WAVES FAQ: Leasing Waves
When you lend your WAVES to a node, you can receive dividends in return. We will try to answer many of the frequently asked questions about Leasing Waves in this article.
I want to lend my WAVES to a node, where can I find a list of nodes?
If you want to help keep the network decentralized and robust, we suggest that you lend your WAVES to a small node such as ours:
or you can find a list of generating nodes here: http://dev.pywaves.org/generators-monthly/.
Is it safe to loan WAVES?
Yes, your WAVES will never leave your wallet and even if the node is hacked you will lose nothing.
Is it better to loan WAVES to a smaller or bigger node?
A bigger node will forge blocks more frequently but you will have to share the dividends with many other members while a smaller node will forge blocks less frequently but the profits will be divided amongst fewer members. You will know if a node is small or big just by viewing the Average Gen. Balance column in the web page linked above.
Can an estimate be given of the ROI one will obtain by lending WAVES?
Presently, the ROI (Return on Investment) of the WAVES platform is not at its optimum; the revenues of these nodes are on the low side and for the time being generating low profits. However, some are willing to take the plunge and are open to loan their WAVES, aware that at the moment they will not get an exceptional ROI. Consult this google sheet for an approximate simulation.
When a node generates a block, it tries to include in it all the unconfirmed transactions found in the pool that meet the criteria of the node (type of assets accepted as a fee, minimum fees). The income of the node is composed of:
The probability that a node forge a block is directly linked to the ratio between its stacked WAVES and the total of the generating WAVES (It's a bit more complicated, if you want more details about the algorithm, consult this document). For example, if the total of the generating WAVES is 1000000 and the stack of a node is 10000, the node will have (approximately) a percentage of 10000/1000000 = 1% to forge a block. Because in a day 1440 blocks are forged, the node will be able to forge approximately 14 blocks a day.
Example
- Node A has a stack of 10,000 WAVES and holds 20% of the Fees;
- You have loaned 1000 WAVES to the node;
- The total of WAVES generating on the nodes is 1000000.
=> The node finds a block and the sum of the Fees is 0,3 WAVES. You will receive 0,3 * 80% * 1000/10000 = 0.027 WAVES.
I have lent WAVES to a node, why didn't I receive any dividends?
Nodes usually schedule payments every week or two. You may not have received any dividends for the following reasons:
- The node did not generate any block in the period;
- When lending your WAVES, the loan is active after 1000 blocks (more or less after 24 hours): if the node generates a node before 1000 blocks have passed, you are not entitled to dividends for that block
Let us clarify the second point with an example:
- Leased 1000 WAVES to node A at block 800000
- The node A forges block 800300
=> You will not be able to take dividends from fees of block 800300 as your lease will be active from block 801000.
How can I lend WAVES to a node?
Very simple - it will take just 2 minutes. Follow this tutorial on how to lend WAVES.