Gateway to Staking : A How-to Stake & Delegate Guide — Osmosis
Osmosis is the brand new AMM protocol of Cosmos ecosystem. People can provide liquidity to the various liquidity pools and get $OSMO as rewards. And also can earn $OSMO by staking them. Osmosis can energize the ecosystem by allowing people using ATOM and other tokens on the large and powerful Cosmos network to enjoy DeFi.
Recently, the Osmosis team announced via Twitter that Osmosis will support UST, terra’s stablecoin. This will bring UST liquidity and powering Osmosis and Defi protocols of Cosmos ecosystem.
So we figured, what better time than now to give you a step-by-step guide on staking your OSMO? But before we jump right into it, let us walk you through what Osmosis is.
Osmosis is a hub AMM in Cosmos ecosystem. It is an advanced automated market maker (AMM) protocol built using the Cosmos SDK that will allow developers to design, build, and deploy their own customized AMMs. Anyone can make their own pool using multiple kinds of tokens and parameters they want such as swap fees or curves. Also, the optimal swap fees and parameters for AMM will fluctuate depending on various factors such as block times, slippage, trading fees, market volatility, etc. Osmosis is not a hard-coded AMM, but aims to be an AMM that reflects these changes.
Before we get started with staking, here are some facts and figures to keep in mind when staking OSMO:
- Estimated reward rate: 117% (snapshot on 12/1)
- Unbonding period: 14days
- Reward type: OSMO
- Reward Frequency: Every block
Why Stake with DSRV?
South Korea’s Leading Validator
We understand the importance of geographical distribution for blockchain networks. Proof-of-Stake enables us to start globally on day 1.
Strong Technical Contributor
We are a tech-driven team that loves to build solutions that help users participate in top blockchain networks.
Trusted by leading institutions, and passionate community members in South Korea and around the world.
Staking OSMO with DSRV
You cannot buy OSMO directly from exchanges. To get OSMO, You need to buy ATOM, AKT, DVPN, IRIS, CRO, or XPRT on exchange and swap to OSMO on the Osmosis platform. We will walk you through about it too 😉
Table of Contents:
- Install Keplr wallet
- Create a new wallet
- Swap some tokens to OSMO
- Stake OSMO
1. Install Kelpr wallet
Kepler is an interchain wallet that supports Cosmos ecosystem.
Follow the link and install Keplr wallet. Note that Keplr only supports Chrome browser.
2. Create a new wallet
After installation, click “Create new account”.
In this guide, we will cover how to create a wallet with Mnemonic phrase, but you can also create one using Google account.
2–2 Save Mnemonic Seed for recovery
You can choose among 12 words/24 words. Choose one and Keep your Mnemonic seed phrase safe. You will need it to recover your wallet.
2–3 Check the Mnemonic Seed phrase
To make sure you save the correct phrase, click on the words in the order of the Mnemonic Seed phrase you saved in the previous step.
Click “Done”. Now you can access your wallet 👏
3. Swap some tokens to OSMO
3–1. Fund your wallet
After you create a wallet, fund some ATOM, AKT, DVPN, IRIS, CRO, or XPRT to your wallet. We will use ATOM as an example.
3–2 Change the network
Click “Cosmos” on the top and change network to “Osmosis”.
However, you will not be able to find any token on Osmosis network yet.
But don’t be worried. You can easily transfer tokens on Cosmos to Osmosis using IBC. Let’s figure out how it’s done on the Osmosis platform.
3–3 Deposit assets to Osmosis network
Go to Osmosis platform. You need to connect your Keplr wallet to this web page first. Click “Approve”.
Go to the “Assets” menu and click “Deposit”.
- Enter the amount you want to deposit to Osmosis network and click “Deposit”.
- Select transaction fee and click “Approve”.
To pay transaction fees, you need to leave some balance in your wallet.
It may take few minutes to transfer your tokens using IBC. If it’s successfully deposited, you can find it in the balance section.
3–4 Swap to OSMO
Now you make it to have assets on Osmosis network!
- Go to the “Trade” menu to swap it to OSMO.
- Insert the amount you want to swap and click “Swap”.
3. Select transaction fee and click “Approve”.
But this time, you need to set the transaction fee to ‘Low’ because you don’t have any OSMO yet.
To use other tokens such as AKT, DVPN, IRIS, CRO, XPRT, REGEN, or IOV, click the little arrow next to the token name and change it.
4. Stake OSMO
4–1 Go to the staking page
Now you can see your OSMO on Keplr wallet. Open the wallet and click “Stake” to go to the staking page.
4–2 Choose a validator
Find DSRV on the validator list and click the “Manage” button.
4–3 Enter the amount
1. Check validator details and click “Delegate” to continue.
2. Enter the amount you want to stake and click “Delegate”.
3. Select transaction fee and click “Approve” .
Now you can check your staking status on the top of the page or your wallet.
Your rewards are generated per block (6 seconds), you can receive it by clicking the “Claim” button.
You can undelegate at any time, but 14 days are required to completely unbond your tokens.
You can get more information about Osmosis from Osmosis Medium.
Hope this guide could help you gain a better understanding of what Osmosis is and how-to stake OSMO. Happy staking! 🥳
DISCLAIMER: This is not financial advice. Staking, delegation, and cryptocurrencies involve a high degree of risk, and there is always the possibility of loss, including the failure of all staked digital assets. Additionally, delegators are at risk of slashing in case of security or liveness faults on some protocols. We advise you to do your due diligence before choosing a validator.