Liquid Staking: Unlocking the Potential of Staked Tokens
Liquid staking enables token holders to unlock the value of their staked assets without waiting for the staking period to end.
In this article, we will provide a short guide on how to stake Wonderland (TIME) tokens and earn passive income through collecting MEMOs. We will be looking at the Avalanche Wallet, TraderJoe, MetaMask and last but not least - Wonderland.money. The guide features five in-depth steps which will help anyone who is into crypto and DeFi to be able to buy $TIME and stake it. Regardless, of your knowledge and experience about the web3 world, this article will be beneficial to you and help you stake your TIME tokens easily.
Also, at DCVX, we can help you build your own NFT Marketplace, launch a smart contract, develop an NFT project or provide you with general blockchain consulting. So if you are interested in this article or anything DeFi, then please make sure to send us an email, so we can discuss how the future of Web 3.0 and DeFi 2.0 can be achieved.
In addition, if you still have not read our article about what is Wonderland (TIME), then definitely check it out before you begin with our guide below.
Step 1. - DeFi Wallet or Crypto Wallet
The first step would include creating a DeFi wallet and adding funds to it or using any DEX (Decentralized Exchange) which supports transfers funds from and to the Avalanche network. This can be achieved by using numerous ways, however, we will leave that up to you - the DeFi users, to decide what works best and suits your needs. If you are not sure or you are new to the web3 space, then check out our article about The Best DeFi Wallets. Our article will help you decide which is the best wallet given current industry and community standards. Other notable wallets which have been included in the article are Binance and Crypto.com's wallet which also offer a great platform for sending crypto.
After you have successfully created a DeFi wallet, you will need to add the desired amount of funds from a fiat currency and buy $AVAX tokens. The next step is to send funds to your Avalanche (AVAX) wallet. However, before you do that, you will need to set up an Avalanche Wallet.
Step 2. - Set up an Avalanche Wallet
What is Avalanche?
Not familiar with Avalanche ($AVAX) yet? In short, Avalanche (Ethereum) or $AVAX is an open, programmable smart contracts platform for decentralized applications which allows users to execute transactions on the Ethereum network. Transactions are processed quicker and for a much lower gas cost than the Ethereum network itself.
Avalanche (AVAX) is being named as the Layer 1 solution and $ETH killer. It has quickly gained popularity in recent times and is a popular Ethereum alternative due to its amazingly cheaper and faster transaction timing and processing power. Avalanche blockchain attempts to address the downfalls of the preceding blockchains such as security, centralization, and last, but not least - scalability.
In addition, it claims to be cheaper (currently with lower gas fees), faster and more secure blockchain than Ethereum itself. Avalanche has adopted a PoS (Proof-of-Stake) consensus mechanism. The transaction times are as low as 3 seconds. Also, according to research, it is should be able to handle over 4500 TPS (transactions per second). As a result and thanks to the low fees and faster transaction timing, Avalanche is considered an excellent solution for decentralized finance (DeFi). Therefore, many users and most likely you would be interested in Avalanche because of its capabilities. Moreover, Avalanche features the main network which is its subnet that is divided into three separate chains. As such, below are the three main chains:
- Exchange chain (X-Chain)
- Platform chain (P-Chain)
- Contract chain (C-Chain)
Setting up an AVAX wallet
After learning what Avalanche is, we can proceed to set up an Avalanche wallet. This is achieved by visiting the Avalanche Wallet website - https://wallet.avax.network/.
Then, users can either choose to create a new wallet or use their existing one. For this guide, we will select an existing wallet as we have already created one. However, it takes less than two minutes to set up an Avalanche wallet. The most important part here is to make sure the unique key phrase is saved and stored in a location where no one else has access. The key phrase plays a crucial role and if it is lost, so will the access to the Avalanche wallet. In the below image, you can see a fully connected Avalanche wallet:
At this stage, you should visit your crypto or DeFi wallet and send/withdraw funds to your Avalanche Wallet. It is crucial to send funds to the X-Chain, so please make sure that you are either scanning the correct chain's details or you are manually inputting the X-chain's correct address. Funds should arrive within a minute or two, so keep refreshing. Once your Avalanche balance is updated. You will have to transfer your funds from the X-Chain to the C-Chain. Transferring the funds will result in a small cost and will be executed almost instantly. If all steps have been followed accordingly, your balance will now be in the C-chain.
Step 3. - Transfer Avalanche to MetaMask
The next step would include having a MetaMask Wallet and sending funds from Avalanche C-Chain to MetaMask.
What is MetaMask?
In a few words, MetaMask is the most well-known crypto wallet on the market. MetaMask has been created by Aaron Davis from Consensys in 2016. The crypto wallet, which also functions as an application programming interface (API), is suitable for and can be connected to any Ethereum-based decentralized applications on the market. However, if you would like to learn more about MetaMask, then check out our article about what MetaMask is and our other articles on How to Connect MetaMask to Avalanche.
So, after understanding what is MetaMask, we must add AVAX tokens to the wallet.
Connecting to Avalanche manually
To accomplish this, users have to open up the browser MetaMask extension and select the Network button titled Ethereum Mainnet which will open a drop-down menu.
The dropdown menu where Custom RPC must be selected should resemble the image below:
From there, users have to navigate and click on the Custom RPC option will prompt them to input data. The data includes: network name, new RPC URL, chain ID, currency symbol and block explorer.
Users can enter the following Avalanche RPC network input data below:
- Network Name: Avalanche Network
- New RPC URL: https://api.avax.network/ext/bc/C/rpc
- ChainID: 0xa86a or 43114
- Currency Symbol: AVAX
- Block Explorer URL: https://cchain.explorer.avax.network/
Once users have completed the correct data input and have clicked on Save, then they will be able to switch to Avalanche from the application’s drop-down list in the future. As a result, MetaMask and Avalanche will be successfully linked. Here is an image of the correctly completed custom RPC:
Upon completion of the abovementioned steps, the Avalanche Network should be visible in your MetaMask wallet. All that is needed now is to go back to your Avalanche wallet's C-chain balance. From there, you should select the Send button, select the C-chain and paste your MetaMask address. Lastly, you will need to press confirm and the transaction will be complete. You will now see your AVAX tokens stored in your MetaMask wallet.
Step 4. will require you to visit Trader Joe's DEX.
Step 4. Swap AVAX for TIME at Trader Joe
What is Trader Joe?
Trader Joe is your all-services at one place decentralized trading platform based on the Avalanche network. It combines DEX services with DeFi lending to offer leveraged trading. Trader Joe has set out to serve the community at the frontiers of DeFi by innovating, building fast and most importantly, building securely. The ultimate goal is to build a trading platform, that provides users with a true ‘one-stop-shop’ DeFi experience. Additionally, Trader Joe allows users to Swap, Stake, Farm, Lend, Borrow, and Leverage their crypto funds.
How to swap AVAX tokens for TIME tokens
- Visit Trader Joe's website at: https://traderjoexyz.com/
- Switch networks on your MetaMask wallet from Ethereum Mainnet to Avalanche Network
- Go to the Trade tab
- Swap AVAX for TIME
How to add TIME tokens to MetaMask
Add Time tokens manually from Coinmarketcap by copying the contract's address and adding it to MetaMask: 0xb54f16fB19478766A268F172C9480f8da1a7c9C3
Simply, open up MetaMask and click on the Import Tokens functionality where you can paste the smart contract address.
After successfully adding the tokens to your MetaMask wallet, you should be able to view your current amount of AVAX and TIME tokens owned.
Step 5. Stake Time tokens on Wonderland.Money
The last step is to go to Wonderland's website - wonderland.money. Connect through the Enter App button. A new page will open in a separate tab and will prompt you to sign in with your MetaMask wallet running on the Avalanche Network. Otherwise, the website will remind you to switch to the Avalanche network. Ultimately, your TIME tokens will be displayed there. The only action needed here is to click on Stake and to choose the number of TIME tokens to be staked.
Staking allows you to earn TIME passively via auto-compounding. By staking your TIME with Wonderland, you receive MEMOries (staked TIME) in return at a 1:1 ratio. After that, your MEMOries balance will increase automatically on every epoch (8 hours) based on the current APY.
The MEMOries address on Avalanche is 0x136Acd46C134E8269052c62A67042D6bDeDde3C9.
To learn more about Wonderland, check out our previous article on what is Wonderland.money.
If you enjoyed reading this article and would like to learn more about DeFi and build your own DeFi project or receive blockchain consulting, then please feel free to contact our team of elite developers who can help you achieve great results and become the pioneer of our future. Also, if you would like to learn more about the services our company offers, then definitely check out the Services page.
For more related articles feel free to scroll down this page or visit our designated Blog page which will keep you up-to-date with the latest trends in the web3 world.
