Kava (KAVA) Staking Guide

Kava (KAVA) Staking Guide

This guide will give you an overview on Kava and how to stake your KAVA tokens. Kava is a cross-chain DeFi platform that supports multiple applications and services for cryptocurrency users, with a focus on allowing users to borrow USDX stablecoins and deposit a variety of cryptocurrencies to begin earning a yield. Built on the Cosmos SDK, Kava makes use of a collateralized debt position (CDP) system to ensure stablecoin loans are always sufficiently collateralized. If a borrower fails to maintain their collateral above a required threshold, the Kava liquidator module will seize collateral from failing CDPs and send it to the auction module for sale. KAVA is the platform's utility token and also functions as a reserve currency for when the system is undercollateralized.

What is Kava?

Co-founded by Brian Kerr, Ruaridh O'Donnell, and Scott Stuart in 2018, Kava Labs set out to develop the Kava platform. The next year, the team held a token sale and raised $3 million through the sale of 6.5% of the total KAVA supply. In 2020, Kava's decentralized lending platform went live. Kava is a software protocol that uses multiple cryptocurrencies to allow users to borrow and lend assets without the need for traditional financial intermediaries. Built on the Cosmos SDK, Kava makes use of a collateralized debt position (CDP) system to ensure stablecoin loans are always sufficiently collateralized and that the value of USDX remained pegged to the U.S. dollar. If a borrower fails to maintain their collateral above a required threshold, the Kava liquidator module will seize collateral from failing CDPs and send it to the auction module for sale. KAVA is the platform's utility token and also functions as a reserve currency for when the system is undercollateralized.

Why should I stake my KAVA?

Staking is the process of locking up a digital asset (KAVA) to provide economic security for a public blockchain, therefore staking your KAVA helps secure the PoS Kava network. Further, most PoS blockchains are initially inflationary in nature, so staking your KAVA 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 KAVA, you have the power to contribute to the security and governance of Kava network through staking and voting on governance proposals.
  • Earn rewards. When you stake to a validator, you are contributing to the security of the network and are rewarded with KAVA through staking rewards.
  • Vote for the future. Staking KAVA 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 KAVA?

Since Kava utilizes a PoS consensus mechanism, you can delegate any amount of KAVA you hold to a "validator", making you the "delegator". Validators on the Kava blockchain (and most other PoS blockchains) validate the network by approving transactions. The more KAVA a validator holds, the more powerful they are and the more "vote" the have in the network, which allows them to validate more transactions, thus earning more rewards. By delegating your KAVA, you trust the selected validator to be a good network participant. From the earned rewards, the validator gives a certain percentage (stipulated by the network) back to the delegators that have delegated (staked) their KAVA to them.

That's how you earn rewards.

How much can I earn from staking my KAVA?

At the time of writing, the APY (Annual Percentage Yield) for staking KAVA is 34%.

For the most up-to-date rewards rate, you should check out the Steakwallet app.

What is the minimum amount of KAVA I can stake?

To stake KAVA, a minimum of 0.05 KAVA is required. This ensures you can stake and also pay the Kava network transaction fee. You should always make sure to have enough KAVA available to pay for network fees, as all blockchain interactions (sending transactions, staking, unstaking, and interacting with other dApps) require them.

How do I stake my KAVA?

When you stake your KAVA, you're able to choose how much of your KAVA you want to delegate to the validator. You can stake any amount of KAVA, for which you immediately start accumulating rewards. You will not be able to use the staked KAVA for anything else or sell them during the period the KAVA are staked.

Make sure you have enough KAVA in your wallet to pay for network transaction fees.

Please note: You will need to manually claim your rewards and re-stake them to earn the maximum possible rewards. You can learn more about manual reward claiming here, as well as look to the step-by-step tutorial in our guide below. 👇

Which validator is my KAVA staked to?

Currently, if you stake your KAVA 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 KAVA?

When you unstake your KAVA, you can decide on the amount you want to unstake. Once you confirm the amount, your KAVA will now be "unbonding" from the validator. This process takes 21 days, during which your unstaked KAVA is not earning any rewards. When you unstake your KAVA, any unclaimed rewards you may have will be auto-claimed.

Please note: When you unstake KAVA from any given validator, you can unstake at most 7 times in a 21 day period. If you try more, the unstake will fail. You must wait for one of the previous unstaking entries to expire.

When will I start earning rewards?

When you start staking your KAVA and the delegation is confirmed, you will start earning rewards on the staked amount instantly.

How do I claim my staking rewards?

On Cosmos SDK-based blockchains, you need to manually claim earned rewards. On Steakwallet, there is a “Claim Rewards” button right below your staked balance that shows your earned rewards available for claiming. You can learn more about manual 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 KAVA staking safe?

Given that Steakwallet is a non-custodial wallet, you maintain full custody of your assets and always remain in control.

While staking KAVA is relatively safe, and while we work together with Figment (one of the most reliable validators in the industry), there's always a risk of slashing. If a slashable event happens, you could lose a portion of your staked KAVA.

There are two ways in which you could be slashed:

  1. If you delegate to a validator that is offline for over 20 hours (assuming a 7.22s block time), you will lose 0.01% of the tokens you have delegated to that validator.
  2. If you delegate to a validator that signs the same block twice with the same key, you will lose 5% of the tokens you have delegated to that validator.‌

However, this is a very rare occurrence. Staking is one of the safest way to earn rewards in crypto.


Staking KAVA through Steakwallet: Step-by-Step Guide‌

Staking Semantics

Staking KAVA tokens is relatively straight forward. Once you stake your tokens, your KAVA immediately begins to earn rewards. KAVA staking rewards must be manually claimed and restaked. When unstaking, there is a 21 day unbonding period, after which you can withdraw your KAVA.

Key KAVA Staking Considerations:

  • Rewards are distributed daily
  • 34% reward rate (make sure to stay up to date on the Steakwallet app)
  • 21 day unbonding period
  • Rewards must be manually claimed and restaked
  • Make sure to leave a little KAVA leftover in your wallet for bonding and unbonding fees (note that Steakwallet automatically leaves a small amount of KAVA in your wallet to account for fees)

For this guide, we will walk you through the steps of setting up your Steakwallet from scratch, staking your KAVA, 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 Kavafrom 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 KAVA address so that you can deposit KAVA into your wallet.
  • Once you have funded your wallet with KAVA, 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 KAVA balance you wish to delegate. Important reminder: Be sure to leave some KAVA left over for transaction fees. Select the amount of KAVA 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 KAVA through Steakwallet! If something went wrong, you'll receive an error screen.
  • You are required to manually claim your KAVA rewards. To manually claim staking rewards, navigate to the token profile page. Beneath where it shows your Staked Balance, there will be a box labeled “Claim Rewards”. If you have unclaimed rewards that have accumulated, then the amount you have earned will be listed. To claim, simply hit “Claim” twice and voilà – your rewards will now be reflected in your Available Balance.
If you don't claim your rewards and re-stake them, you're missing out on some extra compound yield and will not earn the highest possible APY. You can learn more about manual reward claiming here.

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.


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