Auto-compounding or Restaking in the Cosmos Ecosystem

Cosmos

Jan 24, 2023

4 min read

Auto-compounding or Restaking in the Cosmos Ecosystem

Auto-compounding or automatic restaking is a feature that has become more and more popular in the Cosmos Ecosystem, and for good reason. Cosmos cryptocurrencies such as $ATOM, $JUNO, $UMEE, and more have a manual claiming and restaking mechanism. Automatic restaking of digital assets lets users reinvest the returns generated from staking a cryptocurrency into the staking process. This is typically done in order to increase the amount of cryptocurrency being staked and thus increase the potential rewards earned through the staking process.

By implementing auto-compounding, you remove the restake step in the staking process. Remember, though, that there is no Cosmos-blockchain-native DApp offering restaking at the moment. Therefore, it’s important to DYOR when it comes to these restaking solutions.

Disperze

The first auto-compounding option we explored is limited to the Evmos Network and is called Disperze. Disperze offers restaking with Keplr Wallet, MetaMask, and Ledger. The dashboard lets you track the current community pools, amount staked, total balance, rewards, assets, etc (see image below).

Disperze Restaking Solution Screenshot

Through “Cancel Unbond” it is possible to cancel the unbonding period and automatically restake. Instead of waiting the ~14 days to unbond, you can stake again, avoiding any loss of rewards in the process.

REstake.app

In our previous article, we wrote a step-by-step guide on how to use the REstake App (see link below). Thus, in this article, we will keep it short.

The Ultimate REstake Auto-Compounding Guide
Looking to auto-compound your Cosmos Hub digital assets? Have a look at this step-by-step guide.

As the name suggests, the REstake App lets you restake and thus auto-compound staked Cosmos assets. A big difference between this platform and the others mentioned in this article is that the REstake App is available for all Cosmos Networks.

REstake App Dashboard

The app offers the following: staking, restaking, and undelegating. The REstake App is built on Agoric Network, an open-source development Proof-of-Stake with a JavaScript-native smart contract platform that offers developers a safe, reusable library of DeFi components to rapidly build and deploy on-chain applications. More about Agoric is in the article below.

An Introduction To Agoric
Enterprise-grade DeFi and Smart Contracts blockchain built on Cosmos SDK

Yieldmos

Yieldmos aims to boost yields by auto-compounding your rewards. They show you potential yield generation opportunities across the Cosmos ecosystem all in one platform. Remember that their platform's illustrated APRs and APYs do not account for validator commission and any needed transaction fees.

Yieldmos Website

Using Yieldmos gives you access to different “Yield Boost” strategies, from re-staking your staking rewards to auto-compound liquidity pool rewards.

The platform is intuitive and gives you clear information in most app sections. A unique feature is that you can compound your delegation rewards into the validator of your preference, whereas the previously mentioned platforms only auto-compound to the same validator.

Yieldmos Strategy Settings

When confirming any strategy, you will be served with information about the duration of the auto compound, the number of delegations, and the validator; you can even add an email to stay updated about your staking activities.

Closing thoughts

Managing crypto assets can be time-consuming, especially regarding re-staking across multiple networks. Some users prefer the manual approach, while others prefer automation. The Cosmos Hub offers a variety of tools and protocols that can assist users in this regard. It’s important to note that users have different preferences regarding managing their crypto assets. The more options that are available, the more likely it is that mainstream adoption will occur. While restaking is one option that users may want to consider, it’s important to do your own research before testing out any new tool or protocol. This statement is not a recommendation or endorsement.


DISCLAIMER: This is not financial advice. Staking, delegation, and cryptocurrencies involve a high degree of risk, and there is always the possibility of loss, including the failure of all staked digital assets. Additionally, delegators are at risk of slashing in case of security or liveness faults on some protocols. We advise you to do your due diligence before choosing a validator.

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