How to Earn Rewards Staking with Matic
Ethereum might be one of the most popular blockchain networks for earning staking rewards, but it’s far from the only one. Using your self-custody wallet, you can also stake tokens on other networks, such as MATIC, the native token of Polygon.
Polygon is widely considered to be a “layer 2” blockchain, meaning it is built alongside Ethereum’s blockchain to help facilitate faster transactions, and typically with lower gas fees. Users can bridge their ETH to Polygon’s blockchain, and use many of the same dapps that exist on ETH. If you stake your $MATIC, your tokens are pooled together with other tokens to help maintain the reliability and decentralization of the network. And in exchange, you’ll earn rewards in $MATIC.
Okay, I want to earn some rewards. What should I do?
We’re going to start by showing you how to stake MATIC, using a popular staking dapp called Lido. Lido supports liquid staking for $MATIC as well as $SOL, $ETH, and more.
There’s currently more than $9.7 million of MATIC staked on Lido, and those who have their MATIC staked earn a share of the distributed rewards. You can stake as little MATIC as you’d like, and you can unstake instantly, since Lido is what is called a “liquid staking solution.”
To start, open up your Coinbase Wallet app, navigate to the browser, and go to lido.fi. Tap the menu icon in the middle of the screen, select Stake Now and choose Polygon.
You’ll be taken to a screen where you can choose how much of your MATIC you’d like to stake, review the transaction costs, and see what your annual return on staking will be. Currently, staking MATIC on Lido returns 8.7%, significantly higher than the national average savings account interest rate of .006%.
And that’s it! You’re now staking MATIC!