What is staking?
Staking is the process of locking SWTH to support the security and operations of the TradeHub network. You can Stake/Delegate your SWTH tokens on 1 or more Validators.
Validators run a full node and participate in consensus by broadcasting votes and committing new blocks to the chain.
What is Bonded/Unbonding?
Bonded refers to the state which your SWTH are staked and earning rewards.
Unbonding refers to the state where your SWTH are unstaked but are not yet tradeable/transferable due to an earlier unstaking action. The unbonding period for SWTH is 30 days. During those 30 days you will not earn any rewards.
There is no unbonding period when you redelegate/restake your SWTH tokens to a different validator.
What are the rewards for staking?
Staking rewards consist of:
- “Block Rewards”, which are SWTH tokens generated by the network with each block
- “Fee Rewards”, which are the fees that traders pay for using the network.
These are distributed in proportion to the amount of SWTH staked.
How much are the rewards for staking?
During the first 4 years of Switcheo TradeHub operation, the number of tokens issued as block rewards will start with an initial weekly emission rate of 1.92% in Week 1 and then decay by 1.65% week-on-week. Tokens will be issued at a constant rate in Year 5. After Year 5, no more new tokens will be issued.
Is there a minimum staking amount?
No, there is no minimum amount.
Is there a minimum staking period?
During Phase 0, you will not be able to unstake or withdraw your tokens. Once Phase 1 starts (planned for September) you will be able to unstake your tokens after 24 hours. Note: there is a 30 day unbonding period for unstaking. During this time rewards are not accumulated.
What are the risks of staking?
Validators have no control over your staked SWTH tokens and your SWTH tokens always remain in your possession/TradeHub wallet.
However, your staked tokens can be slashed in the event your delegated validator commits a penalty.
What happens if a validator commits a penalty?
Staked tokens will be slashed by:
- 5% when a validator double signs a block.
- 0.1% when a validator misses signing more than 10% of its blocks in a 36000 block sliding window (ie approx. 3600 blocks in 10hrs).
If a validator is slashed, the delegators funds are automatically unbonded to protect against further losses and the validator is “jailed” and must manually rejoin the network after a delay period.
My staking rewards are not in my wallet.
Your staking rewards are claimable to your TradeHub account via the “Your Staking” page.
Does staking SWTH generate rewards from liquidity pools or insurance products?
No, these are separate programs. We will release details on these in due course.
What is the difference between Demex or Tradehub staking?
Tokens are staked on TradeHub which is a blockchain network which matches and execute trades. Demex is the first frontend web application to use the TradeHub platform.