How does MATIC staking work?
Your MATIC is staked with Lido on Polygon, a popular third party liquid staking protocol. Lido on Polygon makes it easy to stake without having to manage anything on your own. When you stake MATIC with Lido on Polygon, you get a token representing your staked MATIC. This token is called stMATIC. You can unstake at any time, and it takes ~3-4 days for your MATIC to be claimable. The APR you see is inclusive of Lido’s 10% fee on rewards accrued.
What is stMATIC?
stMATIC is an ERC-20 token that represents your share of staked MATIC in the Lido on Polygon protocol. The value of the stMATIC token is constantly changing as staking rewards accumulate. If you notice 1 stMATIC being worth more than 1 MATIC, this is why.
Why should I stake MATIC?
With staking, you can get rewards on your crypto while helping secure the underlying network. You’ll get staking rewards just by holding stMATIC, with the flexibility to unstake, swap, send, or use stMATIC in a DeFi protocol. The rewards (measured in APR, annual percentage rate) are determined by the network and can vary.
What is Lido?
Lido on Polygon is a DAO-governed liquid staking protocol for the Polygon Proof of Stake (PoS) chain. It allows users to stake their MATIC tokens on the Ethereum blockchain and mint stMATIC, which represents their share of stake without the need to maintain the staking infrastructure. Users get staking rewards and still control and can use their stMATIC tokens in secondary markets on Ethereum and Polygon. Learn more about Lido.
How do I get my rewards?
The rewards you get from staking are reflected in the value of your stMATIC. If you notice stMATIC being worth slightly more than MATIC, that’s because of the rewards that have been accrued. Your rewards auto-compound - you don’t have to worry about restaking the rewards.
When you unstake your stMATIC, you’ll receive your principal plus the rewards you’ve accrued. You can unstake on the stMATIC asset detail page.
How do I unstake?
Go to the DeFi tab or your stMATIC balance.
Enter the amount you want to unstake and confirm the transaction.
You will need to pay Ethereum gas fees to unstake.
When you unstake, you’ll receive an NFT to reflect your stMATIC balance unstaked.
Note: Unstaking takes 3-4 days to process once initiated (technically: 80 checkpoints).
You'll be able to claim the same quantity of MATIC tokens as when the unstake transaction was processed, regardless of price changes. After that, you can claim your MATIC and accrued rewards. It will be displayed in the DeFi tab under the “Claimable” section. Unstaking and claiming are two separate blockchain transactions that will both require gas fees.
What can I do with my stMATIC?
stMATIC is supported on multiple DeFi protocols. Always research before engaging with DeFi dapps. Popular DeFi dapps that support stMATIC are Aave, 1inch, and Beefy. You can see a full list of dapps that support Lido.
Does Coinbase take a fee on staking transactions?
Coinbase does not take a fee on staking transactions. The network fee is a blockchain transaction fee, paid to network validators for their services to the Ethereum blockchain.
How long should I stake for?
The longer you stake your MATIC, the more rewards accrue. While you can unstake at any time, most people stake at least long enough to earn back any network fees they paid to stake their MATIC. Remember, reward rates and the price of MATIC may fluctuate. Earnings are not guaranteed.
What are the risks of staking?
The price of MATIC is subject to market changes. There’s also a risk that Lido’s staking protocol could contain unknown bugs or vulnerabilities.
Note: there is no slashing mechanism on Polygon PoS and the risk of reductions to accumulated staking balances from slashing is not part of the technology.