Loom Delegation Tutorial
3-Step Walkthrough
Welcome to this simple 3-step Loom Delegation Tutorial. You will need:
- access to your Ethereum address holding your Loom tokens through Metamask (you can access hardware wallets through metamask). If you have never used Metamask, you can watch a 3 min tutorial on their official website at https://metamask.io/.
- approximately 0.0007 ETH (~$0.1) to execute two transactions at 10 Gwei each. These values will fluctuate with network congestion and Ether price.
- 5–10 minutes of your time.
Introduction
Loom is a Layer 2 scaling solution built on top of Ethereum. It leverages a technology called Plasma, which allows for scalable blockchain games and dApps while maintaining the security offered by Ethereum. The network is maintained by several validators, including Stake Capital, who stake tokens as a security deposit for the right to validate transactions and earn rewards.
Loom token holders can delegate their tokens to validators like Stake Capital, and earn between 5 and 20% per year. The staking returns depend on the staking period, refer to Step 4 for more details on the mechanics.
Step 1: Access your Loom account with Metamask
The delegation process takes place on Loom’s Plasma Chain dashboard, which you can access here: https://dashboard.dappchains.com/en/login
Click on the Metamask icon to begin the process.
Step 2: Link your Ethereum Address
You must link your Loom Plasma account with your Ethereum address that owns your Loom token. This is done by signing a message from Metamask (no gas required).
To begin the process, click on the MetaMask icon. You will see a first pop-up message asking for permission to connect to your Metamask account, click connect. Then, another pop-up will ask you to Sign a message. This will link your Ethereum address to your Loom dashboard .
Step 2: Deposit your Loom Tokens
Now that your accounts are linked, your Loom balance will load in your Plasma account. To delegate your Loom tokens, you must deposit them from the Ethereum Mainnet to the Loom PlasmaChain:
Click the Deposit button, then a pop-up will appear to ask you how many you want to deposit: enter the desired amount and click Confirm.
Transfering the tokens requires two successive on-chain transactions, both approved from your metamask wallet:
- Approve transfer of Loom.
- Execute transfer of Loom.
Allow a minute for your balance to update once both transactions have been confirmed on Ethereum.
Do not leave the page until you have submitted both transactions!
Step 3: Stake your Loom Tokens with Stake Capital
Your PlasmaChain balance will be updated. Now you can stake your Loom tokens.
On the dashboard’s side menu, select Validators to view a list of all available validators, and then click on Stake Capital. Our validator address is: 0xeb5d1fa6e421485c7ae2fba8e3199588ed931daf
You are now presented with some basic info and three options: Delegate, Redelegate, and Un-delegate.
Delegate
This is where you choose how much you want to delegate, and whether you want a locktime bonus. Staking on Loom currently returns 5% per year by default, however, you can opt for a longer locktime period to increase your return rate:
- 2 weeks → 5% interest per year
- 3 months → 1.5X multiplier → 7.5% interest per year
- 6 months → 2.0X multiplier → 10% interest per year
- 12 months → 4.0X multiplier → 20% interest per year
The locktime period is the minimum duration you wish to stake. You may un-delegate your tokens anytime after your locktime period has ended, although you will continue earning at your current interest rate if you leave them longer. For example, if you choose a lock time of 3 months, but leave your Loom tokens for 7 months, your rate will be 7.5% during the 7 months.
Your tokens will be staked in the validator at the start of the next period, and your rewards will be displayed in the Rewards side menu. Periods currently last 10 minutes, and are represented by the blue bar (top left of dashboard), but the duration will soon be updated to 2 weeks.
Re-delegate
This function is used to transfer your staked Loom from one validator to another, without affecting your locktime bonus.
Un-delegate
This function allows you to withdraw your Loom tokens from our validator anytime after your locktime has ended.
We hope this tutorial was clear, and we look forward to validating the Loom Plasmachain with you. Your rewards will be paid every two weeks and will be visible from your Plasmachain account. Please note that interests are paid in Loom tokens, and that the price of Loom may fluctuate during the staking period.
If you have any questions, please join our Telegram support, where our team will be happy to assist you.
