Cardano

Stake Cardano with Kiln, enterprise-grade staking

Ernest Oppetit, Chief Product Officer
September 27, 2022

What is Cardano?

Cardano is a Proof-of-Stake blockchain platform: the first to be founded on peer-reviewed research and developed through evidence-based methods. This blockchain wants to solve security and sustainability issues. The native token of Cardano blockchain is ADA.

Is Cardano a Proof-of-Stake blockchain?

Cardano works on a specially designed Proof-of-Stake (dPoS) blockchain protocol for consensus called Ouroboros. This consensus mechanism allows for ADA to be sent and received easily and securely at all times, while also ensuring the safety of smart contracts on the Cardano blockchain.

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 of locking native tokens (ie ADA) into “validators” to give “Validators” the right to secure a chain. Validators achieve this by proposing new blocks or attesting other validators blocks, earning a yield while doing so.

Why should you stake your assets?

Staking generates the safest and most predictable yields in the crypto space. It is the most natural yield feature in crypto as the value originates from the blockchain’s native currency inflation, making it forecastable. By staking your ADA tokens, you help secure the network and earn rewards at the same time.

In other words, not staking holds back the network’s inflation as your token share is diluted among other people who are staking and accumulating new tokens.

Staking ADA gains its validators rewards based on transaction fees accumulated in a newly minted block, as well as monetary expansion over the same period.

You can stake your ADA 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
$524
/
every month

How to stake Cardano with Kiln?

There is no minimum token requirement to delegate. You will need to pay a delegation fee to your pool before allocating your stake to it. To stake ADA, you’ll only need to access Kiln's dashboard and you can stake it in just a few clicks. Select the Account you want to stake on, the amount of ADA and connect your wallet:

  1. Login to the Kiln dashboard
  2. Initial Stake by selecting your Account and the amount of ADA
  3. Connect your wallet: Daedalus desktop wallet, Ledger Nano S, Adalite, …Kiln supports multiple wallets as well as WalletConnect
  4. Delegate Stake
  5. Receive rewards after the first epoch (5 days) worth of staking. 

Unstaking ADA is one of the simplest unbonding processes in the crypto space. Unbonding is immediate, and you can use your ADA as soon as you remove your stake from the validator pool.

What are the rewards associated with staking ADA?

Using a staking pool to delegate your assets to an ADA validator, you can generate rewards based on collected transaction fees from each block processed. Beyond this there are staking incentives put in place from when staking on Cardano was launched in 2020. This amounted to 13.8 billion ADA set aside as a reserve to push for more stakers. The amount of ADA you have staked in the pool will dictate how much you earn in rewards as they are directly proportional to your stake.

Protocol Card
Expected yield
%
Token
ADA
APY
3.6%
Number of live validators
2,076
Consensus
PoS + dPoS
Node type:
Relayer, Stake Pool
Hosting
Cloud

Why should you stake your ADA with Kiln?

Kiln is the leading enterprise-grade staking platform, enabling institutional customers to stake ADA, and to whitelabel Solana 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 Solana easy, secure, and accessible to everyone.

  • Stake ADA in 1 click
  • 99% rewards guarantee
  • Manage all your ADA stakes and rewards from a single dashboard 
  • Non-custodial, work with your existing custodians ADAutions e.g.Fireblocks
  • SOC 2 certified and Industry leading SLAs (0 penalties recorded and 99.95% effective uptime)

Looking to stake ADA?

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

Stake Cardano 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 one participation to securing a blockchain. DPoS is an iteration of PoS combining real-time voting with a system based on reputation to reach consensus across the blockchain. Voting power is still determined by how many tokens they have.

When will I receive ADA rewards?

Rewards for staking ADA and delegation are awarded at the end of every epoch. On the Cardano chain, an epoch is equivalent to five days. Rewards are calculated according to transactions processed on validated blocks over the period and come with an in-built monetary incentive along with the collected fees. A current estimated reward rate is around 5.24% per epoch.

Does the interest compound when staking ADA?

Yes, rewards accrued through staking Cardano are re-delegated back into your original amount. In this way you are consistently compounding your stake and increasing your future rewards.

What are the risks associated with staking ADA?

The Cardano network does not implement slashing into its staking process so the risks associated with staking ADA are minimal for both validators and delegators.

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

There are no minimum or maximum amounts associated with staking Cardano however, fixed fees are included in the delegation process which will need to be considered. Check that you have enough ADA to stake on top of these fees to effectively stake your assets.

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

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

What is the lockup period to stake Cardano? When can I unstake and withdraw my ADA?

There is no minimum lock up period associated with Cardano, you can release and use any ADA you are staking as soon as you unstake.

How rewards and penalties work?

Every slot the validator is expected to sign attestations. If submitted attestations are good the validator receives rewards, otherwise it receives penalties. In case the Cardano validator is offline it will also receive penalties.

What is the average block time on Cardano?

The average block time on Cardano is ~20 seconds, though this is fluid and can change with time depending on various factors.

What are the specificities of a Cardano validator?

To run a full node on Cardano requires a certain degree of technical understanding. However, delegating your ADA is a lot simpler and can be done with even a small amount of capital. You will need a funded wallet with which to delegate your ADA, including some funds set aside for delegation fees.

Unbonding is simple and instantaneous, you can use your coins as soon as you decide to unstake.

Rewards are received after every epoch, five days.

Where can I learn more about Cardano?

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