Stake Osmosis with Kiln, enterprise-grade staking
What is Osmosis?
Osmosis is an advanced automated market maker (AMM) protocol built using the Cosmos SDK. People can use this blockchain to create liquidity and trade IBC enabled tokens. OSMO is the token of the Osmosis Hub. This platform aims to aid in the interoperability solution offered by Cosmos and increase scalability, as well as access to tokens offered across the network.
What is staking?
Proof-of-Stake is a newer form of consensus algorithm that relies on a stake rather than electrical power. This makes it more efficient and environmentally adapted. By offering a stake in the form of locked tokens into a smart contract. This stake is used to secure the chain and validate blocks.
By locking a protocol’s native tokens (ie OSMO) 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 not only earns you a reward but also secures the chain in the process. It is a process that is part of the overall mechanics of a PoS chain. Tokens originate from the inflation of the chain’s native currency. You can help network security by staking your OSMO and also retain rewards in the meantime.
If you do not stake, your assets will be eroded from protocol inflation.
- 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 Osmosis with Kiln?
The minimum amount you will need to stake Osmosis is 1 OSMO. You will also need to pay 0.1 OSMO as a transaction fee for delegating your stake to the Osmosis validator of your choice. To stake with Kiln you will need to:
- Install the Keplr Extension
- Login to the Kiln dashboard
- Initial Stake by selecting your Account and the amount of OSMO
- Connect your Keplr to Kiln
- Delegate Stake
- You will begin receiving rewards on your staked OSMO after each epoch (24 hours). These are automatically sent to your wallet and will need to be re-staked should you wish to compound your earnings.
The unstaking period for Osmosis is 14 days, rewards are sent directly to your wallet whenever they are earned.
What are the rewards associated with staking OSMO?
As an incentive for helping to safeguard the network, you can earn up to 23.33% APR* from each validator you stake on Kiln.
Why should you stake your OSMO with Kiln?
Kiln has a strong record of staking Ethereum as well as other cryptocurrencies such as OSMO. It continues to expand its staking options to newer tokens like OSMO and are at the forefront of major network validation. The Kiln platform was even one of the first to stake on the new ETH 2.0 PoS system. Kiln is the leading enterprise-grade staking platform, enabling institutional customers to stake Osmosis, and to whitelabel Osmosis staking functionality into their offering.
- Stake OSMO in 1 click
- 99% rewards guarantee
- Manage all your OSMO stakes and rewards from a single dashboard
- Non-custodial, work with your existing custodians OSMOutions e.g.Fireblocks
- SOC 2 certified and Industry leading SLAs (0 penalties recorded and 99.95% effective uptime)
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Stake Osmosis 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 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.
When do I receive OSMO rewards?
Validators and delegators receive OSMO rewards after every epoch (daily). OSMO rewards are not compounded and require re-delegation with each block reward you receive.
Does the interest compound when staking OSMO?
No, there are no compounding rewards when staking Osmosis, they will need to be restaked with every time they are received.
What are the risks associated with staking OSMO?
After 2 hours of downtime, validators can be ‘jailed’, preventing validating blocks until unjailed. Slashing for double signing is 5% of an Osmosis validator’s stake.
Is there a minimum and maximum amount to stake for Osmosis?
There is a minimum staking amount of 1 OSMO to validate blocks and a 0.1 OSMO transaction fee to delegate your stake.
Do I maintain custody of my OSMO tokens? Is OSMO staking non-custodial?
While you may self-custody your staked OSMO (ideally using a Ledger hardware wallet), you may choose a third-party custodian to control the withdrawal of your staked OSMO (ie Fireblocks).
What is the lockup period to stake Osmosis? When can I unstake and withdraw my OSMO?
There is a 14 day unbonding period for Osmosis.
How rewards and penalties work?
For every slot, the Osmosis validator is expected to sign attestations. If submitted attestations are good the validator receives rewards, otherwise it receives penalties. In case the validator is offline it will also receive penalties.
What is the average block time on Osmosis?
The average block time on Osmosis is ~ 6 sec.
What is an Annual Percentage Rate (APR) and how is it different from Annual Percentage Yield (APY)?
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.