Auto-compound staking

Explaining Litentry Auto-Compound Staking feature

Users help to maintain the Litentry network by staking their LIT tokens to delegate collators through the parachain staking pallet. By design, staking rewards are automatically deposited into the users' wallets and the deposited token is available for the user to use based on their discretion.

However, Litentry being a protocol that is inclined towards increased capital efficiency and better utilization rate of assets for our users recently launched the auto-compound staking feature.

With this feature, the staking rewards earned by a user is automatically returned to the staking pallet at the click of a button so that the user can continue to earn more reward. The user determines the total amount (percentage) of the reward that is re-staked into the corresponding reward-generated staking position.

You may follow the guide below to explore the auto-compound staking feature.

Polkadot.JS

The auto-compound staking feature is only available on Polkadot.JS for now.

To get started, hover your mouse on the Developer button at the top of the page and select 'Extrinsics' from the drop-down options:

Once selected, choose ParachainStaking from the 'Submit the following Extrinsics' drop-down options as shown in 1 below.

By method, select setAutoCompound from the 'Add white list of candidates' drop-down options as shown in 2 below. It is important to note that the delegator's staking positions on every collator are separate. As such, you should continue if there is an existing position for you on the corresponding as shown in 3 below. Finally, set the percentage of your reward you'll like to re-delegate to the collator in the staking pallet as shown in 4 below and submit the transaction.

Based on the information provided in the extrinsics below, the user's (delegator) auto-compounded setting on Collator 1 will be 50% of his reward. It is effective immediately at the next reward distribution process and half of the reward will be automatically re-staked.

You may also directly stake a new position with a specified auto-compound staking setting if there is no existing position for you on the corresponding Collator. The method to select here under the 'Add white list of candidates' is delegateWithAutoCompound. After this, select your desired auto-compound percentage and submit the transaction. This will open a new staking position for you just like the traditional delegate method but with an auto-compound staking setting.

Cumulon

As earlier mentioned, the auto-compounded staking setting is only available on Polkadot.JS and is currently not supported by Cumulon. We will update this documentation once the option is available.