Avalanche

Stake Avalanche with Kiln, enterprise-grade staking

Ernest Oppetit, Chief Product Officer
September 27, 2022

What is Avalanche?

Avalanche is a layer 1 protocol launched by Ava Labs in 2020. This blockchain platform is smart-contract capable and offers high-throughput, fast finality, and unprecedented decentralization. By lowering transaction cost and increasing transaction speed and consequently scalability, it is a very attractive protocol to both users and developers of blockchain technology.

Is Avalanche a Proof-of-Stake blockchain?

Avalanche is a blockchain platform that aims to address the blockchain trilemma of scalability, security and decentralization thanks to its unique Proof of Stake (PoS) mechanism.


What is staking?

In a Proof-of-Stake blockchain, Staking consists of locking native tokens to earn the right to secure a chain, and earn a yield while doing so. It has overtaken mining as the primary way to secure blockchains. 

Staking consists in locking native tokens (ie AVAX) into “Validators” to earn the right to secure a chain by proposing new blocks or attesting other validators blocks, and earn a yield while doing so.

Why should you stake your assets?

Staking generates the safest and most predictable yields in the crypto space. It’s the most natural yield feature in crypto as the value origins from the blockchain native currency inflation, which is forecastable. By staking your AVAX tokens, you help secure the network and earn rewards while doing so.

Said differently, not staking is the same as suffering the network inflation as your token share is diluted among other people staking and accumulating new tokens.

You can stake your AVAX as well as other (d)PoS cryptocurrencies to:
  • Put your treasury to work
  • Diversify and earn, while contributing to blockchains decentralization
  • Bring new opportunities to generate safe yields to your users
You stake
$100M
You get
$8.5M
/
every month

How to stake Avalanche with Kiln?

When staking AVAX you will need to have a minimum of 2,000 AVAX to get started. Delegating is far easier with a minimum of 25 AVAX necessary to allocate your stake to a validator. For this you will need to select the Validator you want to stake on and the amount of AVAX and connect your wallet:

  1. Login to the Kiln dashboard
  2. Initial Stake by selecting your Account and the amount of AVAX
  3. Connect your wallet: Avalanche, Ledger, MetaMask, …Kiln supports multiple wallets as well as WalletConnect
  4. Delegate Stake
  5. After each block your staked tokens help produce (new blocks are produced every 3 seconds) you will earn rewards

Unstaking is not possible in Avalanche.When a stake period is chosen, it cannot be modified. On the other end, short staking period does not impact compounded APY (if instantly restaked).

What are the rewards associated with staking AVAX?

Along with securing the network, there is a 9.09% APY reward on each block produced through staking AVAX with Kiln.

Protocol Card
Expected yield
%
Token
AVAX
APY
9.09%
Number of live validators
1,276
Node type:
RPC node, Validator

Why should you stake your AVAX with Kiln?

Kiln is the leading enterprise-grade staking platform, enabling institutional customers to stake AVAX, and to whitelabel AVAX staking functionality into their offering. Our platform is API-first and enables fully automated validators, rewards, data and commission management.

We are serving thousands of businesses worldwide so that everyone can securely and seamlessly stake their coins from our dashboard, a hardware wallet, a browser wallet, a B2B custodian, a crypto exchange or just their favorite investment app. Kiln makes staking AVAX easy, secure, and accessible to everyone.

  • Stake AVAX in 1 click
  • 100% rewards guarantee
  • Manage all your AVAX stakes and rewards from a single dashboard 
  • Non-custodial, work with your existing custodians AVAXutions e.g.Fireblocks
  • SOC 2 certified and Industry leading SLAs (0 penalties recorded and 99.95% effective uptime)

Looking to stake AVAX?

Get in touch with our team to discuss Prime customers advantages and unlock the full Kiln experience.

Stake Avalanche FAQ

What does Proof-of Stake mean?

 Proof-of-Stake (PoS) is a type of consensus mechanism used to validate cryptocurrency transactions. Both Bitcoin and Ethereum, the two largest blockchains, use another type of consensus named Proof-of-Work, that requires a certain amount of computing power in order to deter frivolous or malicious uses of computing power.

What is the difference between PoS and dPoS?

Both are consensus algorithms, helping to democratize participation in securing a blockchain. dPoS is an iteration of PoS combining real-time voting with a system based off of reputation to reach consensus across the blockchain. Voting power is still determined by how many tokens they have however.

When will I receive AVAX rewards?

Staking AVAX gives users rewards with every block produced (every 3 seconds) only at the end of the staking period. Currently APY is around 8.05% APY.

Does the interest compound when staking AVAX?

Rewards for staking AVAX are not automatically compounded with your current stake. You will need to manually re-delegate your stash + rewards when they are received at the end of the staking period.

What are the risks associated with staking AVAX?

There are no slashing penalties associated with staking AVAX. You can stake your coins without concern for issues related to slashing.

Is there a minimum and maximum amount to stake for Avalanche?

On Avalanche, validators must stake a minimum of 2,000 AVAX minimum to begin validating blocks. For delegators this number is far fewer and an individual can delegate as little as 25 AVAX to begin earning rewards.

Do I maintain custody of my AVAX tokens? Is AVAX staking non-custodial?

While you may self-custody your staked AVAX (ideally using a Ledger hardware wallet), you may choose a third-party custodian to control the withdrawal of your staked AVAX (i.e. Fireblocks).

What is the lockup period to stake Avalanche? When can I unstake and withdraw my AVAX?

There is no unbonding possible. To be completed

How rewards and penalties work?

There is no penalty. If your validator has 100% uptime or 80% uptime, you’ll receive the same reward.

What is the average block time on Avalanche?

The average block time on Avalanche is ~ 3 sec.

What are the specificities of an Avalanche validator?

To become an Avalanche validator, you will need to have a wallet that can hold your AVAX. There is a minimum of 2,000 AVAX minimum to validate blocks on the Avalanche network. To receive rewards, validators must retain their stake for a minimum of two weeks and can only stake consistently for up to one year before having to re-stake.

Where can I learn more about Avalanche?

There are many existing resources but we invite you to visit the Avalanche website and to check our latest articles on our blog.