# Token staking

**Staking WAGMI Tokens**

Users have the ability to stake their **WAGMI** tokens to receive **sWAGMI**. The **sWAGMI** token represents a staked version of **WAGMI**.

**sWAGMI** token contract address on Metis is:

0x5fb3983adc4dCc82A610a91D2e329F6401352558

**sWAGMI** token contract address on Kava EVM is:

0x3690d1a9fb569c21372f8091527ab44f1dc9630f

**sWAGMI** token contract address on Sonic is:

0x4b5d9db7910448e2F236509D9eE242673AFa28aA

Link to the staking page is available here: <https://app.wagmi.com/#/stake/swagmi>

* **Network Compatibility:** **WAGMI** can  be staked on Metis and Kava EVM Network.
* **Benefits of Staking WAGMI:**
  * Holders of **sWAGMI** are eligible for a share of the fee distributions from the Wagmi protocol.
  * Protocol takes 20% performance fee which is then distributed to **sWAGMI** holders.
* **Unstaking:** When you unstake **sWAGMI**, you will receive all your initially deposited WAGMI in addition to any accumulated fees.
* **Note:** There is a 24-hour time lock on deposits to mitigate the risks associated with front running.

**How does staking work?**

The staking mechanism for **WAGMI** token is both straightforward and user-friendly.

**1. Depositing into the Pool:**

* Users deposit **WAGMI** tokens into the **sWAGMI-Pool**.

<figure><img src="https://587341777-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FB2LIlYKuWe8T1B5r4daq%2Fuploads%2FW8jCd1K0Mrn9W9swzM2N%2FsWagmi.jpg?alt=media&#x26;token=1794483f-929c-44d2-b054-3b7e59019aba" alt=""><figcaption><p>By staking Wagmi, users recieve sWagmi</p></figcaption></figure>

**2. Receiving Tokens:**

* As an acknowledgment of their deposit, users receive **sWAGMI** tokens in their wallets.
* These **sWAGMI** tokens represent the share of the **sWAGMI-Pool** owned by the depositor.

**3. Fee Collection and Usage:**

* Fees are garnered from the protocol. These are used to market purchase **WAGMI** tokens. Later on, these tokens are deposited back into the **sWAGMI-Pool**.

**4. Unstaking Process:**

* When users choose to unstake, they secure their share from the **sWAGMI-Pool**. This share consists of the originally staked **WAGMI** tokens as well as any additional fee shares.

**5. Important Notes on Token Quantity:**

* The amount of **sWAGMI** tokens users get from staking might differ from the **WAGMI** token quantity they deposited. As the pool grows from fees, 1 **sWAGMI** token's value will surpass that of 1 **WAGMI** token.

**6. Return Rates:**

* Returns from **sWAGMI** are variable. They rely on the core performance of the protocol's offerings. Thus, any displayed APR is an approximation based on historical performance.