Polygon (stMATIC) Liquid Staking Guide

This guide will give you an overview on Solana network and how to liquid stake your SOL tokens.

Last updated on May 14, 2022

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MATIC is the token for Polygon, which is a scaling solution made for developers to make Ethereum more accessible - also known as “Ethereum’s internet of blockchains”.

Polygon has become one of the most valuable secondary layer built on Ethereum because it provides faster transaction rates in low cost as a solution to Ethereum’s expensive and slow transactions. This is because Polygon processes many of its transactions on its proof-of-stake blockchain, allowing it to process up to 65,000 transactions per second.

MATIC is used to govern and secure the Polygon network and to exchange payments. Polygon’s PoS ecosystem works by rewarding stakers with MATIC.

 

Learn more about staking MATIC.

 
Why should I stake my MATIC?

Staking is the process of locking up a digital asset to provide economic security for a public blockchain, therefore staking your MATIC helps secure the PoS Ethereum network. Furthermore, you can participate in the network’s governance.

  • Secure the network – With MATICH, you have the power to contribute to the security and governance of Polygon through staking and voting on governance proposals.
  • Earn rewards – When you stake to a validator, you are contributing to the security of the network and are rewarded with MATIC through staking rewards.
  • Vote for the future – Staking MATIC allows you to vote on governance proposals and contribute to making decisions on the future and direction of the network.
What happens when I stake my MATIC?

As Polygon utilizes a PoS consensus mechanism, you can participate in securing the network by becoming a validator. Validators on the Polygon blockchain (and most other PoS blockchains) validate the network by approving transactions. The more MATIC a validator holds the more powerful they are and the more "vote" the have in the network, which allows them to validate more transactions, thus earning more rewards.

However, alternatives like Lido allow you to delegate your MATIC to a pool of respected validators and with that earn rewards. From the earned rewards, the validator pool gives a certain percentage (stipulated by the network) back to the delegators (in this case holders of stMATIC) that have delegated (staked) their MATIC to them via Lido & Steakwallet.

When using Lido, users receive secure staking rewards right away, allowing for participation in the securing of Polygon without the associated risks and downside potential.

How much can I earn from staking my MATIC?

At the time this post was published, the APY (Annual Percentage Yield) for staking MATIC is 8.68%.

For the most up-to-date rewards rate, you can check out the Steakwallet app.

What is the minimum amount of MATIC I can stake?

There is no limit to liquid staking MATIC via Lido. But, make sure to provision ~0.05 ETH for transaction fees.

How do I stake my MATIC?

When you stake your MATIC, you are able to choose how much you want to delegate to the Lido validator pool. You can stake any amount of MATIC, for which you receive stMATIC tokens, representing your staked MATIC. Your stMATIC balance is updated every few days automatically to reflect your MATIC staking rewards. Your stMATIC balances can be used like regular MATIC to earn yields and lending rewards. This is different from traditional staking where your assets are locked up and can’t be used while earning staking rewards.

Make sure you have enough MATIC in your wallet to pay for network transaction fees.

What is staked MATIC (stMATIC)?

stMATIC is a token that represents staked MATIC in Lido. Lido uses a share-pool approach to determine the amount of stMATIC exchanged for MATIC that staked through Lido. stMATIC tokens can be used as one would use MATIC, allowing you to earn MATIC staking rewards whilst benefiting from, among other things, yields across decentralized finance products, such as borrowing or lending.

Which validator is my MATIC staked to?

Currently, if you stake your MATIC with Steakwallet your stake gets delegated to a pool of validators selected by the Lido DAO, like Shard Labs.

How do I unstake my MATIC?

MATIC can be withdrawn at any time by unstaking your stMATIC, but there is a 9 day unbonding period. Note: During this period, your MATIC still can still be slashed if your validator commits any misbehaviour before the unbonding period started.

When will I start earning rewards?

You will start earning rewards immediately after liquid staking your MATIC.

How do I claim my staking rewards?

There is no manual claiming required. Your rewards are automatically credited to your deposit.

Does Steakwallet take a cut of my rewards or charge a fee?

No. Steakwallet never charges a fee on your staking rewards. However, Lido applies a 10% fee on a user’s staking rewards. This fee is split between node operators, the DAO, and a coverage fund and is similar to validators on other networks taking a commission.

Is MATIC staking safe?

Given that you maintain custody of your assets (as Steakwallet is non-custodial), you always remain in full control.

However, delegators myst be aware that a slashing event could occur if validators fail to validate transactions.

 
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