How to Stake FUSE

What is FUSE Staking?

Fuse staking allows FUSE token holders to delegate their tokens to one or more validators on the Fuse Network, participating in network security and transaction validation. In return, they earn a share of the block rewards, distributed proportionately to the amount staked, minus a minimum validator fee of 15%. The Fuse Staking Dapp offers a user-friendly interface for validators and delegators to manage their stakes, monitor rewards, and contribute to the network's security, providing an opportunity for passive income through staking.

This article will serve as your staking guide, helping you familiarize yourself with the FUSE staking process, providing a step-by-step tutorial, tips to choose a reliable FUSE validator, and offering network-specific details such as fees and lockup periods.

How to Stake FUSE?

Follow these steps to stake FUSE via a crypto wallet.

Step 1: Prepare a supported Fuse wallet

Stake your FUSE tokens using wallets, such as MetaMask and Volt App. Install the preferred browser extension as a Fuse wallet and deposit your FUSE tokens into this wallet before continuing to the second step.

Step 2: Start staking FUSE

Navigate to the Fuse Staking Console.

Enjoy the video tutorial or follow the step-by-step guide below.

Step 3: Connect your Fuse wallet

Connect your wallet. Allow the application access, if you’re visiting the website for the first time. If you're using MetaMask the app will guide you to add and switch to Fuse Network.

Step 4: Select the Fuse validator

Select the validator from the list. Support your decision with validators included in our Staking Rewards Verified Staking Provider (VSP) Program. Some validators might have reached a maximum staking limit of 5 million FUSE. Choose the validator depending on how many FUSE tokens you want to stake.

Step 5: Delegate FUSE tokens

Enter the amount of FUSE you want to stake.

Step 6: Stake FUSE

Finalize the staking process by clicking “Stake” and confirm the transaction in your wallet.

How to Choose Fuse FUSE Validators?

Ensuring users stake their PoS tokens with dependable and high-performing validators is crucial. To facilitate this, we introduced our Staking Rewards Verified Staking Provider (VSP) Program in June 2022. This initiative involves meticulous evaluation of potential validators, assessing factors like security protocols, on-chain reliability, provider infrastructure, and ecosystem contributions.

Additionally, when choosing a validator to delegate to, consider alternative metrics:

Commission: Validators charge a commission rate, representing the percentage of rewards they retain. High rates result in lower rewards, while low rates may signify potential profitability issues for the validator. Note that commission rates can fluctuate.

Number of Users: The number of delegators can significantly influence the decision of which validator to delegate to because it impacts network security and the validator's reputation. Validators with more delegators enhance network security and are perceived as more reliable.

Staked Balance: Validators have a limit on the maximum number of tokens staked. Once the 5 million tokens limit is reached, or the user’s delegation exceeds it, the delegation to this validator won’t be possible.

Performance: Opt for validators with optimal performance metrics, including uptime. It's advisable to select validators with uptime exceeding 99% and a proven track record of avoiding slashing penalties.

How are FUSE Staking Rewards Generated?

FUSE staking rewards are generated from a combination of block rewards, inflation, and transaction fees. Projected rewards depend on the total locked supply in the network at each checkpoint, which may vary as more FUSE tokens are staked.

Block Rewards

Validators and their delegators on the Fuse Network earn block rewards in newly issued FUSE tokens with each new block, which is created every 5 seconds. This system ensures network security while rewarding participants for their activity.

Inflationary Model

The Fuse Network increases its total FUSE supply by 5% annually, providing predictable revenue for validators and delegators. This approach avoids the unpredictability of relying solely on transaction fees, which can fluctuate with network activity.

Low Transaction Fees

Generous block rewards enable Fuse Network to maintain low transaction fees, promoting wider adoption by making transactions more affordable and accessible.

You are welcome to experiment with our FUSE Staking Calculator to get a better understanding of how these metrics can influence your rewards. The APY staking calculator and FUSE rewards over time are great tools for this purpose.

FUSE Staking Details

• View the current Fuse staking APR here
• Use the Fuse Staking Calculator to estimate your rewards
• Lockup: no lockup
• Average commission rate: 15%
• Minimum amount required for staking: no minimum

Track your staking portfolio

Track the current and historical reward rates, validator count, number of unique Fuse staking wallets, and the staking ratio of the Fuse network by visiting the Fuse Asset Page. Track FUSE staking APY and delegations. Understanding these relevant data points, including FUSE stats and subnet analytics, is essential to make better staking decisions. Predict your future returns with the FUSE Staking Calculator. To learn how these data points could impact your staking rewards, please read more in the FAQ section on the Fuse Asset Page.

Users can track their staking positions on the Fuse Staking Console and monitor their total stake, predicted annual rewards, and state of the validators.

How to Unstake FUSE?

To unstake your FUSE tokens, follow the video tutorial or the steps below:

Step 1: Go to the FUSE staking platform

Navigate to the Fuse Staking Console.

Step 2: Connect your Fuse wallet

Connect the wallet you staked with previously.

Step 3: Choose the validator

Select the validator you staked with previously.

Step 4: Change the tab to Unstake

Switch the tab to Unstake.

Step 5: Specify the unstaking amount

Enter the amount of FUSE you want to unstake.

Step 6: Unstake FUSE

Finalize the unstaking process by clicking “Unstake” and confirm the transaction in your wallet.

Maximizing FUSE Staking

Fuse has a growing DeFi ecosystem with multiple reward-generating opportunities, such as liquid staking, yield farming, and liquidity provisioning. In addition, FUSE tokens can be bridged to several other networks, including Ethereum, Polygon, Arbitrum, Optimism, and BNB.

Stake More

You can increase your stake by delegating more FUSE to validators. You can decide whether to stake with the same Fuse validator or diversify your delegation across several providers.

Liquidity Staking

FUSE tokens holders can stake them to receive sFUSE, the liquid staked token of the Fuse network. This token allows you to participate in the blockchain's consensus mechanism, earning yield while maintaining liquidity.

Yield Farming

To engage in yield farming on Fuse Network, users can stake their liquidity positions to earn additional yield. This process involves depositing LP tokens into the designated farms, which pay out rewards in VOLT and FUSE tokens.

Providing Liquidity

Users can earn a portion of trading fees by adding liquidity to selected pools by depositing a pair of tokens. In return, they receive LP tokens, which represent their contribution to the pool.

Conclusion

Staking is essential to Proof-of-Stake blockchains and comes with many benefits for investors and the network, including the potential for passive income.

• Investors earn yield from token emissions and/or transaction fees.
• Stakers become eligible for airdrops as many networks prioritize granting these benefits to them.
• Staking helps to secure the network
• Staking from multiple participants helps decentralize the network
• Stakers can participate in governance, as many PoS networks allocate governance rights based on the number of tokens staked.

Congratulations! You are now not only getting the most out of your investment with compounded returns. YOU are also (in-)directly contributing to the decentralization, and the network security of Fuse and thus contributing to the long-term success of your investment! Fuse needs active stakers like you to become successful in the long term.

Now share the tutorial with your friends so they can get to start staking as well!

Lastly, don’t forget to check out the Fuse Asset Page for more insights into staking FUSE, and drop us a message if you find this tutorial useful. Happy staking!