From c2d165f7d542aed099be93cce517ccc720399116 Mon Sep 17 00:00:00 2001 From: Michael Macaulay <56690114+MichaelMacaulay@users.noreply.github.com> Date: Fri, 17 Jan 2025 15:31:41 -0500 Subject: [PATCH 1/2] Updating Delegation Page --- website/pages/en/resources/glossary.mdx | 2 + .../pages/en/resources/roles/delegating.mdx | 108 +++++++++--------- 2 files changed, 55 insertions(+), 55 deletions(-) diff --git a/website/pages/en/resources/glossary.mdx b/website/pages/en/resources/glossary.mdx index fa813b659730..4dd1c7877e14 100644 --- a/website/pages/en/resources/glossary.mdx +++ b/website/pages/en/resources/glossary.mdx @@ -22,6 +22,8 @@ title: Glossary - **Indexer's Self-Stake**: The amount of GRT that Indexers stake to participate in the decentralized network. The minimum is 100,000 GRT, and there is no upper limit. +- **Delegation Capacity**: The maximum amount of GRT an Indexer can accept from Delegators. Indexers can only accept up to 16x their Indexer Self-Stake. Additional delegation results in diluted rewards. For example, if an Indexer has a Self-Stake of 1m GRT, their delegation capacity is 16m. Indexers can increase their Delegation Capacity by increasing their Indexer's Self-Stake. + - **Upgrade Indexer**: An Indexer designed to act as a fallback for subgraph queries not serviced by other Indexers on the network. The upgrade Indexer is not competitive with other Indexers. - **Delegator**: Network participants who own GRT and delegate their GRT to Indexers. This allows Indexers to increase their stake in subgraphs on the network. In return, Delegators receive a portion of the Indexing Rewards that Indexers receive for processing subgraphs. diff --git a/website/pages/en/resources/roles/delegating.mdx b/website/pages/en/resources/roles/delegating.mdx index eda60369e00a..2e950e52659c 100644 --- a/website/pages/en/resources/roles/delegating.mdx +++ b/website/pages/en/resources/roles/delegating.mdx @@ -2,35 +2,57 @@ title: Delegating --- -Delegators are network participants who delegate (i.e., "stake") GRT to one or more Indexers. +Delegators earn GRT by delegating GRT to Indexers which helps network security and functionality. -- They help secure the network without running a Graph Node themselves. +## Benefits of Delegating -- They earn a portion of an Indexer's query fees and rewards by delegating to them. +- Strengthen the network’s security and scalability by supporting Indexers. +- Earn a portion of rewards generated by the Indexers. -## How does this work? +## How Does Delegation Work? -The number of queries an Indexer can process depends on their own stake, **the delegated stake**, and the price the Indexer charges for each query. Therefore, the more stake allocated to an Indexer, the more potential queries an Indexer can process. +Delegators earn GRT rewards from the Indexer(s) they choose to delegate their GRT to. -## Delegator Guide +An Indexer's ability to process queries and earn rewards depends on three key factors: -Learn how to be an effective Delegator in The Graph Network. +1. The Indexer's Self-Stake (GRT staked by the Indexer). +2. The total GRT delegated to them by Delegators. +3. The price the Indexer sets for queries. -Delegators share the earnings of the protocol alongside all Indexers based on their delegated stake. Therefore, they must use their best judgment to choose Indexers based on multiple factors. +The more GRT staked and delegated to an Indexer, the more queries they can serve, leading to higher potential rewards for both the Delegator and Indexer. -> Please note this guide does not cover steps such as setting up MetaMask properly. The Ethereum community provides a comprehensive resource regarding wallets through the following link ([source](https://ethereum.org/en/wallets/)). +### What is Delegation Capacity? -There are three sections in this guide: +Delegation Capacity refers to the maximum amount of GRT an Indexer can accept from Delegators, based on the Indexer's Self-Stake. + +The Graph Network includes a delegation ratio of 16, meaning an Indexer can accept up to 16 times their Self-Stake in delegated GRT. + +For example, if an Indexer has a Self-Stake of 1m GRT, their Delegation Capacity is 16m. + +### Why Does Delegation Capacity Matter? + +If an Indexer exceeds their Delegation Capacity, rewards for all Delegators become diluted because the excess delegated GRT cannot be used effectively within the protocol. + +This makes it crucial for Delegators to evaluate an Indexer's current Delegation Capacity before selecting an Indexer. + +Indexers can increase their Delegation Capacity by increasing their Self-Stake, thereby raising the limit for delegated tokens. + +## How to Delegate GRT on The Graph + + + +> Please note this guide does not cover steps such as setting up MetaMask. The Ethereum community provides a [comprehensive resource regarding wallets](https://ethereum.org/en/wallets/). + +There are two sections in this guide: - The risks of delegating tokens in The Graph Network - How to calculate expected returns as a Delegator -- A video guide showing the steps to delegate in the Graph Network UI ## Delegation Risks Listed below are the main risks of being a Delegator in the protocol. -### The delegation tax +### The Delegation Tax Delegators cannot be slashed for bad behavior, but there is a tax on Delegators to disincentivize poor decision-making that could harm the integrity of the network. @@ -40,25 +62,29 @@ As a Delegator, it's important to understand the following: - In order to be safe, you should calculate your potential return when delegating to an Indexer. For example, you might calculate how many days it will take before you have earned back the 0.5% tax on your delegation. -### The delegation unbonding period +### The Delegation Unbonding Period + +When a Delegator chooses to undelegate, their tokens are subject to a 28-day unbonding period. + +This means they cannot transfer their tokens or earn any rewards for 28 days. -Whenever a Delegator wants to undelegate, their tokens are subject to a 28-day unbonding period. This means they cannot transfer their tokens or earn any rewards for 28 days. +After the unbonding period, GRT will return to your crypto wallet. ### Why is this important? -If you choose an Indexer that is not trustworthy or not doing a good job, you will want to undelegate. This means you will be losing a lot of opportunities to earn rewards, which can be just as bad as burning GRT. As a result, it’s recommended that you choose an Indexer wisely. +If you choose an Indexer that is not trustworthy or not doing a good job, you will want to undelegate. This means you will be losing opportunities to earn rewards. + +As a result, it’s recommended that you choose an Indexer wisely.
![Delegation unbonding](/img/Delegation-Unbonding.png) _Note the 0.5% fee in the Delegation UI, as well as the 28 day unbonding period._
-### Choosing a trustworthy Indexer with a fair reward payout for Delegators +#### Delegation Parameters In order to understand how to choose a trustworthy Indexer, you need to understand the Delegation Parameters. -#### Delegation Parameters - - **Indexing Reward Cut** - The portion of the rewards the Indexer will keep for themselves. - If an Indexer's reward cut is set to 100%, as a Delegator, you will get 0 indexing rewards. - If it is set to 80%, as a Delegator, you will receive 20%. @@ -70,24 +96,22 @@ In order to understand how to choose a trustworthy Indexer, you need to understa - **Query Fee Cut** - This is just like the Indexing Reward Cut, but it applies to returns on the query fees that the Indexer collects. -As you can see, in order to choose the right Indexer, you must consider multiple things. - -- It is highly recommend that you explore [The Graph Discord](https://discord.gg/graphprotocol) to determine which Indexers have the best social and technical reputations and which ones reward Delegators consistently. -- Many Indexers are very active in Discord and will be happy to answer your questions. -- Many of them have been Indexing for months, and they are doing their best to help Delegators earn a good return, as it improves the health and success of the network. +- It is highly recommended that you explore [The Graph Discord](https://discord.gg/graphprotocol) to determine which Indexers have the best social and technical reputations. +- Many Indexers are active in Discord and will be happy to answer your questions. ## Calculating Delegators Expected Return -A Delegator must consider the following factors to determine a return: +A Delegator must consider a variety of factors to determine a return: + +An Indexer's ability to use the delegated GRT available to them impacts their rewards. -- Consider an Indexer's ability to use the Delegated tokens available to them. - - If an Indexer is not allocating all the tokens available, they are not earning the maximum profit they could be for themselves or their Delegators. -- Pay attention to the first few days of delegating. - - An Indexer can choose to close an allocation and collect rewards anytime between 1 and 28 days. It is possible that an Indexer might have a lot of rewards they still need to collect, so their total rewards are low. +If an Indexer does not allocate all the GRT at their disposal, they may miss out on maximizing potential earnings for both themselves and their Delegators. + +Indexers can close an allocation and collect rewards at any time within the 1 to 28-day window. However, if rewards are not promptly collected, the total rewards may appear lower, even if a percentage of rewards remain unclaimed. ### Considering the query fee cut and indexing fee cut -You should choose an Indexer that is transparent and honest about setting their Query Fee and Indexing Fee Cuts. You should also look at the Parameters Cooldown time to see how much of a time buffer you have. After that is done, it is simple to calculate the amount of rewards you are getting. +You should choose an Indexer that is transparent about setting their Query Fee and Indexing Fee Cuts. The formula is: @@ -105,37 +129,11 @@ This gives the Delegator a share of the pool: > The formula above shows that it is possible for an Indexer offering only 20% to Delegators to provide a better reward than an Indexer giving 90%. Simply do the math to determine the best reward. -### Considering the delegation capacity - -Finally, consider the delegation capacity. Currently, the Delegation Ratio is set to 16. - -#### Why does this matter? - -This means that if an Indexer has staked 1,000,000 GRT, their Delegation Capacity is 16,000,000 GRT of delegated tokens that they can use in the protocol. Any delegated tokens over this amount will dilute all the Delegator rewards. - -Imagine an Indexer with 100,000,000 GRT delegated to them, but their capacity is only 16,000,000 GRT. This means effectively, 84,000,000 GRT tokens are not being used to earn tokens. So, both the Delegators and the Indexers are earning less rewards than they could be. - -Therefore, a Delegator should always consider the Delegation Capacity of an Indexer, and factor it into their decision making. - ## Delegator FAQs and Bugs ### MetaMask "Pending Transaction" Bug -1. When I try to delegate my transaction in MetaMask, it appears as "Pending" or "Queued" for longer than expected. What should I do? - At times, attempts to delegate to Indexers via MetaMask can fail and result in prolonged periods of "Pending" or "Queued" transaction attempts. -#### Example - -Let's say you attempt to delegate with an insufficient gas fee relative to the current prices. - -- This action can cause the transaction attempt to display as "Pending" in your MetaMask wallet for 15+ minutes. When this happens, you can attempt subsequent transactions, but these will only be processed until the initial transaction is mined because transactions for an address must be processed in order. -- In such cases, these transactions can be cancelled in MetaMask, but the transactions attempts will accrue gas fees without any guarantee that subsequent attempts will be successful. - A simple resolution to this bug is to restart the browser (e.g., using "abort:restart" in the address bar), which will cancel all previous attempts without gas being subtracted from the wallet. Several users who have encountered this issue have reported successful transactions after restarting their browser and attempting to delegate. -## Video Guide - -This video guide reviews this page while interacting with the UI. - - From f33f560c2a7917a72e60b738933cf4246f36257b Mon Sep 17 00:00:00 2001 From: Michael Macaulay <56690114+MichaelMacaulay@users.noreply.github.com> Date: Fri, 17 Jan 2025 15:45:59 -0500 Subject: [PATCH 2/2] Fixing errors --- website/pages/en/resources/roles/delegating.mdx | 9 ++++----- 1 file changed, 4 insertions(+), 5 deletions(-) diff --git a/website/pages/en/resources/roles/delegating.mdx b/website/pages/en/resources/roles/delegating.mdx index 2e950e52659c..06d7c428fb3d 100644 --- a/website/pages/en/resources/roles/delegating.mdx +++ b/website/pages/en/resources/roles/delegating.mdx @@ -6,17 +6,17 @@ Delegators earn GRT by delegating GRT to Indexers which helps network security a ## Benefits of Delegating -- Strengthen the network’s security and scalability by supporting Indexers. +- Strengthen the network’s security and scalability by supporting Indexers. - Earn a portion of rewards generated by the Indexers. ## How Does Delegation Work? Delegators earn GRT rewards from the Indexer(s) they choose to delegate their GRT to. -An Indexer's ability to process queries and earn rewards depends on three key factors: +An Indexer's ability to process queries and earn rewards depends on three key factors: -1. The Indexer's Self-Stake (GRT staked by the Indexer). -2. The total GRT delegated to them by Delegators. +1. The Indexer's Self-Stake (GRT staked by the Indexer). +2. The total GRT delegated to them by Delegators. 3. The price the Indexer sets for queries. The more GRT staked and delegated to an Indexer, the more queries they can serve, leading to higher potential rewards for both the Delegator and Indexer. @@ -136,4 +136,3 @@ This gives the Delegator a share of the pool: At times, attempts to delegate to Indexers via MetaMask can fail and result in prolonged periods of "Pending" or "Queued" transaction attempts. A simple resolution to this bug is to restart the browser (e.g., using "abort:restart" in the address bar), which will cancel all previous attempts without gas being subtracted from the wallet. Several users who have encountered this issue have reported successful transactions after restarting their browser and attempting to delegate. -