Do you have Harmony ONE tokens just idling in your wallet? Why not maximize your gains by staking them in the meantime? Staking them helps to strengthen the network security, while earning you rewards at the same time.
In this article, we explore how to stake ONE Harmony to earn those rewards, as well as how long does it take to unstake Harmony ONE when the time comes.
How to Stake ONE Harmony Tokens?
To stake your ONE tokens, you need to first create a Harmony One wallet, and transfer your ONE tokens over. Next, go to the Harmony One staking website, and choose between the list of validators available. The overall expected returns from staking is about 10% a year, but there are variances between validators.
I typically choose validators that I recognize as active and involved in the community. Other factors that I also consider are their uptime, and their commissions. Do note that you need to delegate a minimum of 100 ONEs for staking. If you do decide to unstake, you will need to wait through seven epochs to retrieve your ONE tokens.
Liquid Staking Harmony ONE Tokens
Typically when you stake your One tokens, you will be unable to access them any further. They will be delegated to the validator, until you decide to undelegate them. With liquid staking, however, you can do much more with your One tokens.
Tranquil Finance offers stONE, a liquid staking derivative. This allows users to stake their ONE tokens with validators, helping secure the network and earn staking rewards. One benefit of liquid staking tokens is the auto-compounding of staking rewards, allowing for convenient compounding of rewards. This is in contrast to traditional staking, where you will have to manually collect and re-delegate rewards to compound.
Another benefit of liquid staking that DeFi enthusiasts love is its many use cases – stONE can be also used in DeFi applications to earn additional rewards on top of staking rewards. For example, you can use it as collateral to borrow money from, or simply supply it to earn about 8% APY at Tranquil Finance. You can also provide liquidity for the stONE-ONE LP, earning additional LP fees as well as incentives.
Another benefit is also the ability to swap stONE for ONE using the LP to skip the undelegation waiting time, if you need funds urgently. To receive your stOne liquid staking tokens, simply stake your One tokens and receive stOne in return, based on the prevailing exchange rates.
Closing Thoughts
If you have some ONE tokens in your exchange or wallet, you should consider staking them. This is especially so for people who are bullish on the Harmony ecosystem as it helps to secure the network transactions, and earns you additional One tokens with no impermanent losses.
WhETHer you prefer traditional staking methods, or liquid staking options, there is something for everyone. With the help of this short guide on how to stake ONE Harmony, start staking and earning additional rewards today!
