Waves Staking: A Quick and Easy Tutorial

What is WAVES Staking?

WAVES staking allows token holders to lease their assets to generators - nodes with a required generating balance that can participate in block generation and receive rewards. Delegators boost the node's likelihood of earning rewards, which are then shared with the lessors. The tokens stay in the lessor's account and the lease can be canceled at any time, maintaining security. This system enables users to contribute to block generation without needing to run their own nodes.

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

How to Stake WAVES?

Follow these steps to stake WAVES via a crypto wallet:

Step 1: Prepare a supported Waves wallet or sign up

You can stake WAVES tokens via wallets, such as Keeper Wallet or Ledger. Install the browser extension or Ledger as your Waves wallet and deposit your WAVES tokens into it before proceeding to the next step. Alternatively you can sign up on WX Network.

Step 2: Start staking WAVES

Visit the WX Network to begin staking.

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

Step 3: Open investment products

Navigate to the “Investments” tab and select “WAVES Staking”.

Step 4: Connect your Waves wallet

Connect your wallet. Allow the application access and sign in, if you’re visiting the website for the first time. The wallet will guide you to add and switch to a supported Waves network.

Step 5: Open the staking dashboard

Click the “Stake” button to input staking details.

Step 6: Choose the Waves node

Select the Waves generating node. Choose a preferred node, supporting your decision with providers included in our Staking Rewards Verified Staking Provider (VSP) Program.

Step 7: Enter the WAVES tokens amount

Input the number of WAVES tokens you want to stake.

Step 8: Stake WAVES

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

How to Choose Waves Generators?

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.

WAVES Staking Pools are categorized into two types: Verified Pools and Private Pools. Verified Pools are those listed to simplify research for users, but their operation is not guaranteed or influenced by WX Network. Any staking pool can apply for verification. Private Pools include all other staking pools that haven't applied for verification; these are not displayed in the application, but transactions to these pools will appear in the user's active staking list if WAVES are staked.

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

Commission: Generating nodes charge fees. A high commission rate reduces your rewards, while a low rate may impact the validator's profitability and long-term viability.

Number of Users: The number of lessors can influence your choice of generator. More lessors typically reflect positively on the validator's reputation.

Performance: Select validators with the highest possible uptime, ideally 99% or above, and a consistent track record.

Generator Staked Balance: Generators with a high amount of staked tokens are able to validate more blocks, thus earning more rewards. They also have more at stake, providing a strong incentive to maintain their services.

Network Share: Delegating to the most popular validators can increase centralization risks. Conversely, smaller validators may face profitability challenges, potentially leading to service discontinuation. Supporting smaller validators can help decentralize the network, but requires regular monitoring to ensure they remain active.

How are WAVES Staking Rewards Generated?

Staking rewards in the Waves are generated through multiple mechanisms. For each new block added to the Waves blockchain, the generating account receives various rewards in WAVES:

Block Rewards: 6 WAVES are generated with each new block, and the generator receives 2. The remaining WAVES are distributed to the Waves DAO and the XTN buy-back smart contract.

Transaction Fees: The generator receives 40% of the transaction fees from the current block and 60% from the previous block, as per the Waves-NG protocol. If transaction fees are specified in a sponsored asset, the equivalent amount in WAVES is credited from the sponsor's account.

DAO Rewards: Additional rewards are generated through the Waves DAO LP token (WAVESDLP), which can be claimed via Waves DAO or the claim function on a smart contract.

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

WAVES Staking Details

• View the current Waves staking APR here
• Use the WAVES Staking Calculator to estimate your rewards
• Lockup: no lockup
• Average commission rate: 2.5%
• Minimum amount required for staking: no minimum

Track your staking portfolio

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

How to Undelegate WAVES?

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

Step 1: Cancel WAVES Staking

Visit the WX Network to view your staking positions.

Step 2: Open investment products

Navigate to the “Investments” tab and select “WAVES Staking”.

Step 3: Connect your Waves wallet or sign in

Connect your Waves wallet you have staked with previously or log in to your account.

Step 4: Manage your staking positions

Navigate to the “Active” tab to view your staked positions.

Step 5: Unstake WAVES

In the “Active” tab find the desired staking pool and expand the list of the active staking transactions. Find the desired transaction and click “Cancel”.

Maximizing WAVES Staking

Waves ecosystem introduces additional reward streams for token holders.

Stake More

You can increase your stake by leasing more WAVES to generators. You can decide whether to stake in the same Waves Pools or diversify your delegation across several generators.

Liquid Staking

WAVES token holders can swap their assets for a liquid sWAVES and benefit from staking rewards while retaining flexibility. Users can hold sWAVES tokens in their wallets, transfer them to other accounts, trade sWAVES on decentralized exchanges, and provide liquidity to swap or lending protocols to earn additional interest income.

Where to store WAVES?

Looking for a crypto wallet? Exodus Wallet has an intuitive interface, a built-in exchange feature and supports over 200+ assets. Manage your cryptocurrency portfolio securely and with ease using Exodus Wallet! Visit their website to learn more and download today.

Conclusion

Staking is a cornerstone of Proof-of-Stake blockchains, offering numerous benefits for both investors and the network. By participating, you unlock the potential for passive income. 

• Investors earn rewards through token emissions and transaction fees.
• Stakers may become eligible for exclusive airdrops, often prioritized for active network participants.
• Staking involvement helps secure and decentralize the network, ensuring its robustness and resilience.
• Staking grants you governance rights, allowing you to influence key decisions based on the number of tokens you stake.

Congratulations on taking this significant step! You're not only maximizing your investment returns but also playing a role in decentralizing and securing the Waves. Your active participation is vital for the long-term success of both your investment and the network itself.

Don't keep this opportunity to yourself! Share this tutorial with your friends and help them start staking too! Together, we can build a stronger, more decentralized future for the Waves.

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