Stake dYdX with Kiln, enterprise-grade staking

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.

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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 incentives collaboration and fair practices while validating information in a similar way that PoW has with incentives and punishments to curtail malicious

Both are consensus algorithms, helping to democratize one participation to securing a blockchain. Delegated PoS or dPoS means that one validator can stake tokens from several clients. These clients can indeed delegate their tokens to an existing validator instead of running their own.

The risks associated with staking DYDX come from double signing and downtime. Double spending on the Cosmos protocol comes with a slashing penalty as well as downtime. If a validator breaks protocol rules it will be jailed and will be forced to exit the active set of validators.

Kiln’s technology helps mitigate these outcomes by providing the required maintenance. When delegating with Kiln, these issues are therefore taken care of so you don’t have to worry.

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There is a minimum staking amount of 1 DYDX.

DYDX rewards do not automatically compound. Staking rewards need to be claimed and re-staked.

You can maintain custody of your DYDX through any wallet or custodian solution of your choosing. Kiln’s DYDX staking is non-custodial, only you can access your funds by controlling the underlying wallet which holds a claim to the funds.

On dYdX, there is a 30-day unbonding period after unstaking tokens, after which DYDX tokens become liquid again.

Rewards can be claimed from your Kepler wallet by clicking ‘Claim Reward’. Claimed tokens can be added to your existing staking balance with the same or a different validator. Penalties on DYDX will result in a burn of validators' bonded tokens.

In the context of Proof-of-Stake blockchains, the gross reward rate (GRR) refers to the total or gross amount of rewards earned from staking before deducting any fees or expenses. This is a reward rate that fluctuates with the operations of the protocol and the performance of validators, it is not set by Kiln. The net reward rate (NRR), on the other hand, takes into account the deductions or expenses, providing a measure of the actual rewards received after subtracting fees or costs.

We invite you to visit the dYdX Chain announcement post and to check the dYdX website.