Stake $ALEX

This doc explains how to stake in ALEX with AutoALEX & Manual Staking option.

How to Use AutoALEX

The ALEX staking pool now offers two staking options: auto-staking with AutoALEX (atALEX) or manual staking. In this post, we’ll explain the difference.

What’s the Difference Between “Auto Staking” and “Manual Staking”?

Both auto-staking and manual staking receive rewards at the end of every cycle (525 Stacks blocks or about 3.5 days).

The difference is Auto-staking is done through atALEX which automatically harvests and re-stakes your rewards, generating passive compound interest. For more information please see “AutoALEX: The Power of Compound Interest.”

With manual staking, to generate compound interest, you must first harvest then re-stake your rewards. We have, however, created an “Auto Stake” function that will re-stake manual rewards into AutoALEX in a single transaction.

Auto-Staking with AutoALEX

Mint your ALEX into atALEX and just hold it in your wallet and it will grow in value, relative to ALEX, completely passively. The advantages of atALEX are:

  • ✅True passive income.

  • ✅Greater APY as you never run the risk of missing a rewards cycle or pay regular transaction fees.

  • ✅Liquidity with no staking lockup. You can withdraw atALEX in any amount at any time using the ALEX/atALEX pool.

  • ✅Capital efficiency. atALEX can be used as collateral to participate in IDOs or to swap into other tokens and still receive auto compounding gains.

Manual Staking (Customized Staking)

Stake your ALEX and manually harvest the reward after every cycle. The ALEX staked manually will require executing a “harvest” transaction to collect, and there will be a “cool down” cycle with no rewards received, once your custom-selected number of staking cycles end.

If you have ALEX staked in manual (customized) staking,

  • ✅The longer you stake, the fewer (cool down) cycles you will have, which produces a greater average APR.

  • ✅You must harvest rewards after every cycle, otherwise the rewards will just accumulate with no interest earned.

  • ✅“Auto Stake” now allows you to convert your cycle rewards into atALEX in a single transaction.

  • ❌ Liquidity: Manually staked ALEX is locked up until the end of the rewards cycles.

  • ❌ Capital Efficiency: Manually staked ALEX can not be used as collateral.

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