Staking and Restaking Lava Tokens
Lava token holders can utilize their tokens through staking and restaking. This allows them to earn yield on their tokens while simultaneously helping secure the network and directing RPC traffic to high-quality providers.
Staking
Lava validators are responsible for securing the chain, producing blocks, and validating transactions. Lava token holders can stake a specific amount (delegation) to a selected provider and earn yield.
Where does the staking yield come from?β
By staking to a provider, a staker expresses trust in the provider, which boosts the provider's capacity to contribute to the network and increases their rewards. As validators get paid for their service, a portion of that payment goes to the staker.
How to pick a validator to stake with?β
The amount each staker earns is directly influenced by the validator's performance and the commission set by the validator. When choosing a validator, consider the following factors:
- Estimated APR β Directly impacts the amount of yield you receive.
- Commission β Affects the net yield you earn.
- Voting power β Indicates how many other stakers trust a particular provider.
Is it possible to move a delegation to a different validator?β
You can always change the validator you are staking with. To do this, you must first unstake from the selected validator and then stake your Lava tokens with a different validator of your choice. Keep in mind that Lava follows the standard Cosmos unstaking timeframe, which is 21 full days.
How to stake Lava tokens?β
Staking and restaking are supported by several popular Web3 platforms. Check out a detailed guide for staking and restaking.
Restaking
Lava token holders can take their stake one step further by restaking to selected Lava RPC providers. By doing so, restakers (Lava token holders who stake with validators and restake with providers) express their trust in specific Lava RPC providers, boosting their stake weight and helping direct RPC traffic toward high-quality providers. In return, they earn yield on their restaked tokens.
Where does the restaking yield come from?β
Providers compete among themselves to serve incoming RPC requests. Lava Network distributes traffic to the most eligible providers based on their stake weight (self-stake and delegations from restakers) and the quality of service they provide (speed, data freshness, and service availability). Restakers express their trust in a provider by restaking with them, increasing the providerβs chances of receiving more RPC traffic. As providers earn revenue from the RPC requests they handle, a portion of that revenue is distributed to restakers as yield.
How to pick a provider to restake with?β
The yield you receive is directly influenced by the provider's performance and the commission they set. To choose a well-performing provider, consider the following:
- Reputation Score β Represents the providerβs quality of service.
- Delegation β Reflects how much other restakers have delegated to a provider.
- Provider APR and Commission β Impact the yield you earn.
You can see the estimated APR for specific providers on the Lava staker's page.
Is it possible to move a delegation to a different provider?β
You can always change the provider you are restaking with. When switching providers, the change takes effect immediately.
How to restake Lava tokens?β
Staking and restaking are supported by several popular Web3 platforms. Check out a detailed guide for staking and restaking.