What is Fantom?
Fantom is a fast, secure, and scalable Layer 1 blockchain built for decentralized applications. Its Lachesis consensus algorithm utilizes a directed acyclic graph (DAG) structure to enable concurrent processing of transactions, allowing for higher transaction speeds and throughput compared to traditional PoS blockchains. The vision of Fantom is to create a decentralized network that can power the next generation of decentralized applications, with the aim of solving the scalability and throughput challenges of blockchain technology. The token that powers the Fantom network is FTM 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 stake Fantom (FTM) tokens on the Fantom network.
TL;DR
- View the current FTM staking APR here
- Use the FTM Staking Calculator to estimate your rewards
- Lockup: 7 days
- Average commission: 15%
- Minimum amount required for staking: 1 FTM
- Estimated time needed to stake your FTM in your wallet: 5 minutes
- Recommended Fantom staking wallets: Ledger, fWallet
- Steps to stake:
- Go to the fWallet Staking Dashboard and select ‘Staking’ on the left panel.
- Click ‘Add Delegation’ and select a validator from the table. If you are uncertain about how to choose a validator, refer to our FAQ for guidance on selecting a validator.
- Once you have chosen a validator and decided on the number of tokens you would like to stake, click ‘Continue’ and sign the transaction.
- Users have the option to lock their delegated Fantom up for up to 365 days. The longer you lock it, the higher your APR will be. Users can mint sFTM in a 1:1 ratio to your staked FTM and use it as a collateral in Fantom Finance, their all-in-one DeFi suite.
Prerequisites
Where to buy FTM
You can get FTM 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.
Fantom (FTM) wallets
Fantom 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 fWallet. Compatible wallets include:
How to connect Fantom (FTM) to Metamask
When setting up your account using the official fWallet, it will automatically create an account for you which will be connected to the network. However, when using Metamask you will need to add the network to the wallet. Follow the steps below to add it:
- Open Metamask
- Click the network button at the top
- Click ‘Custom RPC’ from the bottom of the list
- Input the following information:
- Network Name: Fantom Opera
- RPC Url: https://rpc.ankr.com/fantom/
- ChainID: 250
- Symbol: FTM
- Block Explorer URL: https://ftmscan.com/
Selecting Fantom validators
Please refer to the FAQ section titled ‘How do I choose Fantom (FTM) validators’ on this page when selecting FTM validators. Also, you may want to utilize our criteria for verifying providers through the Staking Rewards Verified Staking Provider (VSP) Program.
How Staking Rewards for MultivserX (FTM) are Generated
Learn how rewards are generated in the FAQ section titled ‘How are the rewards generated’’ here.
How to stake Fantom (FTM)
Step 1: Make sure you have a fWallet
Stake your FTM tokens using Ledger, fWallet, Trust wallet, amongst others. We will use the fWallet in this staking tutorial.
As a popular wallet in the Fantom ecosystem, fWallet offers users the ability to stake tokens, access blockchain apps, and manage multiple tokens in one wallet. Simply connect your Ledger to fWallet or use fWallet directly to stake FTM. Install the Fantom browser extension and deposit your tokens into this wallet before continuing onto step 2.
Step 2: Go to the Fantom staking portal and choose a validator
After entering your wallet, start staking and select validators. We recommend choosing validators from our Verified Staking Provider (VSP) Program. VSP validators have a blue tick on their logo here.
If you are unsure of how to choose a validator, please see the FAQ section named ‘Selecting Fantom validators’ above this one to help you decide.
Open up the fWallet and follow the steps below:
- Go to the Fantom Staking Dashboard and make sure your FTM tokens are on your fWallet.
- Click the ‘Staking’ button on the left-hand side menu of the page.
- Click ‘Add Delegation’ and select a validator from the table. If you are uncertain about how to choose a validator, refer to our FAQ for guidance on selecting a validator.
- Once you have chosen a validator and decided on the number of tokens you would like to stake, click ‘Continue’ and sign the transaction.
Step 3: Finalize the transaction
- Enter the amount of FTM you want to stake
- Press ‘Continue’
- Enter your password and click ‘Delegate’
- Sign the transaction.
Congratulations! You have now staked your FTM tokens and will start earning those juicy staking rewards.
Step 4: Track staking portfolio
- Track your FTM staking rewards on the staking dashboard.
- Track the current and historical reward rates, validator count, number of unique FTM staking wallets, and staking ratio of the FTM network by visiting the Fantom 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 Fantom (FTM) validators” and “How are the rewards generated” on the Fantom asset page.
Step 5: How to Unstake FTM
To unstake your FTM tokens, follow the steps below:
- Click on ‘Staking’ in the menu bar
- In the Staking tab, click ‘Undelegate’
- Enter the amount of FTM you’d like to undelegate and click ‘Ok, undelegate’. This can be any number between 1 and the total amount you are currently staking
- Enter your password and click ‘Undelegate’
Maximizing Staked FTM
Now that you have staked your FTM, you have four options which can be used to change your position. These options appear on the Fantom Staking Portal. The options are:
Stake more
Stakers can add to their current stake or delegate to another validator.
- Click the ‘Increase Delegation’ button from within the Staking tab. This will only be available if you’ve claimed all pending rewards, so please ensure you do so first.
- Enter the amount you’d like to increase your delegation by and click ‘Continue’.
- Enter your password and click ‘Delegate’.
Claim reward
Users can claim their FTM staking rewards directly in the fWallet.
- Click the ‘Claim Rewards’ button from within the Staking tab.
- Enter your password and click ‘Claim Rewards’. If you have more than 200 epochs of pending rewards, you will need to repeat the process until all rewards have been claimed.
If you claimed rewards prior to the rewards unlock, you’ll need to Unstash them.
- Click the ‘Unstash’ button from within the Staking tab.
- Enter your password and click ‘Confirm’.
Unbond
Users can unbond their FTM by following the unstake process described in step 5. Keep in mind that your tokens will take 7 days to unbond.
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 Fantom and thus contributing to the long-term success of your investment! Fantom 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 Fantom (FTM) asset page for more insights into staking FTM, and drop us a message if you found this tutorial useful. Happy staking!