Users can now earn staking rewards and help secure the network by delegating their AVAX tokens on Avalanche.
Stake DAO, a multi-service cross chain DeFi platform that enables users to easily grow their crypto portfolio within one intuitive dashboard, is now live on Avalanche.
This expansion allows users to delegate (and stake) their AVAX on Stake DAO and immediately begin earning staking rewards. In the near future, Stake DAO will add a number of initiatives including Liquid Staking, which gives AVAX holders the ability to trade liquid, multi-purpose derivatives while earning staking rewards. Stake DAO will also create innovative yield generating strategies on Avalanche’s growing DeFi ecosystem.
“Stake DAO aims to work with the top teams in DeFi to innovate and push the boundaries of possibility — we’re tremendously excited to enter a close working relationship with Avalanche, expanding the usage case for their high-throughput smart contract platform, and bringing a host of new and exciting strategies to our users” , says Julien Bouteloup, Stake DAO’s core contributor.
How does Stake DAO work?
Stake DAO is DeFi’s one-stop shop for supercharging your crypto. With a focus on cutting-edge strategies, cross-chain interoperability, and smarter staking, Stake DAO democratizes access at scale to the market’s most competitive products and strategies. Built by some of the contributors behind Curve and other leading DeFi protocols, Stake DAO now hosts more than $150 million worth of cryptocurrency accruing value faster.
What is staking?
Staking is the process of locking up tokens on a Proof of Stake (PoS) platform to support the network’s security while receiving a reward in return. Token holders who stake are awarded extra tokens in return for the service they provide. Once the staking period ends, token holders not only keep their original tokens but also pocket extra gains by holding those tokens (aka staking). In some cases, platforms incentivize locking up tokens for a fixed period of time.
The returns vary depending on the token and the market, but they are usually higher than those you get from traditional finance institutions.
What is AVAX?
AVAX is the native token of the Avalanche platform and is used to secure the platform through staking, pay for fees, and provide a basic unit of account between the multiple subnetworks created on the Avalanche platform.
Learn more about Avalanche here.
To delegate AVAX on Stake DAO using a Ledger or Avalanche wallet, please follow the tutorials below.
How to delegate your AVAX through Stake DAO:
Before you start:
- Ensure that you are running the latest software for your wallet.
- Ensure that you have funded your wallet with at least 25 AVAX. Learn more on where to get AVAX in this link.
Step 1. Connect your wallet
Connect to Avalanche Wallet by clicking https://wallet.avax.network/ and entering your key phrase, keystore file, or connect to Ledger.
Step 2. Complete Cross Chain Transfer
Unless you already have AVAX on the P-Chain, you will need to transfer your tokens over in order to be able to stake them.
To do this, navigate to the “Earn” section and click “TRANSFER” under “Cross Chain Transfer.”
Make sure you transfer the amount you want to stake plus 0.001 AVAX, that is the fee that you will pay to do the transfer between the chains.
Enter the amount you wish to delegate to Stake DAO’s node and click “Transfer.”
Step 3. Delegate to Stake DAO
You’re now ready to delegate your AVAX!
Return to the Earn menu and select Delegate.
Select Stake DAO Validator #1 and specify the amount of AVAX you’d like to stake. This is Stake DAO’s official Avalanche node:
Node 1: NodeID-8PKikqQVFgRYLUwwNc2HHodNMyP6Tw6Qy
Node 2: NodeID-4QNnLZTYQPbZcFUoXmGoi2sWfdWFZ49aU
Select either of Stake DAO’s nodes and enter the staking period, and any reward address (if you want to receive rewards in a different address to your staking wallet address). Click “Confirm,” and finally “Submit” to approve the delegation.
Congratulations, your AVAX tokens are now delegated to our validator and will start earning rewards!
The delegation operation is signed and broadcasted to the network for confirmation. You should start receiving your first rewards after an initial period of around 14 days (please refer to the FAQ section below for further information).
FAQ
Is there any unbonding period when I stake?
There is no unbonding period, but your AVAX will be locked for the duration of the staking period, between 2 weeks — 1 year, at your discretion.
How long does it take to start earning rewards after delegating?
You receive the rewards at the end of the delegation period.
Useful Links
- The website 🔗 https://www.avax.network/ contains more information about the project.
- GitHub 🔗 https://github.com/ava-labs/
About Stake DAO
Stake DAO is DeFi’s one-stop shop for supercharging your crypto. With a focus on cutting-edge strategies, cross-chain interoperability, and smarter staking, Stake DAO democratizes access at scale to the market’s most competitive products and strategies. Built by some of the contributors behind Curve Finance and other leading DeFi protocols, Stake DAO currently hosts more than $140 million worth of cryptocurrency accruing value faster.
Website 🌐 | Twitter 🕊️ | Discord 👾 | Telegram 🐘
About Avalanche
Avalanche is the fastest smart contracts platform in the blockchain industry, as measured by time-to-finality, and has the most validators securing its activity of any proof-of-stake protocol. Avalanche is blazingly fast, low cost, and green. Any smart contract-enabled application can outperform its competition on Avalanche.
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