Jan 13, 2023 6 min read

How to Stake Fantom with Validators

How to Stake Fantom with Validators
Photo by Aron Visuals / Unsplash
Table of Contents

Fantom is a layer 1 Ethereum blockchain with a flexible EVM-compliant interface that enables the deployment and operation of decentralized Ethereum applications (DApps) on Fantom. It has a scalable algorithm to deliver rapid transactions with low fees and fast turnaround times.

Fantom is a smart contract-supporting blockchain, powered by its native FTM token. Fantom launched its mainnet in December 2019 following a $40 million raise. Its blockchain is fast and cheap, and it supports its own decentralized finance (DeFi) industry.

How does Fantom work?

The Fantom blockchain achieves its speed through a directed acyclic graph (DAG), where blockchain transaction histories are displayed as a “hashgraph”. The Lachesis consensus mechanism, an FTM concept, is a variant of proof of stake called asynchronous byzantine fault tolerant (aBFT). It can operate without a hitch even if a large chunk of transaction data is fraudulent.

This means that Fantom’s blockchain nodes can validate transactions independently without passing through a queue of transactions.

Since Fantom is compatible with the Ethereum virtual machine (EVM), it becomes easier to port dApps built on Ethereum right over to Fantom. FTM is equally available as an ERC-20 token and a BEP-20 token.

What is Fantom staking?

Staking involves providing validation and security services to a network and earning rewards through the process. These services are offered by validated tokens that provide the necessary incentives to comply with protocol requirements. Staking FTM requires securing an active part of the network and earning passively, referred to as FTM reward for investors' participation. Staking helps to retain token holders a little bit longer on the blockchain but will remain buried in the owner's wallet and they can only access and unlock it at any moment.

Fantom Staking Requirements

  • Minimum stake amount: 1 FTM
  • Minimum lock-up period: 0 days, earning the base reward rate
  • Maximum lock-up period: 365 days, earning the maximum reward rate
  • Unbonding time (time between unstaking and funds become available): 7 days
  • Delegation fee: The network has set a fixed fee of 15% on staking rewards paid from stakers to validators for running their nodes.

How To Stake FTM with a Validator

To stake FTM on Fantom.foundation;

  1. You must have a minimum of 1 FTM.
  2. Click on [Stake] on the FTM staking page.
Fantom Staking page

3. Login with a compatible wallet, like Metamask, Coinbase Wallet, WalletConnect, and Ledger (a cold wallet).

Wallet select page for Fantom

4. Click on Staking, and add a delegation by choosing a validator and an amount to stake.

Fantom Validators

5. Select your lock-up period and confirm.

The lock-up period for staking FTM is between 0- 365 days with their corresponding reward rate. Fantom has an unbonding period of seven days, with a delegation fee of 15% to validators.

Fantom Staking Rewards

The amount of FTM available for staking is between 10 FTM to 2 million FTM.

If you stake 2,174 FTM over a year, the current reward is 150 FTM on an APY of 6.90%.

If you stake 10,832 FTM over 1 year; the current reward is 747 FTM on an APY of 6.90%.

If you stake 101,741 FTM over 1-year current reward is 7,020 FTM on an APY of 6.90%.

If you stake 1,006,498 1-year current reward is 69,448 FTM on an APY of 6.90%.

Fantom validator nodes rewards

Validators operate the entire Nodes and are critical to the Fantom network. Validator participants can join the consensus process to boost security while creating new blocks. The Fantom apex is a full node and is very convenient to operate.

The minimum amount of FTM to run a Fantom validator node is 500,000 FTM. According to Fantom, running a node involves the following processes.

The validator reward involves the normal APY on the staked amount and the delegator reward of 15%. The APY varies based on the percentage of the entire FTM supply staked.

Other staking platforms for FTM

Other than its native blockchain network, Fantom can be staked across many platforms, including decentralized Exchanges and custodial blockchains. Below are some platforms to stake Fantom;

Ledger

Staking with Ledger works through a smart contract interaction. Users can stake from the Fantom fWallet by signing Fantom FTM Ledger Nano S application. You can earn up to 6% APY for a 365-day period or just stake with no lock-up for the base rate of 1.8% APY.

Coinbase

Users can connect their Coinbase Wallet account to their Fantom fWallet and stake their FTM tokens to earn rewards.

Binance

To stake FTM on Binance, a convenient amount of the token has to be deposited on the exchange. Next, navigate to Binance Earn and pick a suitable product. It’s usually a locked-up period of 30, 60, or 120 days. You can earn up to 14% APY for a more extended staking period.

Kucoin

A deposit of FTM token has to be made on Kucoin before navigating to Kucoin Earn. Then click “Subscribe” to pick a suitable product, based on rewards and the time corresponding time duration to lock assets.

How to stake other tokens on Fantom?

Fantom offers a flexible ecosystem for staking Defi tokens to generate passive profits from investments. It provides a flexible and dynamic ecosystem enabling the staking of several DeFi tokens. You must access a MetaMask or any other wallet mentioned above in order to stake tokens connected to the Fantom network. Fantom staking in this context acts like a Centralized Exchange where non-native cryptocurrencies are traded.

Here are some of the most popular tokens that can be staked on Fantom:

  1. Spookyswap is the biggest DEX on Fantom and BOO being its native token, which can be bonded with FTM for maximum liquidity and to yield farm. To stake the BOO token, buy in an exchange or swap them in Spookyswap; connect your wallet to the Fantom network to view your positions and start earning.
  2. BeethovenX is a community-driven DEX, an automated market maker (AMM), and a DeFi platform. It is governed by the BEETS native token and is hosted on the Fantom network and Optimism chain yielding an APR of 31%. To stake Beets, connect your wallet to Fantom Opera after depositing some FTM, and follow the procedure to choose a validator and a suitable locking time.
  3. QiDao is an autonomous and community-governed protocol that is hosted on Fantom and allows stablecoin lending with zero interest against a crypto asset used as collateral. Loans are paid and repaid in miTokens (stablecoin soft pegged to the USD).
  4. Scream is another decentralized lending protocol powered by Fantom. Users who stake SCREAM tokens can earn around 58% APR, while for liquidity providers, the rewards can be as high as 82% APR.

Conclusion

Staking on Fantom is a profitable way to earn passively on your FTM tokens. The APY on Fantom is bigger compared to other L1 blockchains. Staking FTM is safe as the validator node cannot access your staked tokens. Although ensure your mnemonic phrase or private key is safe. However, similar to other proof-of-stake blockchains, you risk losing your stake if the validator is not reputable and misbehaves. Be sure to select reputable Fantom validators with active communities, websites, and Twitter accounts.

FAQ

Is it safe to stake FTM?

It's safe to stake FTM because validation nodes won't be able to retrieve the staking token. Nonetheless, like in other proof-of-the-stake cryptocurrency platforms, it's possible to lose half your stake if the validator fails or behaves badly. Using reputable Fantom verification tools is safer and has an active social networking website and social media accounts for verification.

How much does a Fantom validator make?

Results vary based on the staking amount, term, and type selected. However, You can claim rewards as frequently as possible and compound them for greater returns on your delegation.

How do you choose a Fantom validator?

Most validators for Fantom have active communities, websites, and Twitter accounts. Do your own research and ask around in the community; they should be able to help you.

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