A Simple Guide to Staking (ATOM) on Osmosis Zone via Keplr Wallet
Osmosis has launched the world's first native cross-chain IBC automated market maker (AMM) protocol in the Cosmos Network ecosystem, using which clients can exchange tokens, stake or add them to liquidity pools to generate income. We have prepared a simple guide that will help you figure out how to stake, collect rewards and withdraw ATOM tokens via Keplr Wallet at the Osmosis Zone platform.
Note: This guide will also work for other coins available for staking on this platform.
What is Osmosis Zone
Osmosis Zone is an open-source DeFi platform based on Inter Blockchain Communication (IBC) technology developed for the Cosmos Network.
Osmosis users can add their tokens to liquidity pools and exchange them on a decentralized exchange. Cosmos IBC technology enables cross-chain transactions. In other words, IBC allows assets to be transferred from one Cosmos blockchain to another.
Important: Before you start using Osmosis, please read the Risk Disclosure Statement. By using the platform, you fully assume all risks and responsibility for any losses due to market making, staking, falling cryptocurrency prices, and smart contract vulnerabilities. Developers do not control or own the contract: it is decentralized by validators.
2. How to create Keplr
Keplr is an interchain wallet with a simple and intuitive interface for storing and managing tokens in the Cosmos Network, Kava, IRISnet, Certik, Persistence, and other blockchains. The Osmosis platform operates using the Keplr wallet, which supports Cosmos Inter Blockchain Communication (IBC). Keplr is used for staking at Osmosis.
To create a wallet, go to the Keplr website and click Get Started.
The browser extension version of the wallet will open. To access it, you need to download and install the Keplr plugin. Click Install for Chrome to continue, or just go to the Google Chrome Web Store.
Click Add to Chrome to install the Keplr extension in your browser.
Note: although the plugin is designed for the Google Chrome browser, it may also support other browsers. But for stable operation and in order to avoid possible errors, it is better to use extensions only in the Chrome browser.
Now create a wallet. This can be done in four ways:
- By logging in with your Google account;
- By creating a new wallet;
- By importing an existing ATOM wallet;
- By connecting a hardware wallet Ledger where you store ATOM tokens.
As part of this guide, we will examine the first three options.
Method 1. Sign in with a Google account
Click Sign in with Google.
Enter a name for your account and come up with a strong password, then click Next. Rules for creating a strong password:
- A secure password must contain at least 12 characters, but the more, the better;
- Use a variety of characters, add capital letters, numbers, and special characters;
- Avoid repetitions (AAA, 111, @@@) and simple sequences (qwerty, 12345, gfdsa, etc.);
- Do not use information that identifies you: dates of birth, surnames, and names (yours and immediate family members), etc.
- Use password generators like Password Generator if you can't come up with a strong password yourself. Many browsers support password generation.
Example of a good password: Hs4-qB8-Ees-g79
Example of a bad password: Antony1987
Log in to your Google account to enter the wallet.
The wallet has been created. You can now go back to the wallet tab to access the Keplr dashboard or just click Done.
Method 2. Create a new wallet
Important: when choosing this method, please note that if you lose access to your Google account, you will lose access to the wallet. In addition, this method is not safe since you do not store a backup copy (seed-phrase to restore the wallet). Therefore, it is preferable to choose the second method.
Click Create a new account.
Back up your seed phrase. Write the words down on paper and keep them in a safe place out of the reach of unauthorized persons. You can choose between 12 and 24 words. A 24-word seed phrase will be more reliable. The rules for safe storage of a mnemonic phrase are as follows:
After you write down the recovery phrase, come up with a name for the wallet and click Next.
Note: the option Advanced allows you to set additional parameters. This feature is for advanced users.
Add words in the same order as you wrote them on paper by clicking on them. Then click Register to create a wallet.
The wallet is ready to use. Click Done to return to the web wallet.
Method 3. Import wallet
Click Import existing account.
Enter the seed phrase or private key for the wallet, come up with a name, and then click Next.
Done. You have successfully connected the wallet and can now use it. Click Done to return to the Keplr wallet dashboard.
3. Adding funds to the wallet
Before staking ATOM tokens, you need to add funds to the wallet. To get the address, just click on it in the upper left corner of the screen, as shown in the screenshot.
Important: Cosmos has no minimum ATOM staking amount. But, if you want to stake, for example, 1 ATOM, then add crypto to your wallet in the amount of at least 1.1 ATOM so that you have enough to pay commissions with, which range from 0.0025 to 0.01 ATOM. But even with a minimum commission of 0.0025 ATOM, the transaction enters the blockchain in a few seconds, so there is no need to increase it.
The wallet has been topped up, and ATOM tokens are now available for staking. Similarly, you can fund your Keplr wallet with any other cryptocurrency by selecting the network in the left menu or by copying the address directly from the Keplr extension.
4. Staking: how to stake ATOM and select a validator
First, connect the Keplr wallet to the Osmosis DeFi platform if you haven't already, but the wallet has already been created. To do this, go to the platform website and click Connect Wallet.
In the window that opens, click Approve to give Osmosis access to transactions.
The wallet is connected. Now go to the tab Stake to select a validator and delegate ATOM tokens to it.
You can also find this tab in the Keplr web wallet. To do this, select the Cosmos blockchain, click on it to expand the list of available options, and select Stake. You can do the same with other cryptocurrencies if you need to stake them.
A page with a list of validators will open. Find in it a validator to whom you will delegate ATOM tokens, for example, Everstake. Then click the Manage button on the right.
Imagine that the validator is a director in an investment fund. If an employee is bad at doing his job and continues to procrastinate, the efficiency of his department is low, so the company potentially can "cut" salaries or even disband the department if it does not cope with the tasks. And this will affect not only the director but also the clients (delegates) who have entrusted him with their money.
The same goes for the blockchain: if you delegate your tokens to an unreliable validator, then you can not only lose some of the rewards but also stop receiving them altogether.
Everstake is a reliable staking provider that runs validator nodes on large networks like Cosmos, Tezos, Chainlink, Polkadot, Persistence, and many more. The Everstake team uses state-of-the-art hardware to keep their validation nodes up and to run, so they are trusted by a large community of over 360,000 delegates. As you can see in the image above, the Everstake validator is among the top 15 operators of Cosmos Network nodes by stake, which already says a lot about its reliability.
Now let's get back to staking. After you have selected a validator and clicked Manage, a window will open with a choice of action: you can delegate, undelegate or redelegate tokens. It will also display how many ATOM tokens you have staked. To continue staking, click Delegate.
Enter the ATOM amount for the delegation and click Delegate. Please note that the unbonding period is 21 days. This means that after clicking Undelegate, ATOM tokens will be available for use only after the end of this period.
Everstake's commission is only 5% commission on profits, which is below the Cosmos validator average of 12.5%. You can easily calculate your staking rewards by visiting the website: https://everstake.one/cosmos
Note: Do not enter the entire ATOM amount in your delegation wallet so that you have some money to pay for transactions. The average commission on the Cosmos network at the time of writing this guide is 0.00625 ATOM. Calculate the amount so that you can pay for least 5 - 10 transactions (unstake and rewards). For example, if you have 2 ATOMs in your wallet, then stake no more than 1.95 ATOM. As a reminder, Cosmos has no minimum for ATOM staking.
Select a commission and click Approve to complete the transaction. The Memo field is optional. You can enter an arbitrary Memo string, but you will need to specify it when unstaking. If you forget and lose a Memo, you will lose access to funds.
Note: The Memo parameter is optional. It is needed in order to protect your assets from hacking. Even if an attacker can gain access to your Keplr wallet, he will not be able to withdraw tokens without knowing the Memo.
Wait a bit. As soon as the validators add the transaction to the blockchain, your delegation data will be displayed in the Keplr dashboard.
Congratulations! You have successfully staked ATOM and from now on you start receiving rewards.
5. How to get rewards
The amount of accrued rewards will be available and shown in your dashboard. To receive your staking reward when it is credited, simply click Claim Reward on the wallet home screen.
Select the type of commission and click Approve to display the rewards. Don't collect rewards too often: the more you collect rewards, the more commissions you pay. Rewards are accrued continuously as new blocks are created (1 block / 7 seconds).
Done! The rewards are on the balance of your wallet and you can freely dispose of them, for example, stake, thereby increasing the total stake and future rewards, or transfer to another platform/exchange for further use.
6. How to unstake
You can unstake your delegated ATOM immediately, but tokens will be available in your wallet only after the end of the period of unbonding, which lasts 21 days. If you want just to change the validator, then there is no need to unstake, since you will not receive rewards throughout the entire unbonding period - just use the Redelagate function. In this case, the unbonding period does not apply.
To unstake tokens, in the dashboard, opposite the name of the validator, click the button Manage, then click Undelegate.
Immediately after that, the 21-day unbonding period will begin.
Important: As soon as the unbonding period begins, you will no longer receive rewards. And only after the end of this period, you will be able to operate your unbonded ATOM in the wallet. You cannot cancel the unbonding period: you will have to wait for its completion in order to stake the tokens again or send them to another address.
Enter the amount of ATOM you want to withdraw and click Undelegate.
Then confirm the transaction by clicking Approve.
Done. You have staked your tokens. After 21 days, you will be free to use them. You can track how many days are left until the unbond in your Keplr wallet. To do this, go to the Dashboard and scroll down to the bottom of the page.
Now you know how to delegate ATOM tokens on the Osmosis Zone, using Keplr wallet.
Also, you can read other guides on staking ATOM:
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