Stake SWTH
Earn staking rewards in real-time
Carbon adopts the dPOS staking mechanism where SWTH is staked to a network of validators who secure the protocol in return for block rewards.
Staking SWTH allows you to:
Earn rewards: Select one or more validators and start earning crypto assets; When the staking transaction is complete, rewards will start to be generated immediately. Stakers can send a transaction to claim their accumulated rewards at any time.
Vote for the future: Staking SWTH grants the right to vote on proposals and make decisions on the future of the protocol.
Secure the chain: With SWTH, you have the superpower to contribute to the security and governance of the Carbon protocol.
How To Stake
Buy SWTH, or connect your wallet to access your available SWTH, on CarbonHub.
Choose a validator you would like to stake with on CarbonHub.
Enter the amount of SWTH tokens you want to stake.
Start earning rewards. You will receive rewards every second from your staked assets.
Read here for a walkthrough on how to stake your SWTH.
Staking Rewards
65% of block rewards accrue to stakers. Rewards are distributed proportionately to the amount of SWTH staked, while unstaked tokens do not attract any rewards at all.
The percentage of block rewards allocated to staking rewards can be adjusted via protocol governance.
Staking rewards are generated and distributed to staked SWTH holders in the following ways:
SWTH Emissions
The total supply of SWTH is inflated to reward stakers. SWTH holders that do not stake do not receive rewards, meaning their SWTH get diluted over time.
If 100,000 tokens are set to be distributed to stakers through block rewards, and 50% of SWTH tokens are bonded, all 100,000 tokens will go to the 50% of SWTH stakers (in pro-rata fashion). In the simplest case where you are the only staker, all 100,000 tokens will go to you.
The yearly inflation rate of SWTH can be found here.
Trading Commissions
What really differentiates Carbon from other protocols is that staked tokens receive rewards from trading commissions, on top of just network fees and token emissions.
This means that staking SWTH earns rewards whenever any trade is executed. This gives an extremely high upside potential for SWTH stakers, depending on the trading volume on Carbon.
Read more on trading commissions here.
Network Fees
Network fees collected on the Carbon blockchain go towards block rewards and are distributed to staked SWTH holders.
Read more on network fees here.
Collateralized Debt Position (CDP) Fees
CDP-related fees collected on the Carbon blockchain go towards block rewards and are distributed to staked SWTH holders. This means that staking SWTH earns rewards whenever any money market operation happens (e.g. borrow or liquidation happens).
Read more about CDP fees here.
Staking Safely
Staking SWTH is not risk-free. If a validator has downtime or underperforms, a small portion of the SWTH delegated to them may be slashed (burnt).
To mitigate these risks, it is recommended to choose your validators with care. View your validators' slashing history from the CarbonScan explorer or the SWTH staking interface on CarbonHub.
To mitigate risk, SWTH holders can also consider delegating to multiple validators.
Read more on how to stake safely in our FAQ section.
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