MATIC, the native utility token of Polygon, is integral to the functionality and scalability of the Polygon network. Initially known as Matic Network, the project evolved to offer a Layer 2 scaling solution for the Ethereum blockchain, enabling interconnected blockchain networks that communicate seamlessly, securely, and efficiently.
One way to actively engage with the Polygon network is by staking MATIC tokens, which both earn you rewards and contribute to the network’s security. In this guide, we will walk you through the process of staking MATIC using the Sender Wallet, ensuring you’re well-equipped to participate in and benefit from the Polygon ecosystem.
What Is the Polygon Blockchain?
Polygon is a Layer 2 scaling solution for Ethereum, focused on addressing some challenges facing Ethereum, such as high fees, slow transaction processing speeds, and limited scalability. To achieve this, Polygon leverages a combination of different technologies, such as Plasma, zkRollups, and Optimistic Rollups, to offer fast and low-cost transactions that can handle high throughput.
In addition to being a scaling solution, Polygon also operates as an independent blockchain network with its own native cryptocurrency, MATIC, which is used for governance, transaction fees, and staking.
Over the years, Polygon has gained significant traction in the blockchain industry, attracting a wide range of users, developers, and projects. Its growing ecosystem includes popular dApps, such as Aave, QuickSwap, and Curve Finance, as well as partnerships with major companies like Google Cloud.
To learn more about Polygon and its uniqueness, check out this article, Polygon Overview: Scaling the Ethereum Blockchain.
Why Stake MATIC?
Staking enables you to validate transactions, support the security and stability of a blockchain network, and simultaneously earn rewards. It incentivizes users to actively participate in network operations and contribute to the broader blockchain ecosystem.
MATIC is the native cryptocurrency of the Polygon Network, and staking MATIC allows you to earn rewards while helping to secure and support the network. By staking MATIC, you contribute to the network’s consensus mechanism, which is used to validate transactions and create new blocks in the blockchain. In return for your contribution, you earn a portion of the block rewards that are generated by the network.
You can calculate your potential rewards with the Rewards Calculator.
What Is the Sender Wallet?
Sender is a crypto wallet that allows users to securely store, send, receive, and exchange various digital assets. It is a non-custodial wallet, which means that users have total control over their funds and private keys. Designed for simplicity and ease of use, Sender offers features like credit/debit card purchases, bank withdrawals, two-factor authentication, and seed phrase backup for added security.
The wallet is available as a mobile app for both iOS and Android devices, as well as a web-based version for desktop users.
How to Set Up a Sender Wallet?
Please visit the official Sender website, choose your preferred operating system, and download the app. The wallet is available as a mobile app for both iOS and Android devices, as well as a web-based version for Chrome users. In this guide, we’ll be using the mobile version.
Once installed, go to the Sender app. If you are a new user, click Create A New Wallet, come up with and confirm your password, give your wallet a name, and tap Create.
Now that your wallet is created, it’s time to move on to the most important part of protecting it – backing it up.
To utilize all the security features offered by Sender, it is essential to back up your wallet. However, you must exercise caution during this step as the safety of your funds depends solely on you. Losing or revealing your passphrase could result in the permanent loss of your assets.
Upon setup, you will be provided with a 12-word phrase that needs to be recorded and stored in a secure location. In the unfortunate event of device loss or theft, this phrase will serve as a means to restore access to your funds. Therefore, it is not advisable to take a screenshot of the passphrase, because storing it in digital format is quite risky. Now that you know the precautions, tap Understood, rewrite the phrase, and click on the checkmark to confirm that you have saved it. Click Continue.
To complete the setup process, in the next window, enter the word from your phrase under the number that the application will show you and click Create Wallet.
Now, your wallet is created and can be replenished. Tap Finish and use your Ethereum address to top it up. Please remember that Polygon staking takes place on the Ethereum mainnet, so you need to have your MATIC in ERC-20 and to be safe, a provision of 0.05-0.1 ETH for fees.
How to Connect Sender Wallet to Polygon
To start staking, you will have to link your Sender wallet with Polygon. Go to the Polygon Staking dashboard and click Login on the upper right corner of the screen.
WalletConnect is the protocol used to link your wallet with Polygon. Be sure to choose it from the available connections list. Once selected, a QR code will promptly appear on your screen.
In the meantime, return to your Sender wallet home page and select WalletConnect, under Settings. Then point your device’s camera at the code. After scanning the QR, you will receive a request to connect to Polygon Staking, which you’ll need to Allow.
How to Stake MATIC via Sender Wallet
We are almost there! But before proceeding to delegation, please remember that Polygon staking takes place on the Ethereum mainnet, so you need to have your MATIC in ERC-20 and to be safe, a provision of 0.05-0.1 ETH for fees.
Navigate back to the Polygon Staking dashboard and scroll down to view the network’s overview, including all active validators, their commission rates, stake amounts, health status, and uptime. These “health metrics” can assist you in selecting a trustworthy validator. Let’s delve into the meaning of these metrics.
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Uptime refers to the number of blocks signed during a specific time frame. If a validator’s uptime is not close to 100%, they may be deemed unreliable and penalized.
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The commission rate is the percentage that the validator receives for their services from your reward. It’s important to consider this metric because choosing a validator with a 100% commission rate would result in no reward for you.
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The amount of stake is the total number of tokens delegated to a particular validator.
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Health status is divided into colors, green represents excellent performance and orange means the validator’s performance is weakened and there is a need to pay more attention. Validators marked in red have had a low performance for a long time and are at a high risk of being forced to unstake.
Selecting a trustworthy validator is crucial for the security of your funds and earnings. Thus, it is essential to understand these metrics thoroughly before making a decision.
To delegate to Everstake, type the name of the validator in the search bar and click on Delegate.
Now enter the MATIC amount you want to stake and click Continue. The minimum stake amount is 1 MATIC, so you can always start small. To confirm the transaction, return to the Sender app.
This wallet also offers some advanced features such as choosing the transaction processing speed. In the case of the faster speed, the price of gas will be slightly higher, and by choosing a lower speed, you can save on network fees. Choose a speed that is convenient for you and tap Confirm.
Return to the Polygon Staking dashboard and click Delegate. Then again, confirm the transaction in your Sender wallet and await approval, which can take a few minutes.
If you’ve completed all the essential steps correctly, congratulations! Your delegation is now active, and you should receive rewards that accumulate at each checkpoint, which generally occur every 30 minutes.
You can verify your delegation and track your earned rewards in the My Account section of the Polygon Staking Dashboard. Moreover, you have the option to unstake, stake with multiple validators, or restake your funds with the current validator. To withdraw your rewards, you must accumulate at least 2 MATIC.
You are now familiar with the process of delegating MATIC tokens through the Sender wallet. It’s important to note that you must have sufficient ETH in your wallet to cover any transaction fees.
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