This guide will give you a comprehensive overview on The Graph and how to stake your GRT. The Graph is an indexing protocol for querying data for networks like Ethereum and IPFS, powering many applications in both DeFi and the broader Web3 ecosystem. The mission is to bring reliable decentralized public infrastructure to the mainstream market. Anyone can build and publish open APIs, called subgraphs, that applications can query using GraphQL to retrieve blockchain data. Many Ethereum applications have already built subgraphs and use them today, including Audius, Uniswap, Opyn, ENS, DAOstack, Synthetix, Moloch, and more.
What is The Graph and what makes it unique?
The Graph was founded by Yaniv Tal, Jannis Pohlmann, and Brandon Ramirez in January 2019, after they had encountered issues while creating smart contracts on Ethereum. Blockchain data is easily accessible to Ethereum network developers, but looking for the right information is complex and could slow down applications. The Graph founders came up with the idea of creating a data-indexing protocol for the Ethereum network (and subsequently, Filecoin's IPFS). The mission of The Graph is to bring reliable decentralized public infrastructure to the mainstream market. Anyone can build and publish open APIs, called subgraphs, that applications can query using GraphQL to retrieve blockchain data. Initially, The Graph had seven initial application partners at launch, but have since grown and have hundreds of application partners. Many Ethereum applications have already built subgraphs and use them today, including Audius, Uniswap, Opyn, ENS, DAOstack, Synthetix, Moloch, and more.
To ensure economic security of The Graph network and the integrity of data being queried, participants use Graph Token (GRT). GRT is a work token that is locked-up by Indexers, Curators, and Delegators in order to provide indexing and curating services to the network. GRT is an ERC-20 token on the Ethereum blockchain, used to allocate resources in the network. Active Indexers, Curators, and Delegators can earn income from the network proportional to the amount of work performed and of GRT staked. Indexers earn indexing rewards (new issuance) and query fees, while Curators earn a portion of query fees for the subgraphs they signal on. Delegators earn a portion of income earned by the Indexer they delegate to.
Please scroll down to the bottom of this article for the full Steakwallet staking guide, including a step-by-step walk through.
Why should I stake my GRT?
Staking is the process of locking up a digital asset (GRT) to provide economic security for a public blockchain, therefore, staking your GRT helps secure the Proof of Stake ("PoS") The Graph and subgraph networks. Further, most PoS blockchains are initially inflationary in nature, so staking your GRT prevents you from getting inflated out of your position as you earn rewards for helping secure the network and validate transactions. Lastly, you can participate in network governance.
- Secure the network. With GRT, you have the power to contribute to the security and governance of the Graph network through staking and voting on governance proposals.
- Earn rewards. When you stake to an Indexer, you are contributing to the security of the network and helping queries get solved, and for that are rewarded with GRT through staking rewards.
- Vote for the future. Staking GRT allows you to vote on governance proposals and contribute to making decisions on the future and direction of the network.
What happens when I stake my GRT?
Since The Graph utilizes a PoS consensus mechanism, you can delegate any amount of GRT you hold to a "validator", making you the "delegator". However, in the Graph ecosystem, validators are called “Indexers”. Indexers on the Graph blockchain validate the network by approving transactions. The more GRT a validator holds, the more powerful they are and the more "vote" they have in the network, which allows them to validate more transactions (or queries), thus earning more rewards.
By delegating your GRT, you trust the selected Indexer to be a good network participant. From the earned rewards, the Indexer gives a certain percentage (stipulated by the network) back to the delegators that have delegated (staked) their GRT to them.
That's how you earn rewards.
How much can I earn from staking my GRT?
At the time of writing, the APY (Annual Percentage Yield) for staking GRT is 15.10%.
For the most up-to-date rewards rate, you should check out the Steakwallet app.
What is the minimum amount of GRT I can stake?
There is no minimum amount required to stake GRT. However, since it is an ERC20 token that runs on the Ethereum blockchain, you need to have a sufficient amount of ETH in your wallet to stake. You should always make sure to have enough ETH available to pay for network fees, as all blockchain interactions (sending transactions, staking, unstaking, and interacting with other dApps) require them. Currently, there is a lot of activity on the Ethereum blockchain which makes transactions more expensive. Therefore, it’s advisable to only stake a larger amount of GRT, as on a small amount the network fees may eat up all the potential rewards earned.
How do I stake my GRT?
When you stake your GRT, you are able to choose how much of your GRT you want to delegate to the validator. You can stake any amount of GRT, for which you immediately start accumulating rewards. You will not be able to use the staked GRT for anything else or sell them during the period the GRT are staked.
Make sure you have enough ETH in your wallet to pay for network transaction fees.
Please note: You will not need to manually claim your rewards as the Graph network automatically claims and re-stakes any rewards, thus allowing you to easily compound your earnings.
Which validator is my GRT staked to?
Currently, if you stake your GRT with Steakwallet your stake gets delegated to validators run by Figment. Figment is a reliable partner and one of the most trusted validator providers in the industry. We plan to offer more optionality in the future.
How do I unstake my GRT?
When you unstake your GRT, you can decide on the amount you want to unstake. Once you confirm the amount, your GRT will now be "unbonding" from the Validator. This process takes 28 days, during which your unstaked GRT is not earning any rewards. When you unstake your GRT, you will also automatically receive all your compounded rewards.
When will I start earning rewards?
When you start staking your GRT and the delegation is confirmed, you will start earning rewards on the staked amount instantly.
How do I claim my staking rewards?
On The Graph, your rewards are automatically claimed and added to your staked balance. Therefore, your rewards auto-compound without you needing to do anything. If you wish to receive your rewards, you need to unstake your balance. You can learn more about automatic reward claiming here, as well as look to the step-by-step tutorial in our guide below.
Does Steakwallet charge a fee or take a cut of my rewards?
No. Steakwallet never charges a fee or takes a cut of your staking rewards.
Is GRT staking safe?
Yes, GRT staking is relatively safe and there is no slashing risk for your staked assets. Thus, your delegated GRT cannot be destroyed. However, when you initiate your delegation, 0.5% of the amount that you delegate will be burned. This is intended to discourage changing delegations, and it’s expected that your earnings will enable you to recover from this burn fairly quickly.
However, if your indexer does not perform optimally, you will not earn fees. There are two ways this could happen. If your Indexer fails to respond quickly or accurately to query requests, you will lose staking income opportunities. Similarly, indexers that price queries too high will not be competitive enough to be selected to do query work.
More broadly, an Indexer that does not index high-traffic subgraphs will not be an optimal earner.
Staking GRT through Steakwallet: Step-by-Step Guide
Staking GRT tokens is relatively straight forward. Once you stake your tokens, your GRT immediately begins to earn rewards. GRT staking rewards are automatically claimed. Since your earned rewards are automatically added to your total staked balance, your staking income will compound — meaning, you will earn rewards on top of your rewards. When unstaking, there is a 28 day unbonding period, after which you can withdraw your GRT.
Key GRT Staking Considerations:
- 15.10% reward rate (make sure to stay up to date on the Steakwallet app)
- 28 day unbonding period
- Rewards are automatically claimed
- Make sure to leave ETH leftover in your wallet for bonding and unbonding fees
For this guide, we will walk you through the steps of setting up your Steakwallet from scratch, staking your GRT, and claiming your rewards. If you already have your Steakwallet set up, you can scroll down to the staking section.
Steakwallet can be downloaded on either the iOS App Store or Google Play Store. Steakwallet is a non-custodial wallet, and requires you to keep track of your own Secret Phrase. You can learn more about non-custodial wallets and Secret Phrase management here.
- To begin staking with Steakwallet, you first need to download the wallet from either the iOS App Store or Google Play Store onto your mobile device. Once downloaded, you can open the app and begin the setup process.
- Start by creating your Steakwallet account and follow the steps on the screens below. Simply create a new wallet, agree to the terms, and backup your 12 word phrase. It is extremely important that you backup your Secret Phrase. Be sure to write down and safely secure your wallet's 12 word backup phrase. This is the only way to recover your wallet. Once you have created your wallet and backed up your 12 word phrase, you are ready to use Steakwallet.
- Now that you have set up your account, welcome to the Steakwallet home screen. In our Prime Yields section, you can find the best opportunities to put your money to work and scroll through the many different tokens that you're able to manage in-app (from simple token management, to yield opportunities via Yearn Vaults and our signature 3-click native staking integrations).
- Select “The Graph” from the list and you'll arrive at the token profile screen, showing you recent performance, available balance, staked balance, and other relevant staking information.
- Click “Receive” to bring up your GRT address so that you can deposit GRT into your wallet.
- Once you have funded your wallet with GRT, head back to the staking section on the token profile screen.
- When you are ready to start staking, click “Stake”.
- From here, select how much of your GRT balance you wish to delegate. Important reminder: Be sure to leave some GRT left over for transaction fees. Select the amount of GRT you want to stake, click “Preview Stake”, and then confirm the stake on the next screen.
- After waiting a couple of seconds for confirmation, your stake will be confirmed and you can view the transaction on the explorer. Congrats, you are now staking your GRT through Steakwallet! If something went wrong, you'll receive an error screen.
- GRT is subject to automatic reward claiming. Locked GRT tokens can be staked to earn more GRT, and you will see your overall balance increase without having to do anything. Since your earned rewards are automatically added to your total staked balance, your staking income will compound — meaning, you will earn rewards on top of your rewards.
This way, you don't need to do anything and earn the highest possible APY (Annual Percentage Yield).
More on Steakwallet
Steakwallet is a mobile-first, multi-chain, non-custodial wallet that allows users to easily stake tokens and earn rewards. Steakwallet can be downloaded on the iOS App Store or Google Play Store, allowing you to instantly secure, send, receive, and natively stake over 11 different cryptocurrency assets. Being non-custodial, Steakwallet gives you full ownership of your assets and wallet private keys. With Steakwallet, you are always in control of your assets.
THIS WEB PAGE (INCLUDING THE ARTICLE CONTAINED HEREIN), IS FOR INFORMATIONAL PURPOSES ONLY. PLEASE DO NOT CONSTRUE ANY SUCH INFORMATION OR OTHER MATERIAL CONTAINED ON THIS WEB PAGE AS LEGAL, TAX, INVESTMENT, FINANCIAL, OR OTHER ADVICE. THIS WEB PAGE AND THE INFORMATION CONTAINED HEREIN IS NOT A RECOMMENDATION OR ENDORSEMENT OF ANY DIGITAL ASSET, PROTOCOL, NETWORK, OR PROJECT. HOWEVER, STEAKWALLET (INCLUDING ITS AFFILIATES AND/OR EMPLOYEES) MAY HAVE, OR MAY IN THE FUTURE HAVE, A SIGNIFICANT FINANCIAL INTEREST IN, AND MAY RECEIVE COMPENSATION FOR SERVICES RELATED TO, ONE OR MORE OF THE DIGITAL ASSETS, PROTOCOLS, NETWORKS, ENTITIES, PROJECTS, AND/OR VENTURES DISCUSSED HEREIN.
THE RISK OF LOSS IN CRYPTOCURRENCY, INCLUDING STAKING, CAN BE SUBSTANTIAL AND NOTHING HEREIN IS INTENDED TO BE A GUARANTEE AGAINST THE POSSIBILITY OF LOSS. THIS WEB PAGE AND THE CONTENT CONTAINED HEREIN ARE BASED ON INFORMATION WHICH IS BELIEVED TO BE RELIABLE AND HAS BEEN OBTAINED FROM SOURCES BELIEVED TO BE RELIABLE, BUT STEAKWALLET MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AS TO THE FAIRNESS, ACCURACY, ADEQUACY, REASONABLENESS, OR COMPLETENESS OF SUCH INFORMATION. STEAKWALLET CANNOT BE RESPONSIBLE, IN ANY WAY WHATSOEVER, FOR YOUR USE OF THE INFORMATION CONTAINED IN OR LINKED FROM THIS WEB PAGE. DO NOT RELY UPON ANY INFORMATION FOUND ON BLOG. STEAKWALLET.FI OR SUPPORT.STEAKWALLET.FI WITHOUT INDEPENDENT VERIFICATION.