders is loan principal*APY/365/24*0.85.

There are over 140 tokens in the savings platform, and while the majority of these come with low 1% APY, there are a handful that have double digit yields. Especially attractive is the 10% APY offered on stablecoins USDC and USDT, as well as the 365% APY being offered on OMG tokens at the time of writing.

Fixed Income

The Fixed Income offering at OKX is another low-risk way to earn yield on a handful of tokens. This investment is similar to bond issuance in the traditional financial models. The borrowers must fully collateralize the loan amounts, the term is fixed (7 to 180 days), and the interest is paid out when the “bond” reaches maturity. At the time of writing there are just four tokens in the fixed income program – USDT, BTC, ETH, and OKB. Yields range from 1% to 4.5%.

OKX Inline

DeFi at OKX

The DeFi platform at OKX allows you to earn interest by supplying funds to decentralized lending platforms, exchanges, and projects such as Compound, Aave, SushiSwap, and OpenDAO. Because these DeFi platforms can be a bit confusing for some users who are new to DeFi, having a simplified user interface is a real benefit to the average crypto holder.

This ease of access doesn’t remove the risks inherent in DeFi platforms and OKX clearly states that:

“OKX accesses third party DeFi protocols, and only provides related services such as project display and revenue distribution, and does not take responsibility for any asset losses caused by potential risks such as contract vulnerabilities, hacking incidents, or termination of business, bankruptcy, abnormal suspension or cessation of trading of third party DeFi platforms or projects.”

That said, the earnings are decent and stable for these platforms, and there are no fees involved in participating.

OKX Dual Investment

The Dual Investment product is similar to options offerings. You can use BTC, ETH, or USDT to subscribe to this product, where you are basically speculating on the future price of BTC or ETH.

In general, you choose a target price for BTC or ETH and can choose to use the target crypto to speculate or USDT. Subscribers receive a fixed APY during the term of the option, which can be as short as 15 hours and as long as 302 days.

If your target is hit and you have BTC or ETH in the subscription the crypto is sold at the target price and paid out to you in USDT. If your target is hit and you have USDT in the subscription it is used to purchase BTC or ETH at the target price and you are paid out in BTC or ETH. If the target does not get hit during the term of the subscription you receive your principle back, plus the interest set at the start at the start of the subscription.

Dual Investment

Image via OKX

In short, this is much like selling put or call options. You stand the chance to make a stable yield over the term of the subscription, but also risk having your funds converted into a different crypto/stablecoin if the target price is reached during the term of the subscription. Needless to say this is a fairly advanced product and should be used with full understanding and caution.

OKX Flash Deals

If you want to take advantage of the OKX Flash Deals, and they can be well worth it, you’ll need to keep your eye on the OKX Flash Deals page as these opportunities appear irregularly. These are high yielding opportunities, with limited investing slots and a set window for investing. If you miss the window you miss out on the chance to earn these exceptional yields.

One catch for many of these are that you are earning in a different token. As an example, a recent Flash Deal offered 110% APY with a three day term for USDT deposits. That’s an amazing yield, but your rewards are paid out in MENGO tokens. If MENGO stays flat or rises during your three day staking period you’re golden, but if the price declines your APY will also suffer. Granted with a 110% APY you’re still likely to receive an excellent return, but it is worth your consideration.

The OKX Carnival

The OKX Carnival is basically the Flash Deals, but with a little sweetener added. If you sign up for one of the Flash Deals through this page you can then go to a form, fill it out, and have the chance to be awarded a free NFT. The number of NFTs is limited to 10,000, so this is another time-sensitive opportunity you’ll need to keep on your radar.

The current Carnival at the time of writing is around the World Cup, and the NFTs all have a floor price of less than $10, but who’s to say that they won’t increase in value in the future. Plus they are free, so why not take a chance, earn a good yield, and get a free NFT.

OKX Earn: Wrapping Up

As you can see, OKX is offering a multitude of ways in which you can earn a little, or a lot, of yield on your idle crypto. Risk level varies with the type of program, so be sure you understand what you’re getting into before subscribing to any of these, particularly as a number are actually loan products that are providing margin funds or liquidity.

If you want to stay safe then stick with the Staking programs. The Fixed Income and DeFi programs add some risk to the equation, but come with stable yields. The Dual Investment, Flash Deals and Carnival carry the most risk, but also the greatest rewards. There’s something for everyone in OKX’s Earn program, so why not head over there to 👉 Sign up for an account and get a 40% discount on trading fees for life!

Telegram Inline

FAQs

Is OKX Safe?
Safety is the top consideration when choosing a crypto exchange and OKX doesn’t disappoint. They have a cold wallet, where 95% of their funds are held securely offline, along with a hot wallet that holds the other 5% and is used to satisfy deposit and withdrawal demand. In terms of risk management OKX runs an insurance fund to protect against unexpected liquidations. You’ll also enjoy full encryption of any communications, and industry leading user account safety measures. It is also worth noting that, unlike many exchanges, OKX has suffered no known hacks to date.

What is OKX Earn?
The Earn products provide a way to generate interest on your crypto through multiple investment choices. Products include Staking, Savings, and third-party DeFi services.

Are OKX and OKEx the same?
Yes, they are the same. The exchange rebranded in 2022 from OKEx to OKX as a way to highlight the fact that they are much more than just an exchange. Since the rebrand they have released Earn products, Lending products, an NFT marketplace, and a number of other ways to participate in the crypto ecosystem.

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
Steve has been writing for the financial markets for the past 7 years and during that time has developed a growing passion for cryptocurrencies.
View all posts by Steve Walters -> Best Crypto Deals ->

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