- Open the HydraDX app and connect your Web3 wallet
- Click “Staking” in the top menu
- Enter the number of HDX tokens you would like to stake
- Vote on referenda to increase staking rewards
HydraDX Omnipool: An Ocean of Liquidity
HydraDX is more advanced than competing DEXs because it owns much the liquidity you swap into. That Protocol Owned Liquidity helps to generate revenue for stakers. HDX staking is noninflationary, unlike other DEXs.
Additionally, users who want to support HydraDX and contribute liquidity can do so with only a single token, instead of in token pairs. All tokens slosh around in an ocean of liquidity called, The Omnipool.
Single-sided liquidity and the Omnipool make HydraDX the most efficient DEX in all of crypto.
We are fortunate to be one of the genesis collators for HydraDX, the go-to DEX within the Polkadot ecosystem. When the protocol was first born, staking was complicated and we were forced to learn about the Phragmen algorithm and how it secures DotSama by underpinning the Nominated Proof of Stake consensus mechanism.
Fortunately, the complexity for nominators is gone and HDX staking couldn’t be easier!
If you are looking to generate yield from your HDX tokens, look no further than the HydraDX DEX itself.
Where to stake HydraDX HDX tokens
1. Navigate to app.hydradx.io and connect your wallet. The DEX supports a variety of wallets, including Talisman, Polkadot JS, Trust Wallet, SubWallet, and Enkrypt. Support for additional wallets is ongoing.
2. Click “Staking” on the top menu bar.
3. Enter the number of HDX tokens you’d like to stake and click “STAKE.” You’ll notice to unstake, you simply click the other tab on top of the staking box.
Boom! Your HDX is staked and Blocks United is one of the collators verifying transactions and paying out rewards.
How to boost HDX staking rewards
The HydraDX newsletter clarifies the reward structure by saying,
“Staked HDX rewards accrue over time and cannot be instantly claimed in full. Instead, rewards vest along a dynamic bonding curve, encouraging long-term staking. Passive stakers may wait ~2 years to claim 95% of rewards, while active stakers earning maximum action points could claim 95% in just over 2 months. To switch from passive to active staking, stakers can increase their pace of claiming rewards by participating in the governance of HydraDX by voting on community referenda using the staked HDX.”
HDX staking is designed to reward those who participate and vote on protocol referenda.
After staking you will notice active referenda farther down the page. You can boost your HDX staking rewards by voting and turbocharge staking rewards by locking them up for a set number of days. It’s called the, “Conviction Multiplier.”
The multiplier allows you to lock your tokens onto the HydraDX platform for 6 extra days, 12 days, 24 days, 48 days, 96 days, or 192 days.
Locking your tokens for the maximum duration will give you the highest reward boost, but you will be unable to withdraw your tokens for 192 days.
Rewards can be claimed whenever you like, but they vest over the locked voting duration. Claiming them before the end of your lock forfeits the boost that hasn’t vested.
Staking HDX could not be any easier. Connect to the DEX, enter the number of tokens you want to stake and click the “Stake” button. Then, boost your rewards by voting on protocol referenda.
Other Polkadot guides you may want to check out
Frequently Asked Questions
HydraDX has been called the, ‘multi-headed monster of liquidity pools.’ The Omnipool will hold all the tokens traded on the DEX. That means that liquidity providers can supply a single token, whereas competing DEXs, like Uniswap require liquidity in pairs.
If you want to provide only a single token to Uniswap, you can’t.
Unlike current DEXs, the HydraDX protocol will own tokens. It will not rely solely on the contributions of crypto investors.
HydraDX will also be cross chain, so investors from the various blockchain ecosystems can come together.
HydraDX has chosen Polkadot as its home, because Polkadot was designed to communicate with other blockchains.
HydraDX will have two tokens, HDX for governance and LRNA to pay transaction fees. The protocol will hold 50% of its liquidity in the LRNA token. In time, the other 50% will be any token you can think of.
This 50/50 split is controlled by code. If you go to HydraDX and supply $1000 worth of ETH, the protocol will create $1000 worth of LRNA to match it. When you decide to withdraw your $1000 worth of ETH from the HydraDX liquidity pool, it will then destroy $1000 worth of LRNA tokens.
This keeps the supply of HDX governance tokens stable so token holders don’t get diluted, while the supply of LRNA will fluctuate wildly.
HDX holders get a cut of the platform’s trading fees, get to vote on where remaining fees go, and get to vote on which assets get added to the platform’s liquidity.
When an investor visits HydraDX to purchase LRNA tokens, the protocol takes possession of whatever token was used to swap for the LRNA. That’s how it builds its own inventory of tokens, which will become huge over time.
This is quite different from current DEX’s, like Uniswap and Quickswap. Those DEX’s rely on investors for liquidity and don’t own an inventory of tokens.
HydraDX’s inventory of tokens will have a market value, and that’s what will give the HDX and LRNA tokens their value. As its inventory grows, so too should the value of the HDX and LRNA tokens. This will allow, cheaper, faster, more efficient trades.
The protocol uses two tokens so whales can’t control governance. On other protocols, like Uniswap, liquidity contributors are paid in the UNI token and can then vote on governance proposals. If whales contribute huge amounts to LPs they can then control governance, drain yield reserves and just wreak havoc. The two-token system at HydraDX will prevent this.
HDX can be purchased on the centralized exchange, Kraken. It can also be swapped into using the HydraDX app.
Nothing we say is financial advice or a recommendation to buy or sell anything. Cryptocurrency is a highly speculative asset class. Staking crypto tokens carries additional risks, including but not limited to smart-contract exploitation, poor validator performance or slashing, token price volatility, loss or theft, lockup periods, and illiquidity. Past performance is not indicative of future results. Never invest more than you can afford to lose. Additionally, the information contained in our articles, social media posts, emails, and on our website is not intended as, and shall not be understood or construed as financial advice. We are not attorneys, accountants, or financial advisors, nor are we holding ourselves out to be. The information contained in our articles, social media posts, emails, and on our website is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation. We have done our best to ensure that the information provided in our articles, social media posts, emails, and the resources on our website are accurate and provide valuable information. Regardless of anything to the contrary, nothing available in our articles, social media posts, website, or emails should be understood as a recommendation to buy or sell anything and make any investment or financial decisions without consulting with a financial professional to address your particular situation. Blocks United expressly recommends that you seek advice from a professional. Neither Blocks United nor any of its employees or owners shall be held liable or responsible for any errors or omissions in our articles, in our social media posts, in our emails, or on our website, or for any damage or financial losses you may suffer. The decisions you make belong to you and you only, so always Do Your Own Research.