Staking is essential to the security and efficiency of Proof of Stake (PoS) blockchain networks. Through staking, users lock up tokens in a secure smart contract, fortifying network consensus. The allure of staking lies in its rewards system, which spurs a virtuous cycle of user engagement and network strength.
With Liminal, you can stake directly from your multi-sig or MPC wallets, maintaining full custody of your funds at all times.
This article delves into the nuances of staking and how to engage with Liminal's staking offering.
What is Staking?
In PoS networks, staking allows network participants, known as validators, to lock up a specific number of native tokens as collateral.
This qualifies them to validate transactions and partake in consensus mechanisms, reinforcing network security.
In simpler words, with staking you can support a project by adding in your tokens and you get rewarded for being a participant.
Staking Terminologies to get started
Stake
Locking up a certain amount of your tokens to bolster network security and earn rewards.Unstake
Withdrawing your staked tokens; may include an unbonding period during which tokens are temporarily locked.Proof of Stake
An energy-efficient consensus mechanism where validators are chosen based on their token stake to create new blocks and validate transactions.Validator
A PoS network participant is responsible for transaction validation and block proposal. Validators are incentivised through rewards.Rewards
Additional tokens are earned for staking, serving as incentives for validators and stakers to participate and secure the network.Claim
The action of collecting your staking rewards, which are typically distributed periodically.ARR (Annual Reward Rate)
The yearly percentage yield you can anticipate from staking, helps you evaluate the profitability of staking a particular token.Activating Amount
Amount that is staked and is not actively earning rewards, after the activation period is complete the stake is activated and starts to earn rewards.Unbonding/ Locked Amount
Tokens that are temporarily inaccessible during the unbonding period post-unstaking, are in place to ensure network integrity.
Why Staking?
Participation: Help secure the network.
Stability: Stabilises the price of the crypto by locking it.
Passive Income: Let's you earn passive rewards between 5-24% ARR, depending on the network.
Low Risk, High Reward: Relatively less risky compared to de-fi and lending.
Custody First: Earn rewards, without losing custody of your funds.
Why Stake with Liminal?
Easy Staking: Easily stake from multi-sig and MPC wallets with just a few clicks, right from the Liminal Console.
Unified Dashboard: Manage staking for multiple assets like Atom, Matic, Ethereum, Solana, and Cardano, all from one simple, user-friendly dashboard.
Secure & Trustworthy: Your staking transactions are safeguarded by Liminal's robust security policies.
All-in-One Stats: Keep track of your earnings and performance metrics in one convenient location.
Partner with the Best: Stake with Figment, a leading provider in the staking ecosystem.
Supported Protocols & Rewards
Solana: 7.5%
Ethereum: 5.01%
Atom: 21%
Cardano: 3.11%
Polygon: 5.39%
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