Introduction
The Orbs protocol uses a Proof-of-Stake (PoS) consensus mechanism and is executed by a public network of permissionless validators (who are referred to as “Guardians”).
This tutorial will show you where you can buy $ORBS and how to stake your tokens on the Orbs network.
What network is Orbs on?
Orbs is set up as a separate decentralized execution layer operating between existing L1/L2 solutions and the application layer, as part of a tiered blockchain stack, without moving liquidity onto a new chain. Orbs have recently revised its PoS architecture, implementing multi-chain staking on Ethereum and Polygon.
Adding Orbs PoS staking on Polygon means that the Orbs network utilizes the available blockchain stack to its fullest potential:
- The security of Ethereum as the base layer
- The scalability & low fees of Polygon as L2.
Step 1: Make sure you have a MetaMask wallet
MetaMask is one of the most popular self-custody wallets and offers users the ability to stake their tokens, use blockchain apps and manage multiple tokens in one wallet. You can download the MetaMask wallet here.
Step 2: Get yourself some $ORBS tokens
Currently, you can purchase $ORBS tokens on Kucoin, FTX or using QuickSwap.
To get $ORBS tokens using Quickswap, navigate to QuickSwap and connect your MetaMask wallet. We will be using $MATIC tokens to swap to $ORBS.
- Connect your MetaMask wallet
- Select ‘MATIC’ in the ‘from’ tab
- Select ‘Orbs’ in the ‘to’ tab
- If you don’t see Orbs there, you will need to import the contract address
- The contract address is 0x614389EaAE0A6821DC49062D56BDA3d9d45Fa2ff
- Click ‘SWAP’
- Approve the transaction on MetaMask
- The $ORBS will reflect in your MetaMask wallet
Great! Now you have $ORBS tokens and can go to the staking portal to delegate your stake.
Step 3: Go to the $ORBS staking portal and choose a validator
Go to the $ORBS staking portal and connect your MetaMask wallet. Be sure to select the Polygon network when connecting your wallet. Just a reminder that a validator on Orbs is referred to as a ‘Guardian’.
You will now be greeted with the homepage of the staking portal showing you a few statistics on your current holdings:
- Unstaked Orbs in your wallet
- Staked ORBS & Rewards Balance
- No tokens in cooldown
- Total rewards awarded
- Rewards rate (ORBS/Week)
- Pending Rewards balance
As you scroll further down you will see a list of all the guardians you can stake with. It may seem overwhelming at first, but we will walk you through it. Next, we will show you how to choose a guardian.
Step 4: But how do I choose a guardian?
Choosing a guardian can be a daunting process for first-timers. The terminology and jargon used are new and the often-time overcomplicates the process of choosing a guardian. We are here to help and will outline some good practices below:
Understanding what a guardian is
In Proof-Of-Stake (POS) blockchains, validators are the ones processing transactions and securing the network, in return they receive staking rewards. To be a validator they need to put up their own stake, this costs a lot of money depending on the amount of stake (and price of the token) they need to put up to be a validator. A reminder that a validator on Orbs is called a guardian.
When you choose a validator to stake your crypto with, you are essentially adding your stake to their stake and in return for doing that, you get a share of the staking rewards. You might think this is a good deal for you, they do all the work and you get to reap the rewards right? The ‘cost’ for you is the commission rate they charge for delegating your stake with them.
Rewards %
This refers to the percentage of tokens that a guardian will take as commission for running the infrastructure. Think of it as what you will have to give up of your staking rewards in order to stake with them.
- Typically the lower the commission rate the better
- Beware of a 0% commission, it may seem like a great option but keep in mind that a validator can change the commission rate. This is why it is important to check on your staking positions regularly.
- The commission or fee you pay to the guardian is (1 – rewards %)
Slashing
When you make the decision to stake your crypto, there is a risk you take on called ‘slashing’ risk. As mentioned earlier, guardians are the ones processing transactions and securing the network, in return they receive staking rewards. To become a guardian, they had to put up their own stake. The reason they put up their own money is so that it incentivizes good behavior and stops them from acting maliciously (Like processing dodgy transactions).
If they do act maliciously, then their stake will get ‘slashed’ and they will lose their money. Slashing usually occurs because of guardian downtime or double signing. So ultimately, it’s a game theory concept to keep all network participants in check. Some validators may have ‘slashing insurance’, this simply means that your stake will be insured against losses that may occur due to slashing.
There is no active slashing on Orbs network. Guardians who do not fulfill their duties can be voted out of the committee by other Guardians.
Choosing which guardian to stake with
Go to the $ORBS staking portal and connect your MetaMask wallet. Be sure to select the Polygon network when connecting your wallet. You will see all the guardians that are available to stake with and different metrics to help you choose, lets’s break it down:
- Name – This is the name of the guardian or the company that set it up
- Website – This is the website of that specific guardian
- Address – This is the wallet address of the guardian
- Rewards – The % staking rewards that you will receive, the commission or fee you pay to the guardian is (1 – rewards %).
- Effective stake – The amount that has been staked by delegators
- Committee uptime – The percentage of the time in the last 30 days that the Guardian was part of the active set, meaning that they were receiving rewards
- Available capacity – The Guardian’s ability to receive additional delegations. When the Available Capacity is 0%, the Guardian cannot receive additional delegations and in order to receive rewards, you should select a different Guardian.
You will see a list of different validators on this page and now need to make a choice.
First, check StakingRewards.com to see if there is a Verified Provider for Orbs network.
If you can’t find a Verified Provider there, you ideally want to choose a guardian with:
- Reward rate – Most of the guardians have a 67% reward rate, meaning that you get 67% of the staking rewards.
- Effective stake – The higher the effective stake, the more popular or trusted it might be as it may have a higher number of delegators than others.
- Committee uptime – The higher the uptime the better, you ideally want to see >99% uptime.
- Available capacity – The higher this %, the greater its ability to receive delegations. If the % is zero then you need to choose a different guardian.
Wondering what the current staking APY is? Check it out on StakingRewards here.
Step 5: Stake your coins
Now that you have chosen a guardian, you can stake your $ORBS tokens and will start earning staking rewards.
Conclusion
Staking is a great way for you to help the Orbs network become more secure, efficient, and decentralized as you support the Guardians on the network. Staking has many benefits beyond just earning yield on your investment:
- You are contributing to decentralization
- Boosting network security
- Participating in governance
Check out StakingRewards.com for more tutorials and insights on best practices for staking your crypto.