This guide is dedicated to all people that are part of Cosmos ecosystem and are interested in earning rewards by staking. We present you a feature that will make your life easier when staking: auto-compounding.
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What is auto-compounding?
Auto-compounding is the process where you no longer have to manually claim your rewards and restake them back. You let a Dapp do this for you and in this way you maximize the APR received.
For the Cosmos ecosystem we can use Restake app built by Eco Stake.
What is Restake app?
Basically REStake app will let your validator auto-compound your staking rewards for you. All you have to do is delegate and authorize them to carry out certain transactions for you. This tool can be used by any validator.
What is Restake app?
First of all let's stake, so make sure you have Keplr wallet extension installed. Now access https://restake.app/ :
In the main Dashboard, look for the search bar and enter the name of the network you want to re-stake for. In our case, we will be using Kava as an example.
Click on the network of your choice and a full list of validators will appear. Connect your Keplr wallet and search for your validator. In our case stake2earn. By approving this access, you will authorize the validator to keep delegating to their validator:
Now the next step is to select “Enable” on the right side of the validator’s name. A pop-up window will appear with four tabs.
In this window you will find
- the validator’s profile, illustrating their website, address, commission rate, APU, voting power, etc.
- the delegate tab that can be used in case you haven't delegated yet
- the restake tab
- the ledger instructions.
Now click on ‘Restake’ tab and now you can set a maximum amount that you’d like to automatically restake as well as the expiry date. Select whatever suits you best and then select “Enable REstake”.
Congratulations! You have successfully given your validator restake permission, and you are ready to sit back and relax, but still earn your rewards. You are now getting benefit of auto-compounding rewards system.
Important! You still can undelegate and ungrant by simply selecting “manage” on the right side of the validator’s name and selecting “disable restake”. Normal unbonding mechanisms will apply.
