ZoneBitcoin EditorialI talk a lot about staking at the moment. I also tell you that there are several complexities in the summaries that we generally make.
😎 I tend to prefer staking sites that allow us to do it simply, without having to configure like the site MyContainerEg.
That said, there are other sites that allow you to better manage delegation and even my validation. This requires a bit more effort, but in the end, it turns out to be more profitable.
And of the sites that act as intermediaries, I think one of the best remains Stake Capital, which has the necessary infrastructure.
It's up to you to decide which type of platform you prefer according to your uses and your tastes, quite simply.
Also, we will look at LivePeer. For what? If I'm telling you about it today, it's because you can earn a 65% return. Yes, it's absolutely huge.
Here, we are going to talk about Stake Capital even if it turns out to be more complicated to do staking with this platform than with the other apps or sites that we have already mentioned in this blog.
(Also, please note that at the end of this article, I give you links to the official tutorials, just to do things right)
What is Livepeer and why staking with Stake Capital?
Livepeer is an open source, community-driven project that develops technology for streaming live video over the Internet.
The project is built on Ethereum, and it encourages anyone who wants to participate in securing the network, share their processing power, and share their bandwidth.
Contributors who participate in the project through staking are the ones who get paid. These contributors are called “transcoders” and they can earn rewards for their contribution.
It's a bit the same for all blockchains. As soon as you participate in its proper functioning, you are compensated, no matter how you do it.
Stake Capital is proud to be one of Livepeer's transcoders.
Token holders who also wish to participate in Livepeer without managing their own infrastructure can do so by linking their tokens to a transcoder and earn a share of the rewards generated.
Transcoders with the most tokens tied to them will have more transcoding work directed towards them, and delegates should also earn more tokens.
Stake capital charges a fee of 1% on the return achieved and remits 99% of the rewards to its delegates.
In addition, you should know that Stake Capital shares 50% of the revenues from transcoding work with its delegatees.
How to stake with StakeCapital?
To do this simple delegation tutorial, you will need:
- Access to your Ethereum address containing your Livepeer tokens.
- You will need approximately 0,0035 ETH (approximately $0,80) to execute 2 transactions at “10 Gwei” each. These values will fluctuate depending on the network condition.
- It will only last 5 minutes or even less!
Step 1: Withdraw your Livepeer tokens
If you currently store your Livepeer tokens (LPT) on an exchange, you will first need to withdraw your tokens to your personal Ethereum wallet, such as the Metamask web browser extension or a hardware wallet (Ledger nano S, Trezor, …).
If you are setting up your wallet for the first time, we recommend using Metamask.io.
In addition, I remind you that on Stake Capital, you will have very precise tutorials and even videos.
Step 2: Visit Stake Capital's Transcoder Page
To begin the process, visit Stake Capital's transcoder page.
Stake Capital's transcoder address is 0xa6a9eb29e786b5233bd99c0ba28be882fe954a0e, which you can find at the top left and center of your screen.
You should also see a BOND button, as shown in the image above.
The BOND button only loads if you have unlocked your metamask extension.
Note: If you have a hardware wallet, you can also import your account into metamask.
Click the BOND button to start the delegation process.
Step 3: Update Your Allowance
When you click BOND, you will be prompted to grant Livepeer's smart contract the right to transfer your LPT tokens.
Click the “Update your transfer allowance” button and set your transfer allowance.
We advise you to set a higher allocation than necessary, for example if you later decide to stake more chips.
Additionally, an Ethereum transaction will be required to complete this step.
Step 4: Play Your Chips
Return to the BOND page, where your transfer allowance will now be updated.
Enter the amount of LPT you want to delegate and click Submit, then confirm the transaction from your metamask.
Image for post
Click “Submit” and confirm the transaction from your Metamask account.
IMPORTANT NOTE! The metamask will be reset to a small amount of gas by default on your browser. Refer to the screenshots of step 2: update your allocation and repeat steps 3-4 before confirming the transaction, otherwise your transaction may take hours!
How much can you earn with staking?
As a delegate in this staking, you have two sources of income:
- Block rewards
- Cost sharing.
Currently, the expected return on block rewards is 150%, and Stake Capital takes a leading fee of 1%. The weakest on the market.
If you stake 1 LPT, you can expect to have around 2,485 LPT in 1 year. Note that this rate is not constant and fluctuates with the total number of LPTs linked to all delegators and the network as a whole.
Fee sharing is more difficult to predict because it is due to fees paid to Stake Capital for transcoding the videos.
These costs, moreover, are paid in Ether, and they set it at 150 Gwei per 4 seconds. Stake C capital will share 50% of the costs generated from its transcoding activity with its delegatees.
How to get your rewards?
To view your rewards, go to the Livepeer Explorer, then click on the My Account shortcut on the right of the screen, then click on staking, where you will see your stake and rewards.
(Note: you will need to be logged into your metamask account for your account to load)
How do I claim my rewards?
Rewards are paid after each spin (approximately every 24 hours) and will be automatically credited to your account, but you must claim your tokens by submitting an Ethereum transaction.
Because claiming tokens costs GAS, you can claim up to 20 at a time, meaning you don't have to claim them every day.
Your rewards are always yours and you can withdraw them at any time.
To view and claim your rewards, go to your account page on Livepeer Explorer.
Are there any risks associated with linking my tokens?
Livepeer will eventually implement slashing conditions to penalize transcoders that are offline.
The delegates would therefore be reduced in number, hence the importance of choosing reliable transcoders like Stake Capital.
Livepeer does not currently cut transcoders and delegates can delegate without risk.
When this changes, it will be communicated on social networks, that's for sure. It's up to you to stay connected to LivePeer.
Can I transfer my link to another transcoder?
Once you have linked your tokens with a transcoder, it is very easy to move them to another validator.
For example, let's say you want to transfer your tokens to Stake Capital.
Just like in step 1, visit Stake Capital's transcoder page and click on BOND.
If you enter 0 in the box, as shown in the screenshot below, and submit the transaction, your linked tokens will be transferred to Stake Capital's transcoder.
Submitting a 0 LPT binding will transfer your existing binding to this transcoder.
How can I unlink my tokens?
When you log in, your tokens are locked for at least as long as the UN-BOND period, which is currently a few weeks.
You can unlink your token from your account page in Livepeer Explorer.
To learn more about delegation with LivePeer, I suggest you read What Delegation is here.
In addition, as you may have noticed, to create this article, I simply took and translated the official tutorial published by Stake Capital.
You can find it in original version here: https://medium.com/stakecapital/livepeer-delegation-tutorial-f7673cc888db
You can also do it on another site with a lower reward but even simpler. Here is the tutorial for the Bison Trails site.
I hope this was useful for the geekiest among you. Otherwise, rest assured there are much simpler ways to earn tokens in passive mode thanks to staking.
