The Graph (GRT) Staking Guide

This guide will give you an overview on the Graph and how to stake your GRT tokens.

Last updated on May 5, 2022

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The Graph is an indexing protocol for querying data for networks like Ethereum and IPFS, powering many applications in both DeFi and the broader Web3 ecosystem. The mission is to bring reliable decentralized public infrastructure to the mainstream market. Anyone can build and publish open APIs, called subgraphs, that applications can query using GraphQL to retrieve blockchain data. Many Ethereum applications have already built subgraphs and use them today including: Audius, Uniswap, Opyn, ENS, DAOstack, Synthetix, Moloch and more.

To ensure economic security of The Graph Network and the integrity of data being queried, participants use Graph Token (GRT). GRT is a work token that is locked-up by Indexers, Curators and Delegators in order to provide indexing and curating services to the network. GRT is an ERC-20 token on the Ethereum blockchain, used to allocate resources in the network. Active Indexers, Curators and Delegators can earn income from the network proportional to the amount of work they perform and their GRT stake. Indexers earn indexing rewards (new issuance) and query fees, while Curators earn a portion of query fees for the subgraphs they signal on. Delegators earn a portion of income earned by the Indexer they delegate to.

 
Why should I stake my GRT?

Staking is the process of locking up a digital asset (GRT) to provide economic security for a public blockchain, therefore staking your GRT helps secure the PoS Graph & Subgraph network. Further, most PoS blockchains are initially inflationary in nature, so staking your GRT prevents you from getting inflated out of your position as you earn rewards for helping secure the network and validate transactions. Lastly, you can participate in network governance.

  • Secure the network – With GRT, you have the power to contribute to the security and governance of the Graph network through staking and voting on governance proposals.
  • Earn rewards – When you stake to an Indexer, you are contributing to the security of the network and helping queries get solved and for that are rewarded with GRT through staking rewards.
  • Vote for the future – Staking GRT 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 GRT?

As The Graph utilizes a PoS consensus mechanism, you can delegate an amount of GRT you hold to a "validator", making you the "delegator" — However, in the Graph ecosystem, Validators are called “Indexers”. Validators/Indexers on the Graph blockchain (and most other PoS blockchains) validate the network by approving transactions. The more GRT a validator holds the more powerful they are and the more "vote" they have in the network, which allows them to validate more transactions (or queries), thus earning more rewards.

By delegating your GRT, you trust the selected Indexer to be a good network participant. From the earned rewards, the Indexer gives a certain percentage (stipulated by the network) back to the delegators that have delegated (staked) their GRT to them.

That's how you earn rewards.

How much can I earn from staking my GRT?

At the time this post was published, the APY (Annual Percentage Yield) for staking GRT is 15.10%.

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

What is the minimum amount of GRT I can stake?

There is no minimum amount required to stake GRT. However, since it is an ERC20 token that runs on the Ethereum blockchain, you need to have a sufficient amount of ETH in your wallet to stake. You should always make sure to have enough ETH available to pay for network fees, as all blockchain interactions (such as sending a transaction, staking, unstaking, or interacting with other dApps) require them. Currently, there is a lot of activity on the Ethereum blockchain which makes transactions more expensive. Therefore, it’s advisable to only stake a larger amount of GRT as on a small amount the network fees may eat up all the potential rewards earned.

How do I stake my GRT?

When you stake your GRT, you are able to choose how much of your GRT you want to delegate to the validator. You can stake any amount of GRT, for which you immediately start accumulating rewards. You will not be able to use the staked GRT for anything else or sell them during the period the GRT are staked.

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

Please note: You will not need to manually claim your rewards as the Graph network automatically claims and re-stakes any rewards, thus allowing you to easily compound your earnings.

Which validator is my GRT staked to?

Currently, if you stake your GRT with Steakwallet your stake gets delegated to validators run by Figment. Figment is a reliable partner and one of the most trusted validator providers in the industry. We plan to offer more optionality in the future.

How do I unstake my GRT?

When you unstake your GRT, you can decide on the amount you want to unstake. Once you confirm the amount, your GRT will now be "unbonding" from the Validator. This process takes 28 days, during which your unstaked GRT is not earning any rewards. When you unstake your GRT you will also automatically receive all your compounded rewards.

When will I start earning rewards?

When you start staking your GRT and the delegation is confirmed, you will start earning rewards on the staked amount instantly.

How do I claim my staking rewards?

On the Graph, your rewards are automatically claimed and added to your staked balance. Therefore, your rewards auto-compound without you needing to do anything. If you wish to receive your rewards, you need to unstake your balance.

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

No. Steakwallet never charges a fee on your staking rewards.

Is GRT staking safe?

Yes, GRT staking is relatively safe and there is no slashing risk for your st. Thus, your delegated GRT cannot be destroyed. However, when you initiate your delegation, 0.5% of the amount that you delegate will be burned. This is intended to discourage changing delegations, and it’s expected that your earnings will enable you to recover from this burn fairly quickly.

However, if your indexer does not perform optimally, you will not earn fees.

There are two ways this can happen. If your Indexer fails to respond quickly or accurately to query requests, you will lose staking income opportunities. Similarly, indexers that price queries too high will not be competitive enough to be selected to do query work.

More broadly, an Indexer that does not index high-traffic subgraphs will not be an optimal earner.

 

 
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The risk of loss in cryptocurrency, including staking, can be substantial and nothing herein is intended to be a guarantee against the possibility of loss. This web page and the content contained herein are based on information which is believed to be reliable and has been obtained from sources believed to be reliable, but steakwallet makes no representation or warranty, express or implied, as to the fairness, accuracy, adequacy, reasonableness, or completeness of such information. Steakwallet cannot be responsible, in any way whatsoever, for your use of the information contained in or linked from this web page. Do not rely upon any information found on blog.steakwallet.fi or support.steakwallet.fi without independent verification.
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