Stake Avalanche with Kiln, enterprise-grade staking
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?
Proof-of-Stake (PoS) relies on validators to propose new blocks or attest other validator’s blocks. This is done through locking up native tokens to earn a reward for securing the chain. PoS has taken over as the most popular consensus algorithm from mining in newer blockchain systems.
By locking a protocol’s native tokens (ie AVAX) to give “validators” the right to secure a chain. Validators propose new blocks or attest other validators’ blocks, gaining rewards for doing so.
Why should you stake your assets?
Staking is a great way to earn rewards while benefiting the protocol you choose to stake on. It derives its value from the natural inflation rate of the blockchain’s native currency and is therefore a built-in form of reward that is easily calculated in advance.
By staking AVAX you are earning rewards while helping to secure the network and keep it decentralized. Conversely, by not staking your AVAX you are suffering from network inflation without benefiting the system nor making returns on your holdings.
- Put your treasury to work
- Diversify and earn, while contributing to blockchains decentralization
- Bring new opportunities to generate safe yields to your users
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:
- Login to the Kiln dashboard
- Initial Stake by selecting your Account and the amount of AVAX
- Connect your wallet: Avalanche, Ledger, MetaMask, …Kiln supports multiple wallets as well as WalletConnect
- Delegate Stake
- 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 8.62% APY* reward on each block produced through staking AVAX with Kiln.
Why should you stake your AVAX with Kiln?
Kiln has a strong record of staking PoS cryptocurrencies such as AVAX and Ethereum. Kiln is considered a trusted name in blockchain protocol validation and is the leading enterprise-grade staking platform. The Kiln platform enables institutional customers to stake Avalanche, and to whitelabel Avalanche staking functionality into their offering.
- 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?
Fill out the form and we'll be in touch as soon as possible.
Stake Avalanche FAQ
What does Proof-of Stake mean?
Proof-of-Stake (PoS) is a type of consensus mechanism used to validate cryptocurrency transactions. Through PoS, validators can contribute to the block production of a chain while keeping environmental concerns to a minimum, which is becoming an increasingly large issue in Proof-of-Work.
By staking capital rather than energy, validators risk losing a portion of their value and future potential for staking by misbehaving while creating blocks. This incentivizes collaboration and minimizes malicious activity in the consensus process.
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 APR is around 8.05%.
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.
APR, or annual percentage rate, is the fixed interest rate earned on an investment over a one-year period. It is the percentage of return investors can expect to receive on their investment. On the other hand, APY or annual percentage yield, takes into account the compounding of interest on a fixed schedule. It includes both the interest earned and the interest on previously earned interest. When it comes to PoS protocols, compounding does not always apply as additional validators can be needed to stake more. Therefore, APR is used instead of APY. It's worth noting that APY and APR cannot be compared directly, as they measure different things. However, it is possible to convert APR to APY and vice versa.
APR, or annual percentage rate, is the fixed interest rate earned on an investment over a one-year period. It is the percentage of return investors can expect to receive on their investment. On the other hand, APY or annual percentage yield, takes into account the compounding of interest on a fixed schedule. It includes both the interest earned and the interest on previously earned interest.
When it comes to PoS protocols, compounding does not always apply as additional validators can be needed to stake more. Therefore, APR is used instead of APY. It's worth noting that APY and APR cannot be compared directly, as they measure different things. However, it is possible to convert APR to APY and vice versa.
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.