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Complete guide on Polygon (MATIC) staking on CEX.IO
CEX.IO features soft MATIC staking with no lock periods and a high annual yield. Discover how MATIC staking works and how to start earning staking rewards with CEX.IO.
What is Polygon (MATIC)?
Polygon, previously Matic Network, is a platform that helps the Ethereum network scale and improve infrastructure development by utilizing sidechains and different layer 2 (L2) solutions. Polygon connects Ethereum-based projects with Polygon scaling solutions, allowing developers to increase flexibility and sovereignty of their projects, and build new projects.
The platform uses the so-called Polygon SDK framework, providing developers access to L2 solutions like Plasma, Validium, Optimistic rollups, and zero-knowledge rollups. All these L2 solutions are designed to multiply the transaction throughput without compromising the security of associated blockchains. Polygon also combines the Plasma framework with its own proof of stake (PoS) blockchain architecture known to ensure projects’ security.
Polygon has a native token called MATIC. It is mostly used to govern and secure the Polygon network and to pay gas fees within the Polygon ecosystem. MATIC tokens can be staked to support the functionality of the Polygon network and earn staking rewards.
What is Proof of Stake (PoS)?
Proof of stake is a system that allows blockchain networks to achieve distributed consensus. Anyone can join proof of stake networks and lock a certain amount of funds to participate in staking, to secure the network and maintain consensus. The individuals who participate in staking can become validators to vote for upgrades within the network, or validate transactions and add them to the blockchain.
Typically, achieving consensus in a proof of stake network requires processing many blocks, but the Polygon network uses a modified consensus mechanism to achieve consensus with every block. In the Polygon network, the consensus is achieved by committing checkpoints of Polygon blocks to the Ethereum network.
Polygon Staking Explained
Users can stake MATIC and earn staking rewards by being either a validator or a delegator. Validators run specific nodes to participate in the consensus of the Polygon network directly, verifying transactions and adding new blocks to the blockchain. If users don’t want to run their own node, they can delegate their MATIC tokens to delegators and contribute to network security.
Validators earn staking rewards for bringing value to the network. If a validator has delegators, then earned rewards are distributed to delegators in proportion to their contribution. Delegators increase the power of the validator. More power, more probability that the validator will be selected to become a block producer and earn staking rewards.
Polygon runs validator auctions periodically where anyone can replace the current validator by proposing a higher stake. So becoming a validator may require a significant number of funds and technical knowledge of running a node. That is why token delegation is considered a more affordable and easier option to start staking MATIC.
If you want to delegate your tokens to earn staking rewards, you usually need to choose a validator on your own. Each validator acts independently from one another, and they may have their own commission rates for delegators. If a validator has a high commission, it will significantly reduce the delegators’ rewards. When choosing a validator on your own, it is also important to look at the “checkpoints signed ratio” which shows the validator's past performance. If the validator has less than 100% “checkpoints signed ratio,” it means validators distributed fewer rewards to delegators due to certain reasons. Staking rewards can be restaked and sent to validators to earn more staking rewards in the future. However, usually delegators need to pay gas fees for that.
When delegators want to stop staking MATIC, they usually need to wait until the “unbond process” finishes. Unbond process refers to so-called unstaking when you remove your stake from the validator to claim your rewards. In the Polygon network, the unbond process usually takes 80 checkpoints, or from one day to several weeks.
Where can you Stake Polygon?
Polygon gained significant support from the crypto community, making MATIC one of the most popular assets for staking. A lot of staking providers allow crypto enthusiasts to select validators and delegate tokens to them to earn staking rewards. But MATIC staking can be much easier and more flexible if you stake crypto with CEX.IO.
With CEX.IO Crypto Staking, you don’t need to assess the offerings of different delegators, or pay gas fees to stop staking or restake your tokens. On CEX.IO, you just need to store MATIC tokens in your CEX.IO balance to start participating in staking. No additional actions are needed to earn staking rewards.
When you stake cryptocurrencies on CEX.IO, you can benefit from several features that can make your staking even more flexible and easy.
Firstly, there is no lock period on CEX.IO, meaning your funds are not locked while you participate in staking. It opens a lot of new opportunities for users. For example, you can:
Add funds to earn more staking rewards whenever you want
Trade and stake cryptocurrencies simultaneously
Withdraw staked assets anytime, without waiting a certain period when your funds return from the staking node
Secondly, CEX.IO Staking features automated balance replenishment. Typically, you need to restake MATIC tokens separately and even pay gas fees for that. On CEX.IO, staking rewards are automatically distributed to your CEX.IO balance. It allows you to earn more staking rewards with consecutive staking periods without additional commissions.
Thirdly, CEX.IO Staking is an integral part of the CEX.IO ecosystem, meaning you can benefit from top-notch security and numerous services while staking cryptocurrency.
How to Stake Polygon on CEX.IO
CEX.IO strives to make the staking convenient for all users, regardless of their technical knowledge, crypto experience, and starting capital. For that reason, we aim to make interaction with staked cryptocurrencies as simple as possible.
To start staking with CEX.IO, just follow a few simple steps:
What is the Polygon Staking Yield on CEX.IO?
Estimated annual yield (EAY) shows what potential yield you can earn for staking cryptocurrencies on CEX.IO. Each cryptocurrency has its own estimated annual yield that depends on network and validator performance. If you want to find the current estimated annual yield for staking MATIC on CEX.IO, then go to the Staking page or on the staking dashboard.
Please note that the annual yield is called estimated because there are a lot of factors that may affect potential staking rewards. It is the main reason why estimated annual yield may be shown as a range or may differ from one staking period to another. You can find more information about the reason that may affect the estimated annual yield in this blog post.
How to Calculate Potential MATIC Staking Rewards with the Earnings Calculator
If you want to find out what potential staking reward you can earn with the current Polygon interest rate, then you can use our Earnings calculator. The Earnings calculator can be found on the Staking page and the staking dashboard.
To see your staking reward, you need to choose MATIC in the dropdown list of supported cryptocurrencies for staking. Then you need to enter the number of tokens you currently have or plan to have in your CEX.IO balance. After that, the calculator will automatically calculate the estimated earnings you can get for staking MATIC with CEX.IO.
The staking calculator shows the estimated amount of gain that will “accrue” for a day, month, and year. The amounts indicated in the calculator are approximate since they are based on the current MATIC price and current estimated annual yield that may change over time.
Please note that if you deposit or withdraw funds from your CEX.IO balance, it will also affect your potential reward. Potential staking rewards are re-calculated every hour, allowing you to join CEX.IO Staking whenever you want and earn staking rewards even if stored stake-able crypto for only a few hours.
If you want to withdraw MATIC using the Polygon network, then you can also do it using the Finance page. Click “Withdrawal” next to MATIC, enter your amount, and destination wallet address. If you use the CEX.IO mobile app for transactions, then you can use guides about crypto deposits and withdrawals.
Please note that if the number of tokens in your CEX.IO account is below the required limit for staking, you will not earn staking rewards. You can deposit or buy MATIC anytime to start using the CEX.IO Staking service.
After receiving your first staking reward, you will be able to see in the CEX.IO mobile app how much you earned by staking MATIC. For that, you need to tap the “Wallet” menu and select MATIC in the list of cryptocurrencies. For more information about staked coins, you can use the staking dashboard on the CEX.IO website.