What is Sphere Finance DeFi and what is its SPHERE token all about?

Highlights

• Sphere Finance is a DeFi participant that claims high returns to users through autostaking
• Staking, as some enthusiasts put it, is a way of making some passive income from crypto assets
• SPHERE token has gained lately, but since it is very new, caution must be exercised

With the crypto space evolving, the focus seems to be shifting from traditional buying and selling of assets to “passive income”. The term passive income is commonly associated with decentralized finance or DeFi.

Recently, the hacking of Ronin Network, which powers the popular blockchain-based game Axie Infinity, made the news. however, despite a slew of hacks of DeFi protocols, the sector is gaining traction. It claims to allow crypto holders to earn revenue by staking their tokens. In networks based on the proof-of-stake consensus method, staking powers the validation of transactions.

Now, a new cryptocurrency, Sphere Finance, is claiming to provide a “market-fixed” annual percentage yield (APY) through autostaking. Let’s know more.

What is Sphere Finance cryptocurrency?

The project claims to become the S&P 500 index of the DeFi space, something that has yet to be proven. For now, it states its primary function as enabling autostaking of governance tokens. The project would, it says, focus on holding governance tokens that use the Polygon blockchain network. It also talks about a daily return on investment (ROI).

Sphere Finance is claiming that its users can become “proxy” holders of various governance tokens. By achieving this, the users may play a key role in the voting process and governance of those projects. In a bid to attract enthusiasts, Sphere Finance is highlighting payouts every 30 minutes from staking.

Also read: APE and WAVES: 2 cryptos that made news in Q1 2022

Sphere Finance crypto (SPHERE)

SPHERE token is what the project says would be used to hold governance tokens of other projects. The token is very new, and hence nothing can be predicted about its price in the near term. Separately, the project states it would use the initial launch funds to acquire governance tokens, something that has yet to be undertaken.

Also read: What is Ankr protocol and its native ANKR crypto?

SPHERE crypto price

The project mentions SPHERE crypto's availability on QuickSwap, a decentralized exchange (DEX). The token recently touched the price of US$0.05, according to CoinMarketCap.

Its price was nearly US$0.006 on March 21, 2022, and it has since been on a rise. But since all cryptos are volatile, SPHERE token price prediction can be very speculative.

Data provided by CoinMarketCap.com

Bottom line

DeFi is a popular segment within the wider cryptocurrency space, and so is the staking of tokens. But this does not mean it is absolutely safe. The recent hacking of Ronin Network shines a light on how the field is vulnerable to attacks and losing cryptos to hackers.

Sphere Finance is a fairly new entrant, and since it is claiming high returns to users through the autostaking feature, being cautious is recommended.

The network's token, SPHERE, has appreciated over the past nearly 10 days. However, the token has a long road ahead before it can make a place for itself in the large-cap cryptos category dominated by BTC and ETH.

Also read: RAD crypto rises: Can Radicle be ‘decentralized’ GitHub?

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