How to Auto-Compound Staking Rewards in Cosmos Chains with REStake App

Staking in Cosmos networks allows users to support the security of blockchains while getting periodic token rewards. However, these rewards need to be manually restaked to increase the total amount of tokens participating in staking, a process that can be time-consuming and easy to forget.

The REStake App simplifies this routine by automating the compounding process. Once enabled, it periodically restakes your rewards on your behalf through a secure authorization flow. This way, you continue growing your staked balance automatically while maintaining full control of your assets.

In this article, we’ll explain what the REStake App is, how it works, the basics of compounding in staking, and guide you step-by-step through enabling auto-compounding using Cosmos Hub as an example.

What Is REStake App

REStake App is an open-source platform that automates the process of redelegating staking tokens within Cosmos-based blockchains. Instead of manually claiming and restaking your accumulated tokens, REStake allows you to authorize a validator to perform these actions on your behalf.

This automation is powered by the Authz module of the official Cosmos SDK, which enables one account (for example, a validator) to carry out specific transactions on behalf of another within strictly defined limits. In the case of REStake, a validator can only perform two actions:

1. WithdrawDelegatorReward – claim staking rewards that have been generated;
2. Delegate – restake these tokens to the same validator’s address.

No other permissions are granted, and the validator cannot access your wallet, transfer funds, or perform unrelated actions. The authorization is fully transparent, expires automatically after one year, and can be revoked at any time through your wallet interface.

All operations within REStake are executed via a connected wallet such as Keplr, Leap Wallet, or Cosmostation. You can review the smart logic and source code of REStake directly on GitHub.

Currently, the feature is supported for multiple Cosmos-based tokens, including ATOM, KAVA, INJ, Sei, MILK, and NIL, among others. Validators like Everstake have integrated REStake to make the restaking process smooth, transparent, and fully user-controlled.

How REStake Works

REStake operates through delegated authorization based on the Authz module of the Cosmos SDK. When you enable REStake, you grant a validator limited permission to automatically restake your distributed tokens at specific intervals.

Here’s how the process works in practice:

1. Authorization setup: You connect your wallet to the REStake interface and approve a one-time authorization transaction. This transaction defines what the validator is allowed to do on your behalf.
2. Scope of permissions: The validator can only execute two operations – claiming staking distributions and delegating them back to their own validator address. These permissions are narrowly scoped and cannot be extended to other actions or wallets.
3. Automation by validator: Once authorized, the validator runs a script that periodically identifies delegators who have granted REStake permission. The script triggers the compounding transactions on their behalf.
4. Full control for the user: Your funds remain under your wallet’s control at all times. The authorization can be revoked manually whenever you decide, or it expires automatically after one year.
5. Transparency and verification: You can review the current REStake status for each validator directly on restake.app, including the frequency of automatic restaking and the minimum threshold required to trigger it.

This system removes the need for repeated manual transactions, helping users maintain continuous participation in the staking process without compromising security or control.

Disclaimer

REStake App services rely entirely on each chain’s support for the Authz module of the Cosmos SDK. If this support is removed in a future upgrade, the REStake feature will no longer be available on that chain. Additionally, the REStake platform may add or remove support for specific chains at its own discretion. In such cases, only the auto-compounding functionality will be disabled, without affecting your existing stake.

What Is Compound Interest in Staking?

In staking, compounding means that your staking tokens generate new tokens, and those new tokens are periodically added back to your total staked amount. As a result, future distributions are calculated from a slightly higher base each time.

Unlike a simple model, where distributions are calculated only from your initial staked amount, compounding increases the total by continually including previously accumulated tokens. Over time, this effect becomes more visible: each cycle slightly increases the total staked balance, much like a snowball gradually growing in size.

For example:

• If you stake 100 tokens with a 10% annual rate, after one year you will have 110 tokens.
• In the second year, the 10% is calculated from 110, resulting in 121 tokens.

The more frequently your staking distributions are restaked; for example, weekly instead of annually, the faster the compounding effect accumulates.

How Compound Interest Is Calculated

The general formula for calculating compounded growth is:

A=P×(1+r/n)n×tA=P×(1+r/n)n×t

Where:

• P — the initial staked amount
• r — the annual reward rate (APR)
• n — the number of compounding periods per year
• t — the number of years

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Example

If the annual rate for ATOM is 16% and the compounding occurs weekly (52 periods per year), then:

• Staking 1,000 ATOM results in approximately 1,160 ATOM after one year.
• With weekly compounding during the year, it would be 1,174 ATOM instead.

Even though the difference seems minor over a single year, automated compounding over longer periods significantly optimizes the staking process without requiring any manual actions.

Before You Start: What You Need

Before enabling auto-compounding through REStake App, make sure that your setup meets the necessary conditions. Preparing these elements in advance ensures a smooth and secure process.

1. Supported wallet. You’ll need one of the wallets compatible with REStake: Keplr, Leap Wallet, or Cosmostation. Any of them can be used to connect, authorize, and manage your staking operations.
2. Tokens supported by Authz. The feature works only with tokens from Cosmos-based networks that have implemented the Authz module. You can connect whether your tokens are already staked or simply held in your wallet, REStake allows both initial staking and automated restaking.
3. Validator with REStake enabled. The validator you choose must have REStake functionality activated (e.g Everstake). You can verify this on the REStake App dashboard: once you select a network, validators that support REStake will display the authorization period and the auto-restake frequency.
4. Availability check. Confirm that the selected blockchain currently supports REStake. Some networks may temporarily suspend the feature after major upgrades. The availability status is displayed directly in the REStake interface for each supported chain.

When these conditions are met, you can proceed with the configuration and start using the automated compounding feature.

Step-by-Step Guide

The process of enabling REStake is identical across all supported wallets and tokens. Below, we’ll walk through the example of Cosmos Hub (ATOM) using the Keplr wallet.

Before you begin, ensure that your wallet is installed, has a positive token balance, and meets the requirements described above.

Step 1: Access REStake and Choose Your Blockchain

• Go to restake.app.
• From the main page, select your preferred blockchain (for example, Cosmos Hub).
• The selected block will display information such as the network’s REStake status and whether it supports Authz module.

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• If Full Authz support appears, it means the network fully supports REStake functionality.

Step 2: Approve Connection in Your Wallet

• Once you choose a blockchain, a pop-up window will appear in your connected wallet.
• Approve the connection between your wallet and the REStake platform by clicking Approve.

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• This action allows REStake to read your public staking information and prepare the authorization transaction.

Step 3: Pick a Validator

• After connecting, your current validator (if you are already staking) will automatically appear on the REStake dashboard.
• If you haven’t staked yet, use the search bar to find a validator, for example, Everstake and click View to open its details.

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Step 4: Review Validator Details

• Carefully check the validator’s parameters, including:

Auto-restake frequency (e.g., weekly)

Minimum rewards threshold that triggers the restake

• For example, Everstake performs auto-restaking every week once your accumulated ATOM amount exceeds 0.25 ATOM.

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Step 5: Enable REStake

• Open the Stake tab.
• If you are not yet staking ATOM, click Delegate, enter the amount you want to delegate, and confirm the transaction.
• Once staking is complete, click Enable REStake.

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• Specify the token amount to include in the authorization and set an expiry date (default: one year).

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• You can revoke the authorization at any time, regardless of the chosen duration.
• Confirm the transaction in your wallet.

After this step, the Grant Status on the validator’s page should display Active, meaning REStake is successfully enabled.

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Step 6: Verify REStake Status

Once the authorization is confirmed, close the validator window to return to the main dashboard. You’ll see your validator listed with the REStake Active status, indicating that your staking setup now includes automatic compounding.

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Conclusion

The REStake App provides a convenient and transparent way to automate the compounding process for Cosmos-based tokens. In just a few minutes, you can configure your setup so that your staking tokens are periodically restaked without any manual steps. This approach helps maintain continuous staking participation while keeping full control in your hands.

To restake other Cosmos tokens, simply select the respective blockchain in the REStake interface, confirm that it supports the feature, and follow the same procedure as described above for ATOM.

At the time of writing, REStake is available for several tokens supported by Everstake, including:

• ATOM (Cosmos Hub)
• KAVA (Kava)
• INJ (Injective)
• SEI (Sei Network)
• MILK (Milky Way)
• NIL (Nillion)

You can also restake ATOM directly through the Exodus wallet, where REStake functionality is integrated natively. Everstake has supported more than $7 billion in staked assets, and has crossed the threshold of over 1.6 million users across multiple blockchain networks.

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All metrics displayed on the website, including without limitations value of staked assets, total number of active users, rewards rates, and networks supported, are historical figures and may not represent the actual real-time data.