How to stake Polkadex | KoinX

September 14, 2024 1:12 pm

Polkadex Staking Overview

Polkadex (PDEX) is a token that powers a decentralised exchange built on the Polkadot network. It aims to provide a fast, secure, and user-friendly platform for trading cryptocurrencies with high-frequency trading, trading bots, and peer-to-peer orderbooks. Staking PDEX is a way to earn rewards by locking up PDEX tokens and supporting the network validators who run the Polkadex blockchain. Staking PDEX requires a minimum lock-up period of 28 days, and the current APY for staking is 24.69% for nominators and 26.6% for validators. Staking PDEX also helps to increase the security and decentralisation of the Polkadex network.

This guide aims to provide you with step-by-step instructions on how to stake your PDEX tokens and earn rewards

How to Stake Polkadex (PDEX)

Staking is a process of locking up some tokens in a cryptocurrency network to support its security and operations while earning rewards. There are two ways to stake PDEX: as a validator or as a nominator. A validator is someone who runs a node and participates in the consensus process of the network whereas a nominator is someone who delegates their PDEX tokens to one or more validators and shares the rewards and risks with them.

To stake PDEX as a nominator, follow these step-by-step instructions:

Step 1 - Prepare Your Talisman Wallet and PDEX Tokens

To stake your PDEX tokens as a nominator, you need to first download the Talisman wallet, and purchase PDEX tokens from an exchange such as Kucoin or Uniswap. You can then migrate the PDEX tokens from the ERC20 standard to the native Polkadex standard. The Talisman wallet is the official wallet for Polkadex that allows you to interact with the network and manage your funds. Once you have set up your wallet and acquired the necessary PDEX tokens, you can move on to creating your stash and controller accounts to begin the staking process.

Step 2 - Create Your Stash and Controller Accounts

Create a Stash and Controller account using the Polkadot.js browser extension. First, Install the extension and then use it to create two accounts. Make sure to keep the mnemonic seed phrase safe.

Step 3 - Bond Your PDEX Tokens

Go to the Polkadex Staking Dashboard and connect to your Talisman wallet and choose your Stash and Controller accounts. Enter the amount of PDEX tokens you want to bond as a nominator and choose a payment destination for your rewards. You have the following choices:

Stash account (increase or not increase stake),
Controller account,
A specified payment account.

After selecting your preferred payment destination, confirm your transaction details.

Step 4 - Choose Your Validators

To select validators, go to the Polkadex Staking Dashboard and view the list of validators. You can see their name, identity, commission rate, uptime, and stake. You can nominate up to 16 validators at once by clicking on the star icon next to their name. Once you’ve selected your validators, click “Next.”

Step 5 - Claim Your Rewards

Confirm your nomination by signing the transaction with your Talisman wallet. Review the details of your nomination, such as the amount of PDEX tokens bonded, payment destination, and the validators nominated. Make sure they are correct and click on “Sign the transaction”. A confirmation message will indicate that your nomination has been submitted successfully.

Step 6 - Manage Your Staking Operations

The last step is to manage your staking operations. As a nominator, you can do that using the Polkadex Staking Dashboard. You can change your nominated validators, payment destination, bond more PDEX tokens, unbond PDEX tokens, and claim rewards. Each action requires signing a new transaction to confirm your changes.

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Best Places to Stake Polkadex (PDEX)

1. Polkadex Staking Dashboard

Pros

Staking PDEX on the Polkadex Staking Dashboard provides a direct interface for interacting with the Polkadex network, giving you more control over your staking decisions.
You can choose from a variety of validators on the platform and filter them based on your criteria, allowing you to select the most suitable validators for your staking preferences.
The platform allows you to change your nominated validators, payment destination, bonded amount, and other preferences at any time, providing you with the flexibility to adjust your staking strategy to maximize your returns
You can claim your rewards at any time and for any era, allowing you to efficiently earn and access your staking rewards.

Cons

Staking PDEX on the Polkadex Staking Dashboard will need to install and use multiple tools, such as the Talisman wallet, Polkadot.js browser extension, and Polkadex Staking Dashboard, which can be time-consuming and require some technical knowledge.
Every staking operation performed on the Polkadex Staking Dashboard requires transaction fees, which can add up over time.
Once investors bond their PDEX tokens, they will need to wait for 28 days to unbond them and make them liquid again, which means they cannot access their funds during this time.

2. Atomic Wallet

Pros

Staking PDEX on Atomic Wallet is hassle-free and requires no technical knowledge.
Atomic Wallet supports multiple cryptocurrencies, allowing you to manage all your assets in one place.
You can earn extra rewards with 1% cashback for cryptocurrency exchanges and purchases.
You have the flexibility to unstake your PDEX tokens at any time, without waiting for any period.

Cons

There are limited options for choosing validators and the user cannot change them after staking.
The user has limited control over their staking preferences and operations.
The user has to download and install the Atomic Wallet app on their system, which may not be suitable for some users who prefer web-based or mobile wallets.

3. Ledger

Pros

Your PDEX tokens are kept secure with a hardware wallet that provides high-level security against potential threats.
You can use your Ledger device to sign transactions and confirm your staking actions, ensuring that your private keys are kept safe.
You have direct control over your staking preferences and can make informed decisions based on your criteria.
You have access to a wide range of validators to choose from, allowing you to select the ones that align with your goals and priorities.

Cons

Users need to purchase a Ledger device and the Polkadot app to stake PDEX on Ledger, which can be an additional cost.
Staking PDEX on Ledger requires connecting the Ledger device to a computer and using the Polkadot.js browser extension and the Polkadex Staking Dashboard, which can be cumbersome for some users.
Users need to pay transaction fees for every staking operation they perform, which can add up over time.
It takes 28 days to unbond PDEX tokens on Ledger, which means users cannot quickly liquidate their holdings if needed.

Also read: Staking Polkadex Price Prediction

Benefits of Staking Polkadex (PDEX)

PDEX holders can earn rewards for staking their tokens, with the current APY being around 27%, which is higher than many other staking platforms.
By staking PDEX, holders can enjoy the features of the Polkadot platform while contributing to the growth and success of the Polkadex platform, which aims to provide a scalable, interoperable, and inclusive platform for traders, developers, and projects.
PDEX holders can participate in the decentralised governance model of the Polkadex and Polkadot network by proposing and voting on network upgrades, parameters, and policies. By staking PDEX, holders can influence the direction and future of Polkadex and Polkadot.

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Frequently Asked Questions

What is the minimum stake for Polkadex?

The minimum stake for Polkadot is dynamic and depends on factors like the number of nominators, staked DOT amount, and the election algorithm. The Polkadot website states a minimum stake of 293.700 DOT (approximately $10,000) for active nomination and earning rewards. Those with lower amounts can still participate in staking through nomination pools starting from 1 DOT. Different platforms have different requirements and fees, with suggestions ranging from 10 DOT to become a validator (Staking Facilities) to around 80 DOT (Ledger) or 120 DOT (MUO).

What is the price prediction for Polkadex?

A long-term price prediction for Polkadex suggests that the PDEX price could range between $2.74 and $8.22 by 2024, between $3.50 and $18.23 by 2025, and between $4.49 and $40.45 by 2026. These price ranges are based on the tech growth method, which compares Polkadex against other technological innovations and trends.

How much can I earn by staking Polkadex (PDEX)?

The current estimated annual percentage yield (APY) for staking PDEX is around 27%, which means if you stake 1000 PDEX tokens for one year, you can earn approximately 270 PDEX tokens as rewards. However, the reward amount may vary over time depending on factors like the amount of PDEX tokens you stake, the type of staking role you choose, the performance and reputation of your validators, and the network inflation and participation rate.

What are the risks of staking Polkadex (PDEX)?

Staking Polkadex (PDEX) involves risks like slashing, transaction fees, unbonding period, and market volatility. Slashing penalizes validators and their nominators for misbehaving or going offline. Transaction fees can reduce your net rewards and affect your profitability. An unbonding period can limit your flexibility and liquidity. Market volatility can affect your rewards and risks in terms of fiat or other cryptocurrencies.

How can I unstake or withdraw my Polkadex (PDEX)?

To unstake or withdraw your Polkadex (PDEX) tokens, you need to first stop nominating or validating, wait for the current era to end, then initiate the unbonding process by entering the amount of PDEX tokens you want to unbond, and wait for the 28-day unbonding period to end. Finally, you can withdraw your unbonded funds by confirming the action on the Polkadex Staking Dashboard and signing the transaction with your controller account.

How to stake Polkadex | KoinX

Polkadex Staking Overview