Think of staking like a supercharged crypto-based interest account.
By staking your original crypto (e.g., GRT) through Tenderizer, you can start earning rewards proportionally to the staked amount, doing no extra work. Beyond the potential appreciation of the staked asset, you will also passively earn staking rewards.
Why is that? Staking crypto also benefits web3 protocols in terms of security and being able to provide valuable work, such as confirming transactions, heavy computation or storing data. As a result, you share in the revenue of the protocol and any additional token rewards.
Tenderize takes it a step above by offering no-lock-up periods, meaning you can use the derivatives received (TenderTokens) across other investment vehicles and earn even more. Beyond the initial staking rewards, Tenderize also enables liquidity providing and yield farming for its TenderTokens. We’ll get to those later in this guide. Let’s look at how you can start staking on Tenderize.
Currently, there are two tokens you can stake:
- Livepeer (LPT) on Arbitrum
- Polygon (MATIC) on Ethereum
- The Graph (GRT) on Ethereum
Each staking option has a different APY, meaning the total return you can expect with the compounding effect after a year.
To start staking, go to the top right end corner of the page and connect your preferred wallet. Currently, you can connect your MetaMask, WalletConnect, or Coinbase Wallet.
After connecting your wallet, you can select your preferred token to stake from the dropdown menu. After selection make sure you’re under the right network. Tenderize is currently on Ethereum Mainnet (available for MATIC tokens) and Arbitrum (available for LPT tokens). The application will notify you if you're on the wrong network.
Now, you can select the amount of the tokens you want to stake. Then, you just need to click on the “Authorize Tenderize to spend” the token you selected (e.g., MATIC). After the authorization, click on “Stake,” and you’ll start earning rewards. Please be aware of gas fees when authorizing spending tokens and when staking. In the case of LPT, you don’t need to go through the “approve” step since a MetaMask popup will appear to sign a message, and then a transaction will be sent to approve the spending and staking.