Staking is the process of taking part in a Proof-of-Stake (PoS) network consensus by locking up cryptocurrencies. It contributes to network operations and security, and participants earn inflationary staking rewards as a return.

We support a broad range of Proof-of-Stake blockchain networks: Ethereum, Cosmos, Solana, Sui, Aptos, Polygon, and Near, for example. For the full list, please visit the Staking Page. If you are interested in staking a cryptocurrency we do not support yet, do not hesitate to reach out to us.

Proof-of-Stake (PoS) is a widely adopted consensus algorithm used by various blockchain networks, and notably Ethereum. Unlike Proof-of-Work (PoW), its renowned counterpart, PoS selects validators for block creation and verification based on their stake in the network. The stake, encompassing the validator's bond and the delegated cryptocurrencies they oversee, translates to voting power within the network. Under the PoS model, validators don't solve complex mathematical problems to validate transactions or create new blocks, as is the case with PoW. Instead, the creator of the next block is chosen via a unique combination of random selection and the proportion of network stake, or voting power, held in the network. This distinctive algorithm enables PoS to achieve distributed consensus within the blockchain network. One key advantage of Proof-of-Stake is its energy efficiency. Requiring less computing power than Proof-of-Work, PoS offers a more sustainable alternative for blockchain networks, ensuring the integrity of transaction validation and block creation in an environmentally conscious manner. Furthermore, PoS is more community oriented, as token holders can lock up their cryptocurrencies to participate to the consensus algorithm and earn inflationary rewards.

When staking your cryptocurrencies with us, or any other non-custodial validators, the ownership or custody of your digital assets doesn't change hands, as there's no need to transfer your digital assets; it's simply a delegation of voting power. With non-custodial staking services such as ours, your assets stay put in your wallet or in the native staking smart contract of the network. As a user of our services, you maintain full control of your private key and thus, you're responsible for its security. It is your private key that ensures you retain complete control over your funds. For those uncomfortable managing their private key, we've partnered with leading custody service providers who can assist in ensuring your private key remains secure. We never has access to or the ability to transfer your digital assets.

Delegating your tokens in the context of Proof-of-Stake (PoS) involves assigning the voting rights of your tokens to another account, typically a validator. This process, also referred to as staking, enables you to participate in the network consensus and earn inflation rewards, without the technical complexities of operating a validator node yourself. However, there are certain risks associated with the delegation of your cryptocurrencies. One such risk is slashing, a mechanism in some PoS protocols where a portion of a validator's stake can be 'slashed' or forfeited if they act maliciously or fail to properly validate transactions. Therefore, due diligence is crucial before selecting a delegation service to mitigate this risk. We boast a strong track record of running reliable and resilient web3 infrastructure, and also offer contractual slashing guarantees to institutional customers. Another inherent risk is market volatility. Cryptocurrencies are known for their price fluctuations, which can impact the value of your staked assets. When staking tokens, they may be locked for varying periods, from a few days to a few weeks, which means you may not be able to trade these instantly when required, unless you unstake. At the moment, we do not offer any hedging solution to guard against these market risks. It's crucial to carefully consider these risks before proceeding with token delegation. Do not hesitate to reach out to our team if you have any further questions on staking risks or want to get to know more about our slashing coverage solutions.

Delegation allows you to earn rewards on your stake without operating your own validator. By staking your tokens, you earn the protocol inflation, minus a fee charged by your chosen validator. As rewards accrue, these can also compound and generate new rewards in the future. Additionally, by staking your tokens, you get to contribute to the security and decentralization of your preferred Proof-of-Stake networks.

If you’d like to stop staking, you must undelegate your assets via the wallet or platform you previously used to stake. Each network has its own unbonding period and process. For detailed information on how to unstake, contact us.