As part of Liminal’s continued collaboration with the Polygon network, Liminal has now integrated Polygon Staking. Users’ can stake their MATIC tokens on Polygon via Proof of Stake Delegation to earn rewards on their MATIC tokens. This integration is our effort to simplify the staking procedure while providing more opportunities for our users to contribute to the protocol and earn tokens.
Let’s continue on this note and begin by touching on some basics-
What is Polygon POS Chain?
The Polygon Proof of Stake (PoS) chain is an EVM-compatible “commit-chain,” which means that Polygon “commits” the Merkle source of all blocks generated onto Ethereum. Depending on the gas constraint, Polygon PoS provides high throughput. Additionally, it has lower transaction fees, giving customers more affordable access to decentralized applications while upholding strong security requirements.
A decentralized network of proof of stake validators manages Polygon PoS. Further, Polygon’s EVM compatibility enables developers to redeploy their Ethereum applications with little to no code modification. Since its introduction, Polygon PoS has experienced a rapid increase in usage owing to its accessibility, scalability, security assurances, and compatibility with the values of the Ethereum community.
Delegation and Rewards on Polygon POS
MATIC, an ERC-20 token on Ethereum, is Polygon’s native token. MATIC is used to stake and secure the chain as well as pay transaction fees on the Polygon network. Users can utilize their MATIC directly on the mainnet to delegate because the Polygon staking contracts are implemented on Ethereum.
Moreover, to compensate validators and delegators through inflation, Polygon has set aside 12% of its entire 10 billion token supply (or around 1.2 billion MATIC). Within the first five years of the network, inflationary awards will be given out, and after that, the network hopes to survive solely on transaction fees.
- Minimum Delegation: 1 MATIC
- Unbonding Period: 80 checkpoints (2–4 days, depending on Ethereum mainnet congestion)
- Estimated APY: ~5.4%
Now that we have cleared some air on the basics, let’s talk about Liminal’s offerings.
Why use Liminal’s multisig for Staking on Polygon?
When you utilize Liminal’s multisig wallet for staking, you are offered a wide range of benefits, including-
- Security: When you stake your tokens on a multi-sig, just the members can sign off on the transfer of your tokens. Given its digital nature, this additional degree of protection is advantageous and necessary. With only one private key, assets are more susceptible to theft.
- Simplicity: Staking might sound very complex and overwhelming however, with Liminal, you just need to come on the dashboard and follow the instructions. We make sure, with security, you also get simplicity. You can stake and unstake at any point in time effortlessly.
- Whitelisting: It is a list of addresses that you have deemed to be reliable. It makes it possible for transfers/withdrawals of cryptocurrencies to be exclusively for addresses approved as per your organization’s policy It is a great security feature for safeguarding your assets.
Some key points to remember-
- To receive accumulated rewards, you must manually withdraw
- To withdraw, you need a minimum of 2 MATIC accumulated in rewards
- You must manually restake the rewards
Learn more about Liminal here.
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Original Content Published On Medium