How To Stake Your Bridged Tokens For Double Rewards | Easy Guide

In this article, I will explain how to stake your bridged tokens for double rewards—a method allowing you to earn extra through multi-chain DeFi participation.

At times, these tokens have access to low-fee networks and incentive programs. Staking aids in yielding higher returns owing to base pay and additional bonus rewards.

What are Bridged Tokens?

Bridged tokens are crypto assets that have been moved from one blockchain to another using a cross-chain bridge. This method allows the original token to be locked on its native chain while an equivalent token is minted on the destination chain.

DeFi applications on some networks may not support certain tokens, but with bridging, they can make use of such assets. For instance, ETH bridged to Arbitrum transforms into a wrapped version of ETH within the Arbitrum ecosystem.

Sequential cross-chain trading of assets results in the seamless flow of value between chains , enhances multi-chain liquidity, and offers more sophisticated staking, farming, or other crypto-earning options for users on different networks.

How To Stake Your Bridged Tokens For Double Rewards

Example: Staking your bridged tokens for double rewards on StarGate finance

Connect your Wallet

• Access the link https://stargate.finance
• Click on Connect Wallet (using MetaMask or any other supported wallet)
• Check if you are on the right network, for example, Ethereum, BNB Chain, Arbitrum.

Bridge Tokens to the Target Chain

• Move to either Transfer or Bridge section.
• Select:
  • From chain: e.g Ethereum
  • To chain: e.g. Arbitrum
  • Token eg USDC, USDT or ETH
• Specify the amount and approve transaction in your wallet.
• Patience is key until bridged tokens show up on target chain after some minutes.

Add Liquidity (Provide Liquidity)

• Go ahead to the pools tab
• Choose a relevant pool based on token that was bridged (USDC on Arbitrum).
• Click on “Add Liquidity”
• Set required amount and approve and confirm transaction.

You will receive Stargate LP Tokens as reward.

LP Tokens can be staked for double rewards.

Go to the Farming Tab. Find the specific pool which was supplemented with additional liquidity. Hit stake and confirm transaction

• You’re now earning:
  • Base rewards: Income received from trading fee revenue in the pool
  • Bonus rewards: STG tokens and potential additional partner bonuses (LayerZero, Chainlink)

Claim Rewards

• Access your earned rewards at any time through the Farming dashboard.
• Click on “Claim” to withdraw them.
• You have the option to unstake your LP tokens anytime unless they are locked by a special program.

Why users are increasingly Staking Bridged Tokens

More users are staking bridged tokens to maximize their earning potential and take advantage of cross-chain opportunities. Through staking, these assets can earn double rewards which include base yield as well as governance or partner tokens.

Bridging also provides access to lower fees and faster transactions on Layer 2 networks and other chains. It allows users to put dormant assets to use, engage in preliminary reward campaigns, and dive into developing DeFi ecosystems.

With more protocols incentivizing cross-chain liquidity, staking bridged tokens has turned into a passive income strategy while facilitating the rise of decentralized multichain finance.

Where to Stake for Double Rewards

Beefy Finance

Beefy Finance is a multichain yield optimizer that adds value to DeFi assets through auto-compounding vaults. Users can deposit bridged tokens or LP tokens into Beefy vaults on Arbitrum, BNB Chain, Fantom, and Avalanche.

The vaults harvest and reinvest rewards automatically, optimizing compound interest. Beefy partners with other protocols to provide double rewards, which includes base yield from liquidity provision and bonus tokens like BIFI or partner governance tokens.

For users who prefer automated yield farming on bridged assets with additional returns on investment and gas efficiency across multiple networks, Beefy’s vaults are a perfect match.

Pendle Finance

Pendle Finance lets users tokenize and trade future yield using advanced bridged, yield-bearing tokens like stETH, aUSDC, and GLP.

Pendle Finance is availabe on Ethereum and Arbitrum where it permits users to speculate or lock in returns by splitting assets into principal and yield tokens (YT and PT).

Users providing liquidity in Pendle pools earn double rewards which include the yield from the underlying asset plus PENDLE token incentives.

For LPs of bridged assets, Pendle often runs campaigns with boosted APRs. For users seeking structured yield products or higher returns while holding interest-bearing tokens on other chains, Pendle is especially useful.

LayerZero

LayerZero, like the most modern omnichain interoperability protocols, is specialized in cross-chain messaging and bridging. Numerous partner projects built on LayerZero—Radiant Capital, TapiocaDAO and Mugen for example—offer incentivized staking or lending of bridged assets across chains through double rewards systems.

These rewards generally comprise the project’s native token alongside bonus LZ tokens provided under LayerZero’s incentive scheme. Some campaigns also offer eligibility for airdrops to early participants.

Tips for Maximizing Returns

Timing entry during high APY periods

Join early to maximize returns from pools with high APY due to low liquidity in the beginning before cooling off.

Participating in limited-time incentive programs

Quickly join incentivized marketing campaigns that offer extra tokens or higher APRs for a limited time to boost earnings.

Choosing low-fee bridges

Minimize losses when transferring capital using low-fee bridges so that more tokens set aside for staking and reward payments are preserved.

Reinvesting earned rewards (compounding strategy)

Rewards should be manually or automatically reinvested to increase yields over time increasing overall returns without injecting additional capital.

Conclusion

To wrap things up, staking bridged tokens for double rewards is an excellent way to enhance your DeFi earnings while simultaneously supporting multichain ecosystems.

Users stand to gain from a combination of the base yield plus additional incentives through bonus rewards, thereby allowing optimum return maximization across networks. Use reputable sites, track incentive duration, and practice proper risk management.

Advanced strategies will enable users to turn idle assets into highly productive earning instruments with bridged token staking.

FAQ