How to Stake DYDX on the dYdX Chain: A Step-by-Step Guide
Para la versión en español de este artículo, haga clic aquí.
Originally founded in 2017 as a simple margin trading platform, dYdX has evolved into a premier decentralized derivatives exchange supporting perpetual futures across 36 digital assets. After initially building on Ethereum Layer 1, dYdX migrated to Starkware Layer 2, and then moved to Cosmos. The dYdX network, with its v4 version, utilizes the Cosmos SDK and the Tendermint Proof-of-Stake consensus protocol. This open-source software, audited by Informal Systems and launched by dYdX Trading Inc., introduced a fully decentralized, off-chain order book and matching engine, offering a scaling capability far beyond any current blockchain.
The dYdX Chain, which began operation on October 26, 2023, has established itself as a robust and reliable network. The DYDX token, the native currency of the network, plays a crucial role in staking, security, and governance. As DYDX holders, we can act as validators or delegate our stake, increasing the network’s security and our participation in the consensus process. Additionally, DYDX allows us to propose and vote on network changes, ensuring democratic evolution.
Step-by-Step Tutorial to Stake DYDX on the dYdX Chain
Step 1: Open/Install Keplr Wallet
- To begin staking dYdX using the Keplr wallet, head over to the dYdX Keplr wallet dashboard. If you do not have the Keplr wallet installed you can follow our Keplr tutorial.
- Once on the Keplr Dashboard, ensure you are on the “dYdX” page. This is where you will continue to stake.
Step 2: Search for the DragonStake Validator
- To begin the staking process with DragonStake, search for “DragonStake” under “All Validators” below. If you have trouble finding the DragonStake validator, view the full details here.
- Once you have found the DragonStake validator, select it, and then click “Stake” when you are ready to begin staking tokens.
Step 3: Stake dYdX Tokens
- When you are ready to stake your dYdX tokens, input the amount you wish to stake, and click “Stake.” Remember, tokens are locked during staking and are subject to a mandatory 30-day unbonding period once they are unstaked.
Step 4: Confirm the Transaction
- After clicking “Stake,” proceed by confirming the transaction on your Keplr wallet. You will see a “Transaction is in progress” notification in the top right corner of the screen. Once the transaction is confirmed, you will see a notification saying “Transaction successful.”
How to Unstake DYDX Tokens
Unstaking DYDX tokens involves removing your tokens from being actively staked to a Validator on the dYdX Chain. Here’s how to do it:
Step 1: Access Keplr Dashboard
- Open your Keplr wallet and navigate to the validators to whom you have staked DYDX tokens.
Step 2: Begin Unstaking
- Click on the Validator from whom you wish to remove your stake. Enter the number of DYDX tokens you wish to un-stake and confirm by clicking ‘Undelegate.’ Pay the necessary gas fee on the dYdX Chain to process the transaction.
Step 3: Unbonding Period
- Note that your DYDX tokens will enter a 30-day unbonding period, during which they are not active but still under the slashing risk from the original validator. Once unstaked, you can choose to restake with a different Validator or manage your tokens as you see fit.
- Unstaking DYDX tokens allows you to regain control of your assets but requires understanding the risks and timing due to the unbonding period. This flexibility supports diverse strategies aligned with your investment goals and risk tolerance.
Key Staking Considerations: Before staking dYdX, it is important to understand a few key consider that the unbonding period last 30 days.
By following this step-by-step guide, you can easily stake and unstake your tokens, maximizing your rewards and contributing to the decentralized ecosystem.
Disclaimer: This article is provided for informational purposes only. Cryptocurrency investments are subject to high market risk. DragonStake is not responsible for any direct, indirect, or consequential losses as a result of the staking process. Always perform your due diligence before making financial decisions.
