Hedera is a decentralized public network that employs a patented hashgraph consensus algorithm to achieve high-speed, secure, and fair transactions. It enables individuals and businesses to develop and deploy decentralized applications on its platform, offering features such as smart contracts, file storage, and cryptocurrency. Hedera’s governance model is designed to ensure stability, security, and decentralization, with a council of globally recognized organizations overseeing the network’s development and management. The token that powers the Hedera network is HBAR and it is exclusively used for trading, staking, delegating, paying transaction fees, and governance votes on the network. This tutorial will show you how to Liquid stake your HBAR tokens on the Hedera network.
TL;DR
- View the current HBAR liquid staking APR here
- Use the HBAR Liquid Staking Calculator to estimate your rewards
- Lockup: No lockup
- Average commission: –
- Minimum amount required for staking: 0.01
- Estimated time needed to stake your HBAR in your wallet: 3 minutes
- Recommended HBAR staking wallets: Ledger, HashPack
- Steps to stake:
- Step 1: Make sure you have deposited your HBAR into your HashPack wallet.
- Step 2: Go to Hedera.Staderlabs.com and connect your wallet
- Step 3: Enter the amount of HBAR you want to stake
- Step 4: Click ‘Stake HBAR’ and sign the transaction
Prerequisites
Where to buy HBAR
You can get HBAR tokens at a cryptocurrency exchange, at a DEX, or within select wallets. You should always do your own research when selecting a reputable cryptocurrency exchange. For best security, it is not recommended to leave your tokens on an exchange, but transfer them to your non-custodial or cold/hardware wallet after procuring them.
- Coinbase
- Binance
- Crypto.com
- KuCoin
- OkX
- Kraken
- Gemini
- Uniswap
- Poloniex
Hedera wallets
Hedera has a variety of non-custodial wallets for you to choose from. We recommend that you use a hardware wallet such as Ledger otherwise we suggest using Metamask wallet. Compatible wallets include:
Selecting Hedera nodes
You do not need to select a specific node with liquid staking your HBAR.
How Staking Rewards for Hedera (HBAR) are Generated
Learn how rewards are generated in the FAQ section titled ‘How are the rewards generated’’ here.
How to Liquid Stake HBAR
Step 1: Make sure you have a HashPack wallet
As a popular wallet in the Hedera ecosystem, HashPack offers users the ability to stake tokens, access blockchain apps, and manage multiple tokens in one wallet. Simply connect your Ledger to HashPack wallet or use HashPack wallet directly to stake HBAR. Install the HashPack browser extension and deposit your tokens into this wallet before continuing onto step 2.
Step 2: Head to the Staderlabs staking portal and stake your HBAR
After depositing your HBAR into your Hashpack wallet, go to Hedera.Staderlabs.com and connect your wallet. Follow the steps below to get started:
- Make sure you have deposited your HBAR into your HashPack wallet.
- Go to Hedera.Staderlabs.com and connect your wallet
- Enter the amount of HBAR you want to stake
- Click ‘Stake HBAR’ and sign the transaction
Please note:
- We recommend users to stake a minimum of 0.01 HBAR.
- You will be able to withdraw all your staked HBAR by unstaking all the HBARX. To unstake all HBARX use the ‘max’ button on the unstake section in the dApp and wait for the 1 day unbonding period to withdraw it into your wallet.
- Your funds are fully available to be used while they are staked
Congratulations! You have now liquid staked your HBAR tokens for HBARX and you will start earning those juicy staking rewards.
Step 3: Track staking portfolio
- Track your HBARX staking rewards on the Stader dApp.
- Monitor governance proposals on Hedera network that may impact the staking mechanism.
- Track the current and historical reward rates, validator count, number of unique Hedera staking wallets, and staking ratio of the Hedera network by visiting the Hedera asset page. To make better staking decisions, it’s essential to understand these relevant data points. To learn how these data points could impact your staking rewards, please read more in the FAQ sections named “How do I choose Hedera validators” and “How are the rewards generated” on the Hedera asset page.
Conclusion
Staking is essential to Proof-of-Stake blockchains and comes with many benefits for investors and the network:
- Investors earn yield from token emissions and/or transaction fees.
- Stakers become eligible for airdrops as many networks prioritize granting these benefits to them.
- Staking helps to secure the network
- Staking from multiple participants helps decentralize the network
- Stakers can participate in governance, as many PoS networks allocate governance rights based on the amount of tokens staked.
Congratulations! You are now not only getting the most out of your investment with compounded returns. YOU are also (in-)directly contributing to the decentralization, and the network security of Hedera and thus contributing to the long-term success of your investment! Hedera needs active stakers like you to become successful long-term.
Now share the tutorial with your friends so they can get to start staking as well!
Lastly, don’t forget to check out the Hedera (HBAR) asset page for more insights into staking HBAR, and drop us a message if you found this tutorial useful. Happy staking!