Liminal Vaults supports Staking to help VASP institutions scale their digital asset holdings by earning staking rewards. It works similarly to a fixed-term deposit at a bank, where you deposit an asset for a minimum period and earn rewards at the end of the term. However, unlike banks, where deposits are lent out to generate interest, staking rewards are generated from the blockchain’s consensus mechanism, including Proof-of-Stake (PoS). Investing in staking enables you to secure digital assets while scaling the blockchain network and its ecosystem.

Navigate to the Staking page from the Vaults web to explore more.

1. Current Staking Value Header:
   1. Lists the staked value, claimable value, and average APR rate currently in your organisation.
   2. Click the Rewards Calculator on the right to check your estimated rewards rate.
   3. Click the Start Staking button next to the available asset to enable staking.
2. Staking Portfolio: Lists all supported assets you can stake in your organisation. Users can start and manage all staking operations.

How staking works

Staking a digital asset means locking your cryptocurrency to a validator node on the blockchain network, i.e., a secure smart contract. As a PoS network participant, you can either be a validator or a delegator.

• Validator: Runs a dedicated validator node that is responsible for validating transactions, generating new blocks, and securing the network. In return, validators earn staking rewards distributed by the network and may charge a commission fee to the delegator who stakes with them.
• Delegator: Acts as an investor. The participant stakes their token to an existing validator without operating the node themselves. Delegators earn rewards via commission on the staking rewards.

Staking Assets in Vaults

Liminal supports Staking-as-a-Service in partnership with Figment and NOBI Labs, leading providers of the staking ecosystem. Both partners act as validators to stake assets and validate blockchain transactions on your behalf for optimal staking rewards.
Staking is a one-time action. To modify a staked amount, you must first unstake, withdraw, and then restake. The staked amount will activate in the given Epoch time and begin accruing rewards. Rewards can be collected at regular intervals once staking is enabled for the asset wallet.

Vaults supports the following features:

• Supported wallets: Cold multisig and warm MPC mobile wallets.
• Multiple asset support: Manage staking for multiple assets like Atom, Matic, Ethereum, Solana, and Cardano, from a unified and user-friendly dashboard.
• Validator support:
  • Nobi Labs: Validator for Tron and Polygon chains.
  • Figment: Validator for Solana, Cardano (ADA), and Matic (ETH).

Vaults web supports the following staking lifecycle for the supported protocols:

1. Staking is enabled for your organisation by default.
2. Enabling staking for the selected asset type.
3. Stake the asset.
4. Delegate the asset (depends on the Consensus Mechanism). This is currently applicable for Tron assets.
5. Claim reward.
6. Unstake and withdraw assets.

Supported Protocols

Liminal Vaults currently supports the following Staking features across all supported protocols:

Rewards Calculator

Users can check the estimated claimable rewards for a particular asset using the Rewards Calculator before staking. The estimated rewards are calculated using the APR (Annual Percentage Rate) applied on top of the amount of tokens you plan to stake. APRs provide a yearly return on your locked assets as a percentage of your stake.

The following variables are used to calculate the estimated rewards:

1. Asset type: Select the supported asset type you want to stake from the dropdown.
2. Amount of tokens: Enter the token amount you want to stake. The token amount is directly proportional to your staking reward, indicating a higher potential reward based on more tokens.
3. Staking duration: Enter the number of months you want to lock the asset.
4. Asset price: The asset price in the given time in USD value, and
5. Rewards rate (APR): The default rewards rate percentage (APR) defined for the asset.

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Note

1. The Staking rewards rate may vary over time. Refer to the Figment website for the latest rewards percentage.
2. Liminal supports Staking-as-a-Service and generates rewards via third-party validators. It does not at any point obtain or hold custody of the said staked assets. By enabling a validator, you are agreeing to the terms of service for that validator.
3. Vaults does not support restaking rewards as a feature.
4. Vaults does not support auto-compounding. It is supported if the asset supports it by default, like for Ada (Cardano).

Enable Staking for Asset

Staking is enabled for your organisation by default. To enable staking for a particular asset:

1. Log in to your Vaults web account.
2. Navigate to Staking.
3. Click Start Staking next to the asset you want to stake.
4. Once enabled, you can click the Stake button next to a respective asset wallet.

Demo: Navigate Staking UI

Next Steps

1. Refer to the Staking Prerequisites.
2. Refer to the Supported protocols for staking a particular asset.

Supported API

Staking supports the /rewards API reference via Express SDK. It provides a detailed rewards report of the selected protocol including the total rewards generated for the given time, provider and timestamp details.

Refer to the Rewards API reference to learn more.

Staking Best Practices

1. Each wallet can have only one active stake request at a time.
2. You cannot change the staking amount once it is initiated.
3. Ensure you have sufficient balance for gas station fees. Do not stake the entire wallet balance.