.. also known as How-To-Base.exe.. The guide is focused on utilizing MetaMask, Ledger and various wallets such as ImToken to interact with Loom Network’s BaseChain Dashboard. The Loom team is working hard on Trezor and other wallet integrations.
- Loom Network offers an annualized yield of 5%, 7.5%, 10% and 20% dependent on different lock-up period (2 weeks, 3 months, 6 months and 12 months — before deduction of validator fees).
- Each year, up to 20% of Loom’s remaining token pool will be set aside for block rewards.
- There is a fixed total supply of 1,000,000,000 Loom tokens. The Block Reward emission schedule and fixed token supply makes Loom tokens deflationary in nature.
More information on staking economics can be found here on their Medium post.
Before we begin, please ensure that the following pre requisites are met:
- You have a Ledger OR you have MetaMask installed on your browser’s extension. COMING SOON: Wallet based staking will be so intuitive that you won’t need a guide;
- You should have some ETH tokens to pay transaction fees and ERC20 Loom tokens for delegation on either the Ledger or your MetaMask account;
- You understand how transfers between Ethereum and BaseChain works — you can visit here for more information;
- Ensure that you have log on to your MetaMask.
All done? Then let’s get on with our Base journey 😎.
Note: For users who already have mapped their Ethereum address to a BaseChain address — Fret not, just login as per usual. You will notice that the UI/UX has improved tremendously, to the point you do not need to even input your BaseChain seed phrase!
1: Creating a BaseChain Account
Firstly, go to Loom Network’s BaseChain Dashboard.
Depending on your wallet choice, click on the correct wallet to Login.
For first time delegators, you will be required to sign once on your ledger or Metamask account to map your BaseChain address to your Ethereum address.
Scenario 1: Ledger (Legacy) or Ledger Live
If you selected Ledger, you will be required to select a path between Ledger Live or Ledger (Legacy). The Ledger Live app and Ledger (Legacy) have different derivation paths which will change the order in which the addresses are displayed.
Choose the correct path that contains the wallet which stored your ETH and Loom tokens. Thereafter, choose the correct wallet address. Click Proceed.
Scenario 2: Metamask Wallet
A Metamask connection request will pop up if you selected Metamask. Click Connect to proceed.
You should come to a very informative landing page (we will go through specific functions of each tab at the end of the guide).
The landing page comes with 5 tabs on the left: Validators, My Account, My Delegations, History and Rewards. The dashboard will show the amount of ERC20 Loom tokens you have in your Ethereum address under Mainnet as well as the amount of Base Looms you have.
2: Depositing your ERC20 Loom tokens from Ethereum Account to Your BaseChain Account
In order to delegate Loom tokens to a chosen validator, you will first need to deposit Loom tokens onto BaseChain.
To kickstart the delegation process, click Deposit.
Insert the amount of Loom tokens to be deposited onto BaseChain. Thereafter, click Next.
Scenario 1: Ledger (Legacy) or Ledger Live
You will be required to sign twice on your Ledger. Once to approve the transfer, and once to deposit.
Scenario 2: Metamask Wallet
A Metamask popup will appear. Click Confirm to approve the transfer of ERC20 Loom tokens to BaseChain.
Thereafter, another Metamask popup will appear. Click Confirm again to perform the deposit.
It will take awhile before transactions get confirmed by the Transfer Gateway, check back in a bit 😎.
Note: If it is taking too long, try clicking on the History tab to check the deposit events, then click My Account. Your account balances will be refreshed.
There you go! Updated balances on both Mainnet and BaseChain. You can now delegate your funds to a validator of your choice, or withdraw them back to your Ethereum address.
Someone is ready to become a BaseChain delegator 😎.
3: Delegate Your Base Loom Tokens
Click on Stake tokens on the bottom of the page, or Validators on the left tab to see the list of validators available for delegation. Select your choice of validator by clicking on the the individual validator tab.
For a new delegator, you can click on the left button, Delegate to vote for a particular validator.
For an existing delegator, you can click Update to upgrade your Timelock Tier and/or increase your stake to the same validator.
Note: increasing your stake will refresh your Timelock again. This will be fixed once Loom pushes out a new dashboard build to support multiple delegations to the same validator.
Fill up the amount of Base Loom tokens to delegate and drag the sliding bar to select the lock time and bonuses (see picture below). Click on Delegate again to proceed.
You will be required to sign two transactions to perform the delegation.
You should see your delegation amount under the Updated Amount row within My stakes tab. Your delegation will be updated on the next election cycle.
Some important notes about delegation:
- The Timelock will refresh every time a new batch of tokens are delegated within the same period. For example, if you delegate for 3 month at t=0, and delegate again for 6 month when t=1.5 month, your total Timelock will become 1.5 month + 6 months = 7.5 month. You will receive the pro rata 3 month bonus for 1.5 month and full 6 month bonus for the 6 month period (assuming you don’t delegate again and let the Timelock run down).
- You are not allowed to delegate again using a shorter timelock. For example, if you are on 6-month Timelock, you will not be able to delegate again using 2-week or 3-month Timelock within the 6-month locked period.
- As such, we urge all delegators to delegate in lump sums to prevent unnecessary extensions on the Timelock.
- The Loom team is working on a solution to allow you to compound your rewards, and to delegate another batch of Loom tokens to the same validator.
- For now, reward cycles last 2 weeks each. You should aim to delegate your tokens right before a reward cycle ends to maximize your returns. If you delegate tokens to a validator in the midst of a reward cycle, your rewards will only start to accrue from the next reward cycle. For example, if you delegate tokens to a validator on day 1 of the 14 days, your rewards will only start accruing from day 15 to day 28.
- You have the option to redelegate your current Timelocked stake to another validator for any reasons (for e.g, if a validator increases their fees suddenly).
4: Other Features of the BaseChain Dashboard
To check your current delegations, click on the My Delegations tab. It should show all the validators that you have delegated to, the amount delegated to each validator and the expiry time for the Timelock.
Delegation rewards are paid out automatically by the DPoS contract at the end of every election cycle, which last about 2 weeks each.
To claim your delegation rewards, click on the Rewards tab. If there are rewards, click on Claim to obtain your yummy yield.
Some important notes about rewards:
- In the current DPoS release, your tokens will not earn yield after your Timelock goes to 0 (In the case of 2 weeks delegation, your Timelock is 10 minutes, but the reward is given out till 2 weeks). For example, a delegator under the 3 month Timelock plan would only earn 5% p.a for the cumulative time period they remain delegated after the Timelock goes to 0.
- Hence, we urge all delegators to set a notification after your tokens are unlocked to un-delegate and re-delegate in order to maximize your yield.
To withdraw your tokens, go back to the My Account tab and click Withdraw.
Fill in the amount you want to withdraw, then click Next. You will be required to Sign three transactions (on either Metamask or Ledger) to approve the withdrawal, and carry out the withdrawal on BaseChain and pay for some gas fee in ETH.
Notes on withdrawal of delegated tokens:
- You will only be able to withdraw your delegated tokens after the Timelock goes to 0.
- In order to withdrawal your tokens back to the Ethereum address, you will have to un-delegate your tokens through the individual validator page.
To view the history of all events on your Ethereum address and BaseChain address, click on History.
We hope that this guide has been useful for all Loom fans on their journey to bootstrap BaseChain! We are certainly looking forward to validate BaseChain together with you!
Quick note: Remember that delegation is non-custodial, as validators are not able to spend your Loom tokens. You retain control over your tokens at all times.
P.S. my favourite part about the DPoS dashboard. Loomy is just like the Loom team. Always running, always shipping. Special thanks to Luke Zhang for shipping this update! More to come!
Disclaimer: This guide is made available for educational purposes only, to give you general information and understanding on how to delegate on Loom Network. By using this guide you understand that there is no client-servicer relationship you, the writer and/or StakeWith.Us.
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