Delegating: Step 1 How to delegate?
A step-by-step guide on how to delegate to The Graph Network.
About The Graph
Through The Graph Protocol anyone can make and use open APIs to query networks like Ethereum and IPFS. The protocol is already used by staple names in DeFi and web3, such as Uniswap, Synthetix, Aave and Compound. The protocol is run as an open data economy, fuelled by The Graph token (GRT). Each time a query is made, a small fee is paid to the protocol. The protocol also has new issuance, as well as token burns. More about The Graph token economics can be found here
There are several roles in The Graph Network. In this article, we are looking at the delegator role.
Delegators contribute to the network by delegating (“staking”) their tokens to an “indexer”. Indexers are indexing and serving data through open APIs. In return, delegators will earn a portion of the query fees and indexing rewards that the indexer earns. This process requires very little technical knowledge, and we will walk you through it step by step.
- Install MetaMask
- Add GRT to MetaMask
- Transfer your tokens to MetaMask
- Connect MetaMask to The Graph Network
- Choose an indexer
- Delegate to an indexer
You can connect to The Graph Network with MetaMask or any WalletConnect-compatible wallet. In this guide, we will use the MetaMask browser extension. If you haven’t used MetaMask before, it can be found at https://MetaMask.io/download.html. If you need help to install MetaMask, a tutorial can be found here.
General Crypto security guidelines apply here; Backup your seed phrase in a safe place. To learn more about security in crypto please consult this link.
Add GRT to MetaMask
MetaMask doesn’t show GRT tokens automatically. We will need to add the GRT token address to MetaMask.
1. Click on the MetaMask extension
2. Click on “Assets"
3. Click on “Add Token”
4. Click on “Custom Token”
5. Add the following information
Token Contract Address: 0xc944e90c64b2c07662a292be6244bdf05cda44a7
Token Symbol: GRT
Decimals of Precision: 18
6. Click "Next"
7. Finally click on “Add tokens”
Great! You have now added the GRT token address to MetaMask. When you send GRT tokens to MetaMask, you will be able to see the tokens in your wallet.
Transfer your tokens to MetaMask
The next step will be to add tokens to your wallet. The delegation contracts are deployed on the Ethereum network, and interacting with them costs gas (ETH). So you will need to send both your GRT tokens and a small amount of ETH to your wallet.
To find your wallet address you can click on your wallet name to copy your Ethereum wallet address to the clipboard.
Alternatively, you can click on “…” , then select “Account details” to see your Ethereum address and a QR code that links to this address.
You will now need to send your GRT tokens and ETH to this wallet address. This process will be slightly different for each exchange/wallet. Please look at the documentation for your exchange, regarding how to perform a “withdrawal”. NOTE: Double check your withdrawal address before sending any tokens. For larger amounts, consider sending a test-transaction first, to ensure you entered the right address.
The transaction might take a while to process – anywhere from minutes to days depending on the exchange and how congested the ethereum network is at the time. When the transaction is finalized, you should be able to see your ETH and GRT in your wallet. You are now ready to connect to The Graph Network.
Connect MetaMask to The Graph Network
If you have been following this guide so far, you should have a MetaMask account with your GRT and some ETH to pay for contract interactions. Make sure you are logged in to your MetaMask wallet. Go to https://network.thegraph.com/. Click on Connect Wallet in the upper right, then choose “MetaMask”.
Your MetaMask should ask you if you want to connect to The Graph Network. If you have more than one wallet in your MetaMask account, select the wallet with your GRT. Click “next”, then “connect”. Your MetaMask is now connected to The Graph Network.
Choose an indexer
The next step is to choose an indexer to delegate your tokens to. When you delegate your tokens, a 0.5% delegation fee is incurred. You also lock your tokens for a minimum of 28 days. It is very important that you choose an indexer that you believe will be profitable, and that you can trust.
We have dedicated a separate segment especially on “How to choose an indexer” which you can find here.
Another segment of this website gathers what indexer node operators themselves have written about their strategy and fee structures. You can find it here.
Delegate to an indexer
You have chosen an indexer, and are ready to delegate your GRT.
Click on the blue button on the right hand side. Then click “Delegate”.
A sidebar will appear on the right side of the screen. Here you will see some additional information about the indexer. To delegate GRT to this indexer, input the amount you’d like to delegate, then click “Submit Transaction”.
You are not done yet. Your MetaMask will now perform two contract interactions. The first one will allow The Graph Network to spend the specified amount of GRT tokens. While you can click on confirm, we recommend increasing the gas first. This will speed up the process, and usually doesn’t make too much of a difference in price.
To increase the gas, click “edit”, then click on “fast”, then save. You can now click on “confirm”.
When the permission has been added to the blockchain, MetaMask will prompt you for another contract interaction. This time it will ask you to confirm sending your GRT to the delegation contract. Click on “confirm”. Wait for the interaction to finalize on the blockchain. Once you get a small notification from MetaMask, you are done.
Congratulations! You are now delegating on The Graph Network. Earning fees and rewards, while also helping secure the network.
You can see your delegated tokens by visiting your dashboard here.