Staking - BAND (Beginners' How-To Guide)

Staking - BAND (Beginners' How-To Guide)

By Mynima | Hobbyist Mining | 30 Dec 2020


Introduction

As many of you will be aware Band Protocol was recently featured as a part of the Coinbase Earn campaign. At the time I was quite excited to see Band featured here because the project really has come on leaps and bounds this year. In the learning videos we saw that the main goal of the project was:

Band Protocol is a cross-chain data oracle platform that aggregates and connects real-world data and APIs to smart contracts.

oracles

Indeed, it is a way for contracts to reach out and interact with external data sources in order to action the rules underpinning the contracts algorithms. In fact an excellent example of an Oracle in action can be seen in the Ampleforth Protocol where price Oracles are used to drive the decision making for the Contraction and Expansion phases of supply adjustment. 

roadmap

While the initial learning videos offered by Coinbase indicated that BAND was an ERC-20 token I remember that some months back the Atomic Wallet migrated all ERC-20 versions of BAND to their own chain. This means that while we've earned some ERC-20 BAND on Coinbase we're not ready to full integrate with the benefits of holding the tokens.

In this article we'll go through the process of converting ERC-20 BAND to the BandChain version and then onto staking it for around ~17% returns.

 


How-to Swap and Stake

The first step in this process (as suggested from the introduction) is to convert our existing ERC-20 tokens to BAND on BandChain. To do this there are two options:

Because the technical route involved generating a new Band address, and (if you're like me) you'll like already have an address you want to use associated with your atomic wallet, I opted for the trading route. That is to say, we're going to trade in our old BAND for some shiny new ones. To do this I opted to use the well known non-custodial trading platform ChangeNow, but first we need to consider fees.

Given that BAND on Coinbase is an ERC-20 token I decided to first convert it to XLM. The reason for this was simple, any small amount I lot by converting would be considerably less than anything I would pay in Gas fees by withdrawing as an ERC-20. The bonus as well is that Steller has no withdrawal fee on Coinbase and also is near instant which make the process of swapping less likely to result in massive changes of price during the process.

 

The Swap

 

Step1: Click on Sell at the top of the Coinbase account and choose the 'Convert' Tab. Then select the BAND tokens you wish to convert and select XLM as the output coin. Don't convert yet as this will give you estimated output amount so you can check before you transfer.

Step1

 

Step 2: Visit ChangeNow (or an alterative, like Swapzone) and key in the trade amounts. I actually have a ChangeNow widget embedded into my website so please feel free to use that one.

swap

 

Step 3: Once you're happy with the trade value and you have your Atomic Wallet Band address to hand start the ball rolling converting in Coinbase and entering the final XLM amount into ChangeNow. Be aware that you will need to withdraw from Coinbase your XLM to the address indicated on the ChangeNow transaction. Make sure that you only use the correct Atomic Wallet Band address as the destination.

band_address

Exchange

Once it is complete you'll see messages like these (fortunately I actually go more that was estimated originally).

complete

arrived

 

The Stake

 

Step 1: Select the staking section of the Atomic Wallet application (desktop or mobile will work). Then click on 'Band Protocol' to see the details of the stake (17% is on par with Zilliqa and AWC!).

stake1

 

Step 2: Click 'Stake' and enter the amount to be staked (or press stake all). Note that it will hold back enough for the transactions and to allow you to be able to Unstake at a later date

stake2

 

Step 3: After entering the amount click Stake and take note of the information below (there is a 21 day lock after unstaking so factor this into your withdrawal plans). Enter your password and click 'confirm'.

stake3

 

Step 4: Done! Congratulations, you are now staking BAND and earning 17% for your trouble.

stake4

 


Final Thoughts

Despite the first bit of the process being a little time consuming, having received ERC20 tokens from Coinbase (though it was free so we cannot complain!), the staking itself is really straight forward through Atomic Wallet. Two things to bear in mind though with BAND staking (if you are normally used to Tezos) is that:

  • There is a 21 day lock after unstaking
  • You need to claim your rewards yourself, they don't compound automatically.

Fortunately, claiming the rewards is easy enough. Just go back to the stake page and click on the 'Claim' button next to your rewards.

Anyway, if you have not yet completed the BAND Coinbase Earn items yet then please feel free to use the following link:

https://coinbase.com/earn/band/invite/b05ght2f 

 

Thank you very much for reading, I hope you found this information useful. Happy Staking and Good Luck y'all!

 

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Mynima
Mynima

Hobby miner and Crypto interested programmer. https://mynima.github.io/


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