Cryptocurrencies can be used in three kinds of yield-bearing activity. These have cumulative trust assumptions -
We believe staking yield is the most attractive risk-adjusted source of yield in crypto for two reasons:
Proof-of-stake ecosystems do not have an anchor in the real world. This means that the staking yield rate denoted in native terms is completely decoupled from any kind of factor in the wider economy. For staking, endogenous capital (e.g. ETH) is the only factor of production.
This is a difference to proof-of-work (PoW) systems, where electricity and hardware costs serve as an unbridgeable anchor to the real economy, directly affecting a miner’s yield rate. It is also different from most CeFi and DeFi yield sources, which depend more heavily on user activity.
The above implies that staking can be an uncorrelated yield source for two kinds of investors — those that are bullish long-term and denominate their holdings in native units, and those that are hedged against the price risk of the staked asset.
The token price risk may be hedged out through on- or off-chain solutions. The former case has the advantage of transparency, reflected in an improved counterparty risk assessment and iron-clad terms. With some of the largest lending desks in the space embroiled in a liquidity crisis, this is a significant factor. Validators are ideally positioned to execute on-chain hedging, as they directly interface with the staking yield source and thus no custody transfer, i.e. additional risk, is required to interface with a hedging solution.
One increasingly popular on-chain hedging solution is a “staking yield interest rate swap”. This allows validators to swap token-denominated staking yield for a stablecoin, typically USDC, locking in a stable and predictable income for a staking client. The associated risk is very minor as neither the validator nor the swap counterparty takes custody of the principal — the worst case, a counterparty default, would reduce to the price risk on the yield earned on the staked notional. Chorus One can leverage Alkimiya, the leading protocol for on-chain capital markets, to execute this type of hedge.
A second way to hedge is by using the staking yield to finance classic options-based strategies. For example, a zero-cost collar options package may incorporate the staking yield in a way that enables an asymmetric pay-off.
Chorus One is invested in & advises a range of solutions optimizing staking yield for return (i.e. MEV) and risk (i.e. hedging). Reach out to us at sales@chorus.one to learn more about how these can be tailored to fit your use case.
About Chorus One
Chorus One is one of the biggest institutional staking providers globally operating infrastructure for 35+ Proof-of-Stake networks including Ethereum, Cosmos, Solana, Avalanche, and Near amongst others. Since 2018, we have been at the forefront of the PoS industry and now offer easy enterprise-grade staking solutions, industry-leading research, and also invest in some of the most cutting-edge protocols through Chorus Ventures. We are a team of over 50 passionate individuals spread throughout the globe who believe in the transformative power of blockchain technology.
For more information, please visit chorus.one
It’s quite simple to delegate purchased Tezos coins (XTZ). The main steps for delegating Tezos remain the same for most wallets
Let us see an example of each of these steps using Atomex wallet
Go to https://wallet.atomex.me/. Select My Wallets in case you already have an account otherwise click on CREATE NEW WALLET
If you are creating a new wallet then follow the onscreen instructions.
There you go! You have your Tezos wallet.
Press Wallets, select Tezos and press Delegate.
Upon the successful completion of your transaction, you will see the success message as below
Congratulations now you are baking your XTZ!!
After you click “Delegate”, the corresponding operation is sent to the blockchain and your delegation status becomes “Pending”. You can check that everything went well in Tezos explorer.
As you can see, your delegation is not applied immediately right after delegating. You need to wait a while before it’s confirmed. There are three stages of delegation:
This stage lasts 2 cycles = ~ 6 Days
1 cycle = 8192 blocks = 4096 minutes (each block every ~30 seconds) = ~2.8 days
In this stage you’ve successfully delegated, but your rights are not transferred to the baker yet. This delay is required to prevent the network from some forms of abuse. See more details in the Tezos documentation.
This stage lasts 5 cycles = ~ 14 Days
Your delegation is confirmed and the baker received future baking rights (to produce and endorse future blocks). So, now you know that you will definitely participate in Tezos staking in the near future and therefore you can estimate future staking rewards.
Now you are completely in Tezos staking and earning rewards. As you can see, you have to wait ~20 days after delegating to start staking.
All Tezos staking rewards are credited to the baker and not to delegators directly. Moreover, every time baker receives rewards, those rewards are frozen for the next 5 cycles (~14 days), so the baker can’t spend them. Only after ~14 days rewards are unfrozen and the baker can transfer it to someone else.
That’s why you can see that Tezos staking rewards for cycle N usually comes in cycle N + 6 (after ~17 days):
Every time the balance of a delegated account is changed (e.g. you raise additional funds, or withdraw funds, or even receive reward payments) you have to wait the same time as described above (37 or 23 days) until these changes are applied.
We are excited to announce that we have onboarded Gnosis Chain as validators. Gnosis is one of the first Ethereum sidechains in existence and has kept close to its values from inception. Gnosis Chain is EVM-based and secured by over 100k validators around the world. It hosts a very diverse validator set and it is propped up by the community governance of GnosisDAO to ensure it remains credibly neutral at a much lower price point than Ethereum mainnet. It powers an ecosystem of DApps including POAP (Proof of Attendance Protocol, the original NFT protocol), Dark Forest (a fully decentralized strategy game, built with zkSNARK technology), Giveth (public goods, peer-to-peer direct funding platform), and much more.
Gnosis has a long history of working alongside Ethereum, although Gnosis Chain is technically a new blockchain. It first specialized in prediction markets, decentralized exchanges, and wallet solutions, and joined expertise with xDAI Chain in 2021 to provide fast and inexpensive transactions. This newer chain has some great features including a block time of 5 seconds (making it ideal for everyday payments), a native stablecoin, a low-fee system (gas fees cost .01 xDAI per 500 transactions), Ethereum compatibility/interoperability, and much more. Gnosis Chain already successfully went through its Merge upgrade and on December 08, 2021, became a full Proof-of-Stake network.
Gnosis Chain runs on a dual-token framework: xDAI, which is a wrapped version of MakerDAO’s algorithmic stablecoin DAI, is the payment coin of the network. By using a stablecoin for payments and calculating gas in xDAI, Gnosis Chain can keep fees extremely low. On the other side, GNO is the staking and governance token for GnosisDAO, allowing validators and delegators to secure the chain. Currently, there are 342k GNO staked for on-chain voting, making Gnosis Chain the third most decentralized blockchain after Bitcoin and Ethereum. Chorus One is thrilled to support Gnosis Chain in our quest to expand the PoS economy.
Block Explorer: https://gnosisscan.io/
Validating Rights: The minimum requirement to run a validator is 32 mGNO (1 GNO). Gnosis follows Ethereum’s Proof-of-Stake rewards system. You can learn more here.
Staking yield: 15.78%
Slashing: Staked tokens are subject to slashing.
To stake GNO or to set up a whitelabel validator, reach out to sales@chorus.one
Band Protocol staking can be done through Ledger hardware wallets. When you stake your BAND tokens with Chorus One you can earn rewards up to 11.2% per annum.
The Band Protocol is a platform to aggregate and connect real-world data to smart contracts. Band seeks to deliver trusted information to cross-chain applications via its network of validator nodes.
By delegating BAND tokens to a BandChain validator like Chorus One, you are able to earn staking rewards for indirectly participating in securing the network and responding to oracle data requests.
Band oracles are integrated into major blockchains and applications including Binance Smart Chain, ICONS, Nervos and Others.
Please note that the unstake period is 21 days. This means that you can only unstake and withdraw coins to your wallet after this time has passed. We wish you profitable staking!
You will first need to install the Cosmos application (ATOM) from the Ledger Live Directory as the Band Protocol uses Cosmos SDK.
Go to the block explorer website Cosmocan.io and click the Connect button in the upper right corner as shown in the image.
Now choose a connection method. In our case it’s Ledger — Cosmos. Ledger will verify that the site you are connecting the hardware wallet to is genuine. Leave HD Derivation Path unchanged and click Connect to Ledger
Confirm the action on the Cosmocan.io Band Protocol browser page to use the Ledger device in that browser. Copy the addresschrome://flags/#enable-experimental-web-platform-features by clicking the OK button in the pop-up window.
Then enable the Experimental Web Platform Features option.
Restart your browser.
Once opened, Cosmoscan.io will ask for permission to connect to the HID device. Click Connect.
Success! The hardware wallet is successfully connected.
To get the BAND address, on the main page of the Cosmoscan.io browser, click on the profile icon in the upper right corner, copy the displayed address and send tokens to it.
After the coins arrive in the wallet, you can proceed to BAND staking.
You need to select a validator to delegate your BAND tokens. Go to the Validators tab (which you saw in the screenshot). Then select a validator from the list, or just start typing its name. We suggest voting for Chorus One — a reliable and proven validator present on over 25 networks. We have highly available infrastructure and high uptime (uninterrupted functioning time).
Click on the validator to continue.
On the page, click Delegate.
Enter the amount of tokens you want to delegate manually, or just click Max to stake the entire amount at once. Usually, you don’t need to enter a Memo, but if the validator has this parameter, then you need to enter it as well. After that click Next. <button>Next</button>
Click the Broadcast button. A notification will appear on your Ledger device. Confirm the transaction on the device.
If you have successfully staked Band tokens, you will see the following message:
Done! After the delegation, by clicking the View Details button, you can open a page with detailed information about the transaction.
