The Graph Delegation Blog — A Tutorial on How to Become a Delegator on Ethereum and Arbitrum Network
Graph Protocol offers a unique opportunity for individuals to participate in the decentralized future and earn passive income by becoming a delegator. This tutorial will guide you through becoming a delegator and explain what it means to delegate your stake in the Graph ecosystem. 🚀 (Hop onto this rocket and go to the moooon!!)
What is the Graph Protocol?
The Graph is a revolutionary decentralized protocol that empowers individuals to index and query data from blockchains, starting with Ethereum And Arbitrum. Its unique capabilities allow easy access to previously challenging data to query directly. This opens up endless possibilities for building and utilizing decentralized applications that can access data from the Ethereum blockchain securely and efficiently.🤯
What is Delegation? 🤔
Delegation on the Graph Protocol allows network participants to support the network’s security and integrity without running a Graph Node. By delegating their GRT tokens to one or more Indexers, Delegators are contributing to the network’s stability and earning a share of the rewards earned by the Indexer through query fees and other incentives.
By allocating a greater amount of stake to an Indexer, Delegators can increase the Indexer’s potential for processing more queries, thus earning more rewards.
Where to find more information?
For a much more detailed understanding of Delegation, you can visit
The Graph https://thegraph.com/docs/en/network/delegating/
The Graph Academy Delegator Knowledge Hub https://thegraph.academy/delegators/.
Who is a Delegator? 🤵
Delegators play a crucial role in maintaining the security and decentralization of The Graph Network. They participate in the network by staking GRT tokens to one or multiple Indexers. Indexers are node operators that index and serve data through subgraphs, which are open APIs. By doing so, Indexers earn indexing rewards and query fees paid by data consumers like Uniswap.
However, with the support of Delegators, Indexers would be able to earn these rewards and fees. As a result, Indexers actively seek to attract Delegators by offering them a share of the indexing rewards and query fees they earn. In this way, Delegators play a vital role in ensuring the stability and success of The Graph Network.
Wondering how to Delegate or How to Become a Delegator? Don’t worry. We got you covered! 🥹
Head to thegraph.com.
Click on Products and head to Graph Explorer.
After heading to Graph Explorer, Connect your wallet.
After Connecting Your Wallet, Head to Participants and select Indexers.
here you can find the lists of Arbitrum Indexers
https://thegraph.com/explorer/participants/indexers?chain=arbitrum-one
The Indexer Table shows a lot of information, such as the Subgraph they query, the Estimated APR, the Total amount Staked, the Total Rewards given, and the total amount of effective cut. Read this information carefully in order to make an informed decision.
Select your Preferred Indexer.
Here Are The Advantages of Arbitrum Indexing
Arbitrum indexing brings several advantages to users. Firstly, it offers high performance and consistent returns on Layer 2, allowing users to stake their assets and earn rewards with ease. Additionally, Arbitrum indexing minimizes the hassle of staking by providing a user-friendly experience. Moreover, it leverages the benefits of Layer 2 technology, resulting in significantly reduced gas fees compared to other platforms. This cost-efficiency makes it more accessible and affordable for users to participate in staking and earn rewards on the Arbitrum Indexer.
Click on Delegate, check the relevant details related to the indexer stats, such as shown below, and enter the amount you want to delegate. This shows the Effective Reward Cut and its breakdown and Delegation Available. Check this, and enter the amount you wish to Delegate.
After verifying the transaction and completing it from your wallet, you will have successfully become a delegator to that indexer.
If you wish to check your rewards, delegation, etc., you must scroll down on the same page. Upon scrolling, you will see this.
Enter your wallet address to see your activity, rewards, and other details.
To move your GRT from exchanges like Binance or Coinbase to an ARbitrum wallet in a cost-effective manner, Additionally, it’s worth noting that some exchanges also support the transfer of USDC to the ARbitrum network, you can follow the steps below:
1. Transfer ETH from your exchange account to your ARbitrum (ARB) wallet.
2. Use Uniswap within your ARB wallet to swap your ETH for GRT. This step incurs minimal gas fees.
For more detailed instructions and guidance on moving your GRT to the ARB network, you can refer to the following blog post: https://medium.com/@paulieb.eth/the-graph-funding-your-billing-for-queries-edda102d12b2
The blog post provides additional information and insights, especially if you want to fund your account without paying the cost of bridging your GRT over the bridge when ETH gas prices are high.
The Graph Protocol is an amazing way to become a part of the decentralized revolution. Becoming a delegator is an easy and profitable way to get involved with the network. With the right understanding and guidance, anyone can join the network and benefit from the rewards and fees that come with it. With the knowledge of the process, how to set up a delegation, and the different types of rewards, you can become a successful delegator and help contribute to the decentralized future.
Disclaimer: Delegating on the Graph protocol involves certain risks and requires a comprehensive understanding of the potential rewards and considerations. When you delegate to an indexer, you have the opportunity to earn rewards, but it’s important to note that your delegation remains under your control at all times. While the indexer plays a role in processing queries and maintaining the network, they do not have direct access to your tokens or the ability to run off with them.
However, it is crucial to exercise caution and conduct thorough research before delegating. It is recommended to choose reputable indexers with a proven track record and a strong reputation in the community. Look for indexers that have demonstrated reliable performance, secure infrastructure, and transparent communication. Additionally, consider diversifying your delegations across multiple indexers to mitigate any potential risks.
Check out our Video on how to Delegate to an Indexer here 👇👇
Are you excited yet?
You should definitely be excited about the Graph because not only does it index data on the blockchain, but it also offers the latest news and updates. Check out the Graph Website, Twitter, and Discord for more information.
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