A Detailed Guide to Delegating Tokens on The Graph Network
This guide to delegating tokens on The Graph is based on my personal experience. I tried to make it as detailed and understandable as possible so that even beginners who have no experience with Web3.0 applications could easily understand and take part in the development of The Graph protocol.
What is The Graph protocol?
The Graph is a protocol for organizing blockchain data and making it easily accessible. Today it runs many DeFi applications, as well as applications from the broader Web3.0 ecosystem.
The protocol is supported by the participation of indexers, curators and delegators. You can learn more about the roles of participants in the protocol, as well as the protocol itself, on the official website The Graph.
For this tutorial, we will only be interested in the role of delegators.
Who can become a delegate?
Any user who wants to contribute to the development of The Graph protocol, but cannot or does not want to launch their own node can become a delegate. Instead, the delegator can purchase The Graph tokens and delegate them to existing nodes that were launched by other users.
In this case, the delegator will receive part of the rewards from the work of the indexer, and the delegated tokens will ensure the security of the entire protocol and its further development.
How to do it?
First of all, you will need to purchase GRT tokens. This can be done both on centralized sites, such as Binance, Huobi, etc., and on decentralized sites (Uniswap, Balancer, etc.)
When buying a GRT token on decentralized exchanges, take extra care and make sure you are interacting with the correct contract.
Smart contract address for the GRT token is: 0xc944E90C64B2c07662A292be6244BDf05Cda44a7
After purchasing tokens, you will need to visit the dApp page from The Graph, where, in fact, the delegation process will take place: https://network.thegraph.com
On this page, you need to log in using your wallet, which contains your GRT tokens.
To do this, click the “Connect Wallet” button located in the upper right corner of the page.
You will be offered a choice to log in via MetaMask or through WalletConnect.
You can install MetaMask by downloading an extension for your browser or a mobile application from the official website.
If your tokens are stored on a wallet created without using MetaMask, you can easily import it into MetaMask using a private key, JSON file, or a passphrase. In addition, a hardware wallet can be connected to MetaMask. You can find more detailed information about working with MetaMask here.
If you want to connect via WalletConnect, then you can see the list of the wallets that support WalletConnect here.
In my case, I use the MetaMask browser extension, so my tutorial will be built specifically for this delegation option.
After choosing the authorization option through MetaMask, you will need to tick the wallet on which your GRT tokens are located, in the pop-up window and then just to confirm this action.
In addition to GRT tokens, your wallet must also have a small amount of ETH to pay commissions on the Ethereum network.
If the authorization was successful, the address of your wallet will be displayed in the upper right corner, and by clicking on the arrow to the right of your address you can see your balance in GRT, as well as go to your profile or connect another wallet
After logging in, at the top of the https://network.thegraph.com page, you can see the main characteristics of The Graph network, and scrolling down the page below you will find a list of active indexers, as well as basic information on delegation. By analyzing this information, you can make a choice in favor of one or another indexer and delegate your GRT tokens to the option that is most beneficial for you.
In the screenshot above, I have numbered the main columns of this table, as well as the interface elements that are necessary for the delegation of tokens:
1. Search string, due to it you can find the desired indexer immediately by its ID, address or username;
2. Indexer ID or username;
3. The subgraph that is currently being indexed by this indexer;
4. The percentage of the request commission that the indexer retains for itself WITHOUT splitting with the delegator;
5. Percentage of the reward to the indexer, which he retains for himself WITHOUT division with the delegate;
6. GRT steak size personally contributed by the indexer. Can be removed from the indexer for violations during work;
7. The amount of GRT delegated to the indexer, which cannot be lost because of the sanctions applied to the indexer;
8. The total amount of commissions that users have paid to this indexer for its work;
9. The total amount of GRT awards paid to this indexer for his work;
10. A button is for delegating or picking up your GRT steak from this indexer.
Particular attention should be paid to points 4 and 5, since the profit you receive for delegation will depend predominantly on this. For example, if the values given to the indexers in these items are 10%, then 90% of the indexer’s total earnings will be distributed among the delegates. If the indexer sets the value to 90%, only 10% of his earnings will go to delegates.
Having decided on the choice of the indexer, you need to click on the button on the right side of the line opposite this indexer (number 1 in the screenshot below), and then select “Delegate” (number 2 in the screenshot below).
Further, on the right side of the screen, a menu will appear in which you need to specify the amount of tokens you want to delegate (number 1 in the screenshot below), and then click the “Submit Transaction” button (number 2 in the screenshot below).
After clicking on the button, a MetaMask pop-up window will appear, in which you will need to give permission to the site to spend your GRT tokens by clicking the “Confirm” button.
Then another similar MetaMask window will appear, in which you will need to confirm the direct sending of your GRT tokens to the selected delegator.
Note: During the delegation, 0.5% of your amount will be deducted as a commission. In my case, the commission was 0.479385 GRT from 95.877 GRT.
After successfully delegating tokens, you are able to monitor statistics and manage delegated tokens in your profile. Instructions on how to open your profile are shown in the screenshot below.
In order to delegate more tokens or pick up previously delegated tokens, you need to click on the button shown in the screenshot below in your profile and select the option you need.
In the course of their work, indexers can change the parameters (percentage of commissions and awards), on which payments to delegates depend. Therefore, delegates should check this periodically and monitor their income.
Moreover, if you decide to complete the delegation and collect your tokens, you need to remember that after that your tokens will remain blocked for 28 days. Therefore, each decision should be approached as carefully as possible.