Interoperability is a significant concern for every cryptocurrency adopter, as it is about interacting with tokens, DeFi, GameFi, NFTs, and so on across multiple blockchains. Most of these blockchain networks operate in absolute isolation, thus creating a pronounced need for more interoperable blockchain protocols.
This is where Celer Network comes into play. Celer is one solution that bridges the gaps between blockchains: a blockchain interoperability protocol that enables users to interconnect and interact with 30+ leading blockchains.
Imagine deploying multiple isolated copies of smart contracts on different blockchains to achieve interoperability. Instead, Celer achieves seamless multi-blockchain interoperability by pairing State Guardian Network (SGN) smart contracts, a Tendermint-based blockchain, with the smart contracts of multiple chains.
The Celer Network enables developers to access efficient liquidity utilization, coherent application logic, and shared states. It also allows users to earn a two-way passive reward when they stake the network’s protocol token, CELR.
This post covers the details of staking CELR on the Celer Network.
What Is CELR?
CELR is the Celer Network’s protocol token, ensuring the economic security of the Celer Inter-Chain Message when staked on the State Guardian Network (SGN). Stakers can earn a portion of the transaction fees from cBridge amid the staking rewards they gain.
What Is CELR Staking?
Validators, such as Everstake, operate nodes that are responsible for network operations and receive incentives in the form of CELR rewards. Delegators can also participate in securing the SGN network by delegating their tokens and receiving a share of the block rewards earned by validators.
Staking CELR allows Everstake users to earn rewards for staking and providing liquidity and a percentage of the fees paid by SGN users. Rewards are distributed per block, and users can withdraw or reinvest their rewards anytime.
It should be noted that staking involves certain risks, such as the possibility of being slashed for downtime or double signing. When unstaking CELR from the network, there is also a 7-day unbonding period during which users cannot earn rewards and are vulnerable to being slashed.
Getting Started with Staking CELR
You need a crypto wallet to get started. If you already have one, ensure it is logged on to your device and proceed to Celer SGN Staking Website. Otherwise, create a wallet before proceeding. For the purposes of this guide, we’ll be using Metamask.
Connect Your Wallet and Start Earning
- Proceed to Celer SGN Staking Website. Click Connect Wallet at the top right corner of your screen.
- Select your wallet from the pop-up menu. This will automatically connect the selected wallet to the Celer Network.
Top Up Your Wallet with the CELR Token
You can buy the CELR token directly from numerous crypto exchanges (a full list is available here). You’ll have to Connect your crypto wallet to the exchange of your choice.
You can also swap any stablecoin for CELR. To do this, Import the CELR token contract into your wallet:
- Click Wallet, then Import Tokens.
- Using the search button, Search for CELR or the Celer Network token and Import.
- Alternatively, you can copy the CELR contract address from EtherScan and paste it into the Token Address box under the Custom Token menu.
- Next, click on the imported CELR token contract and select Swap from the top menu.
- Enter the amount of ETH you want to swap for CELR.
- Then click Review Swap to proceed.
In the Advanced Options beneath the Review Swap button, ensure you use the appropriate slippage tolerance for any transaction.
Proceed to the Celer Network to start staking.
Staking CELR
Staking allows you to earn passive rewards without selling your CELR. For example, from the list of available validators on the Celer Network, you may choose to stake your CELR token with the Everstake validator. By doing this, you earn a portion of the transaction fees from cBridge and your staking rewards:
- Navigate to Celer SGN Staking Website.
- Select Everstake from the list of all validators and then Click Stake or Delegate.
- Type in the amount of CELR you want to stake and click Permit to stake your CELR. Click Confirm when prompted to confirm the transaction, then Delegate to approve.
- Once approved, a pop-up will appear on your screen with the message "Delegation Completed,” which means that you have completed the staking. Note that it may take some time to show in My Rewards.
- Click the expand button next to Details to check your delegation details.
Staking Providers
There are 21 validators currently on the Celer Network. Validators are responsible for voting on, verifying and maintaining transaction records. For the purposes of this guide, we’ve used Everstake, the biggest decentralized staking provider running over 8,000 nodes for 50 blockchain networks. Everstake has 100 validators with a staking pool of 175,820,980 CELR and charges a commission rate of 10% on the Celer Network.
Claiming Staking Rewards
Unlock your staking rewards to claim them:
- Click Unlock.
- Then click Claim on the pop-up screen to confirm the pending transaction.
- Alternatively, navigate to Claim in the My Rewards menu to claim rewards.
You can always check the status of your claim on SGN or Etherscan. Note that the transaction takes a few minutes to complete on Ethereum.
Claiming Transaction Fees from cBridge
- Navigate to the My Rewards menu and click the Claim Fee Rewards pool-based bridge next to cBridge Transaction Fee. A pop-up showing the rewards you can claim on different chains will appear.
- To claim fee rewards on any single chain, click the button next to that chain.
- To aggregate and claim all fee rewards to a specific chain and claim them, click Aggregate & Claim.
Withdrawing Your Stakes
To withdraw your stake, you have to unbond them first. The unbonding process may take around seven days to complete.
- Go to My Rewards, My Delegations, and click the Unbond button.
- Alternatively, expand on a validator from the All Validators screen, find and click the Unbond button to continue.
- Next, enter the amount you want to withdraw, then click Confirm.
A pop-up will appear to tell you when your stakes will become withdrawable.
- Go to My Delegations to see the amount of the stake released. After unbonding, your stakes will move to Your Withdrawable Stakes.
- To move them to your Metamask wallet, click Withdraw and confirm the transaction on the pop-up.
Now, you can check your Metamask wallet to see your rewards.
Note: It may take a few minutes for the funds to display in your Metamask wallet.
Pros and Cons of Staking CELR
Pros
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Immediate Project Potential: By conducting its token sale on Binance Launchpad, Celer Network has gained a significant advantage, which has been proven in the current bear market by the success of recent token sales.
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Use Case: In the past year, the emergence and adoption of off-chain solutions (such as Lightning Network, Raiden, Plasma, etc.) have made significant progress in addressing one of the biggest challenges facing distributed ledger technologies, namely scalability. With only 4-7 Bitcoin transactions processed per second, mass adoption is hindered. If Celer Network can overcome existing solutions and execute its vision, it has the potential to increase its long-term value substantially.
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Strategic Partnerships: Celer Network has established impressive partnerships with some of the most influential institutions in the crypto market, including Pantera, DHVC, FBG Capital, Fenbushi Capital, 500 Startups, NGC, Waves, and others.
Cons
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Competitors: The scalability issue has been a persistent challenge in the cryptocurrency industry, and there are several strong contenders in the current market. It will be a daunting task for Celer to penetrate the off-chain solutions market and achieve widespread adoption.
CELR Wallets
CELR, being an ERC-20 token, can be stored in any wallet that supports Ethereum, and the choice of a wallet depends on the intended use and amount to be held.
Hardware wallets like Ledger are the most secure option for storing cryptocurrencies because they use offline storage and backup. However, they may require more technical knowledge and are more expensive, making them more suitable for experienced users storing more significant amounts of CELR.
On the other hand, software wallets, such as Math Wallet or imToken Wallet, provide an accessible and user-friendly alternative. They are available as a smartphone or desktop app and can be custodial or non-custodial. Although convenient, software wallets are less secure than hardware wallets and are better suited for novice users or smaller amounts of CELR.
Web or online wallets like MetaMask are free, easy to use, and accessible from multiple devices through a web browser. However, they are considered hot wallets and may be less secure than hardware or software alternatives. When using an online wallet, you entrust the platform to manage your CELR, so choosing a reputable service with a proven track record in security and custody is essential.
Is the Celer Network Secured?
The delegated Proof of Stake protocol is utilized by Celer Network to ensure the safety of its off-chain and on-chain operations. This protocol facilitates staking and voting, and stakeholders who participate in securing the network by staking CELR are rewarded.
Celer Network relies on the delegated Proof of Stake protocol, considered one of the most secure and affordable blockchain-based solutions, to provide developers and network users with superior security.
Summary of Staking CELR
The CELR staking process is a crucial part of the economic security of the Celer Inter-chain Message Framework. Staking your CELR with the Celer SGN allows you to gain transaction fee earnings and staking rewards.
We have proved our reliability as a node operator in the past years. Our experience and high-performance hardware ensure that Everstake meets the performance standards of Celer Network. By delegating your assets to us, you can ensure their safety.
Join us on Discord to chat about staking and Web3. In case of any queries, you can always reach out to our Celer Network Blockchain Manager on Twitter.
