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Staking

What is the process of staking HBAR on Stader?​

To simplify staking HBAR, we have created a step by step guide, additionally many community members have also created video tutorials on how to stake.

Will there be any minimum amount of HBAR required for staking?​

Practically no, but we recommend users to stake a minimum of 0.01 HBAR.

Can you withdraw the full HBAR that you staked initially?​

Yes, you will be able to withdraw all your staked HBAR by unstaking all the HBARX. To Unstake all HBARX use ‘max’ button on unstake section in the dapp and wait for 1 days of unbonding time to withdraw into your wallet.

What is unbonding period?​

Unbonding time is the interval after unstaking, post which the user is able to withdraw funds to their wallet.

Why do we need to have an unbonding period?​

The aim of staking is to create a mechanism for long-term token holders to participate in the consensus mechanism and earn a reward.Unbonding time service the following purpose on any POS network.

  • clean stake distribution
    It helps keep a clean stake distribution for the consensus mechanism in each epoch. As transactions are allocated to nodes, based on the staked amount, it is important to ensure their relative weights stay constant while one set of transactions are being processed (one Epoch). Thus, users might stake and unstake anytime but the network needs to have one set of staking weights in one epoch. Now, this is currently not the case for Hedera but will be soon, so it is important to build this feature and prepare the community for it. Also, thus our promise to conform this time to protocol staking when it goes live .
  • Deters Short term trading
    It deters short-term trading around the rewards cycle. One of the major ways of gaming a staking program is to stake just before rewards are added and unstake just after. Thus gaining rewards without long-term holding. Unbonding time makes this strategy unprofitable and keeps staking rewards for long-term holders
  • Promotes DeFi
    One of the additional objectives of HBARX is to kick off the DeFi ecosystem on Hedera and for all the upcoming DEXs there will be HBARX:HBAR pools for users to get instant liquidity into and out of HBAR positions. Hence, users can choose between exchanging HBARX for HBAR on a DEX or unstaking HBARX and waiting for the unbonding time. (Please note that fees associated with DEXs will apply and Stader has no control over such fees).

Why happens to my funds during the unbonding period?​

After unstaking HBARX, the corresponding amount of HBAR which is equal to HBARX multiplied by Exchange rate is moved to Unstaking contract.Moreover, these funds never leave the Hedera network and cannot be used by Stader for any purposes.Rewards are not accrued for the HBAR transferred to the unstaking contract. After the unbonding time is completed, users can withdraw HBAR to their respective wallets.

In case these do not solve your concerns, you can always reach out to us on our official Telegram Channel for any queries.