Arbitrum staking allows $ARB token holders to earn rewards by participating in governance. Arbitrum has introduced native staking initiatives to enhance token utility and governance participation. Several DeFi platforms within the Arbitrum ecosystem offer ARB staking or yield farming opportunities, each with unique reward structures and risk profiles.

The Arbitrum Foundation has announced plans to introduce staking utilities, including collaborations with projects like Tally, which is working on a liquid-staked $ARB model. However, these plans are still evolving, and the full details of Arbitrum’s staking framework have yet to be finalized.

Several platforms provide $ARB staking, each offering different rewards. But even if you choose the best platform, you still have to consider the strategies for maximum rewards and know what mistakes to prevent. Understanding strategies, risks, and reward structures is crucial to maximizing returns. Our guide will provide you with all the necessary insights.  

Key Takeaways

  • Arbitrum staking allows holders to participate in governance and earn rewards.
  • The Arbitrum Foundation has introduced a liquid-staked $ARB token, boosting its utility and governance use cases.
  • Top platforms for staking Arbitrum include Arbitrum One, Binance, and Aave V3.
  • To maximize staking rewards, diversify your portfolio, utilize staking pools, and stay informed about market trends.
  • Avoid common mistakes like skipping research, overlooking fees and terms, and underestimating security risks.

Arbitrum Staking: Summary

This guide covers everything you need to know about staking the ARB crypto coins, starting with what it means and how it works. We’ll list several platforms that offer this option, highlighting their benefits and drawbacks. Beyond platform selection, we’ll share staking strategies to maximize rewards while also identifying common mistakes that stakers make, so you can avoid them. Finally, we’ll discuss the benefits and risks of staking the ARB coin, helping you determine whether it aligns with your investment and DeFi participation goals.

What is Arbitrum Staking?

Before you start learning about Arbitrum staking, we recommend you read our Arbitrum review article first. It’s important to understand the basics before you try staking. Also, to stake, you will need to have some ARB tokens. If you don’t have any yet, check out our easy guide on how to buy Arbitrum. In addition to being a governance token, ARB provides opportunities for staking, enabling holders to participate in network validation and receive rewards. The process includes depositing the tokens to a staking platform or smart contract and using a staking pool.

In August 2024, the Arbitrum Foundation introduced a proposal for a liquid-staked $ARB token to enhance utility and governance. Over 25k participants supported the proposal, known as ARB Staking: Unlock ARB Utility and Align Governance, with 91% approval. The proposal allows $ARB holders to stake and delegate their coins in return for stARB, introduced through the Tally protocol. 

Arbitrum Staking
Source: Shutterstock

As the ARB token’s price had fallen by 63% since the beginning of 2024, hitting an all-time low, this proposal was considered a potential catalyst for reversing the downtrend.

The stARB coin will support the automatic compounding of future rewards, compatibility with many DeFi applications, and flexible restaking options for enhanced yield potential. $ARB token holders who stake and actively delegate their coins will receive additional sequencer fees as a reward. Karma Score will define active delegates, combining on-chain voting stats, Snapshot voting stats, and forum activity. 

The proposal outlines future staking ARB developments, including the Time Boost mechanism to support decentralized block production. Additionally, the proposal introduces the BoLD protocol, which aims to open up Arbitrum’s validation system and enforce fixed time bounds on dispute resolution.

How Does Arbitrum Staking Work?

Staking $ARB is designed to enhance utility and governance by enabling users to stake their cryptocurrency while retaining delegation power. They can delegate their $ARB to a staking pool and validate transactions. 

As for the 2024 liquid-stake ARB proposal, it will include a combination of several modular elements that power the system:

  • Governance staking: It requires coins to be delegated to an active delegate so that they are eligible to earn rewards. It accepts arbitrary fee sources as rewards and is built on Uniswap’s audited UniStaker. Each set of staked tokens is kept in its own specialized smart contract that handles its own voting power, with upgrades only being made through a Constitutional Proposal from the Arbitrum DAO. Every user has a staking vault and can use governance staking.  
  • The DAO: It can turn on fee distribution, send fees to ARB staking, and control how delegates receive voting power.
  • stARB (Tally Protocol LST): This is a liquid receipt token for staked ARB, allowing users to redeem their tokens 1:1 plus rewards. If enabled, it auto-compounds rewards and retains holders’ liquidity. The contract is non-upgradable and immutable, except for the delegation strategies that Arbitrum DAO controls. A short withdrawal period may be set to prevent reward abuse. stARB holders can delegate voting power, and if deposited into certain DeFi or centralized platforms, the DAO can reallocate its voting power through a Flexible Voting client.

Where to Stake Arbitrum: Top Platforms For Staking ARB

When it comes to staking this coin, different protocols and platforms provide different benefits, depending on your risk tolerance and goals. That said, there are three options for staking ARB:

  • DeFi protocols: You can use Arbitrum in lending platforms or liquidity pools for extra income streams.
  • On-chain staking: You can stake the tokens directly or by using a staking pool to earn governance rewards.
  • Centralized platforms: Some exchanges provide staking services.

Now, let’s review the best staking platforms for Arbitrum:

Best Wallet

Best Wallet is one of the most popular non-custodial wallets of 2025. And rightly so, it isn’t just your normal wallet where you store your cryptos for safety. Think of it as a one-stop shop for crypto. Thanks to its integrated DEX, which makes buying, selling, swapping and staking cryptos possible. Unlike other platforms, you don’t need to open five tabs just to stake your cryptos. It’s a web3 wallet that is free to download and pretty convenient to use; it is best for beginners and advanced traders.

How to stake Arbitrum
Source: Best Wallet

One of its most unique features is “Upcoming Tokens” section that lets investors participate in crypto presale projects before they hit the mainstream market for trading. This mobile wallet also comes with strong security features such as 2FA and biometric authentication, and it has third-party insurance through Fireblocks. If you want to learn more about this wallet, check out our dedicated Best Wallet review.

Visit Best Wallet

Arbitrum One

Staking Arbitrum on Arbitrum One means locking up your $ARB tokens on the Arbitrum One network and participating in the network’s validation process while protecting the network. 

Yet, Arbitrum staking is still in development and not fully accessible, and currently, becoming a validator requires being on an allowlist. For updates, check the official documentation and announcements. Also, stay informed about new crypto launches on the Arbitrum network, as they may present additional staking opportunities and potential rewards for ARB holders.

Even though stakers protect the network and enjoy governance and rewards, the process is still under development, and currently, only those on the allowlist can become validators.

Binance

Binance is one of the biggest crypto exchanges with high liquidity. As we’ve outlined in our Binance review, the Binance Earn feature offers many products, including staking services. There are over 180 cryptocurrencies that you can use in at least one of the products offered on Binance Earn, with new Binance listings often expanding available staking options. 

You can stake Arbitrum on the platform with a flexible duration and earn staking rewards with an APY of 0.03%. Let’s put this into numbers: if you stake 10,000 $ARB tokens, you can get + 3.86974468 $ARB in a year. The minimum amount for staking is 0.01 $ARB.

Staking Arbitrum on Binance has a low entry requirement of only 0.01 $ARB, as well as no lock-up period. However, the APY is relatively low, at 0.03%. 

Visit Binance

Aave V3

Another platform integrating $ARB is Aave V3 on Arbitrum, where ARB was officially added to the liquidity pool through an Aave Improvement Proposal (AIP). $ARB staking on Aave V3 Arbitrum allows collateral usage, enables borrowing, and has a supply cap of 20 million $ARB with a borrow cap of 16.5 million $ARB. 

Aave V3 on Arbitrum also offers an $ARB lending option through Yearn.Finance Vaults. The current reward rate for lending ARB is 0.18%, with estimated yearly rewards of $18.

Staking Coins to Consider Besides Arbitrum

While Arbitrum offers a promising staking opportunity, you might as well want to explore our list of the 13 best staking coins for more diversified reward options.

How to Stake Arbitrum? A Step-By-Step Guide

Let’s go over the steps of staking ARB:

  • Pick a Platform

    Choose where to stake ARB, this could be a centralized exchange, a decentralized protocol, or directly through the Arbitrum network. Each option has different levels of control, risk, and reward potential.

  • Get Arbitrum Tokens

    To stake, you’ll first need $ARB tokens. You can purchase them on popular platforms such as Binance, Nexo, and other major crypto exchanges.

  • Set Up an Arbitrum Wallet

    Install and configure a wallet that supports Arbitrum, such as MetaMask or WalletConnect. Ensure it’s ready to interact with the Arbitrum network and that your $ARB tokens are stored safely.

  • Delegate Your Arbitrum Tokens

    Use a staking pool to delegate your $ARB. Pools combine tokens from multiple users to improve the chances of earning rewards. Compare pools based on reward rates, lock-up periods, and overall risk profile.

  • Start Staking

    Once your deposit is confirmed, you can begin staking and validating transactions on the Arbitrum network. In exchange, you’ll earn staking rewards in $ARB.

How Much Can You Earn by Staking $ARB?

Arbitrum staking rewards depend on the chosen platform. For example, Binance offers staking with a 0.03% APY, meaning that if you stake 10k $ARB, you can get 3.87 $ARB in a year. Still, the rate might change over time. With the introduction of stARB, future rewards could be enhanced due to automatic compounding and additional sequencer fees for active delegates.

Tips & Strategies for Maximizing ARB Staking Rewards

Follow these smart strategies and earn maximum rewards:

  • Diversify your staking portfolio: Don’t stake all your $ARB tokens on one blockchain, but spread them across multiple networks. However, research the different networks’ lock-up periods, requirements, and risk profiles.
  • Use staking pools: They allow you to stake without running your own validator node. Staking pools merge the resources of several stakers and, in return, distribute rewards to the pool participants based on their contributions.
  • Stay updated on market trends and adjust to them: With the volatility of crypto markets, the value of your $ARB can fluctuate easily. For example, if your staked $ARB’s price rises significantly, you may consider unstaking it and selling a portion. Then again, if their price declines, you might want to increase your stake to gather more $ARB tokens and potentially benefit from higher rewards when the price recovers.
  • Choose long-term staking for compound growth: Compound staking is a powerful strategy. By reinvesting your staking rewards consistently, you can increase your total staked balance over time, resulting in an exponential rise in rewards.

Benefits and Risks of Staking Arbitrum

Benefits:

  • Governance rewards: Users get these rewards for contributing to the network’s decision-making process.
  • Liquidity rewards: Such rewards are received by users who choose to stake through DeFi protocols.
  • Control over your tokens: You can unstake whenever you want, although a short withdrawal period may apply.

Risks:

  • Lock-up periods: Many platforms require users to lock up their coins for a certain period. 
  • Market volatility: $ARB’s price can fluctuate substantially, resulting in users receiving less than they initially staked. 
  • Smart contract risks: DeFi protocols are known to have exploitable vulnerabilities.

Arbitrum Staking vs. Polygon Staking: A Comparative Analysis

While Polygon uses a PoS consensus mechanism to secure transactions, Arbitrum uses Optimistic Rollups, relying on Ethereum mainnet’s security. Arbitrum’s staking is primarily for network participation and governance, with reward structures evolving over time. In contrast, Polygon offers established staking rewards for securing its network, with APYs varying based on multiple factors.

Polygon’s gas fees are lower than Arbitrum’s, which, while cheaper than Ethereum’s, remain higher than Polygon’s. Sounds complex? It is. The stARB can offer a withdrawal period. However, discussions are ongoing, and the final implementation details may evolve. With Polygon, withdrawal times are transparent and typically approved within only three hours. 

Feature Arbitrum Staking Polygon Staking
Consensus mechanism Optimistic Rollups (relying on Ethereum) PoS
Staking purpose Network participation and governance Securing the network
Reward structure Evolving over time Established APYs
Gas fees Lower than Ethereum but higher than Polygon Lower than Arbitrum
Unstaking period stArb will probably have a short withdrawal period Withdrawals approved within three hours

Mistakes to Avoid When Staking Arbitrum

Make sure you avoid the following mistakes when staking Arbitrum:

  • Neglecting thorough research: It is important to understand Arbitrum’s viability, vision, and underlying technology before committing. Analyze the onboarding and reference guide to assess its historical performance and the development team’s reputation. Also, follow news and market analysis to stay informed about the latest developments that could impact the staking rewards.
  • Ignoring fees and staking conditions: Many stakers don’t take into account the conditions related to staking ARB. Make sure to understand the terms, fees, lock-up periods, and potential penalties for early withdrawals. 
  • Underestimating security risks: Security should be a priority when staking any coin, including $ARB. Pick secure staking platforms and non-custodial wallets, taking into account features like two-factor authentication and encryption protocols. 

Best Practices to Stake $ARB Coins

Here are the top practices for Arbitrum staking:

  • Delegating to an active governance participant: That way, you can qualify for potential rewards.
  • Using stARB: If you want to keep liquidity while staking, use this token via the Tally protocol, allowing for staking and DeFi participation. 
  • Evaluating staking rewards: Compare APYs, staking duration, and other incentives. 
  • Considering reputable staking pools: Pick well-established pools with a proven performance and security track record. They enable you to combine your $ARB tokens with other participants, increasing your chances of earning rewards.
  • Reevaluating and adjusting your strategies: Since the crypto market is dynamic, strategies for $ARB staking should adjust properly. Regularly reassess them depending on network updates, market conditions, and your financial goals. Explore new staking opportunities, adjust your portfolio, or reallocate your $ARB to maximize your returns.

How to Unstake $ARB – A Detailed Guide

The withdrawal period is short and configurable by the DAO. In case of a price difference, arbitrageurs can immediately unstake stARB and sell it as ARB to close that difference. 

Since this is still under development, we’ll provide a step-by-step guide of how it is expected to work based on current governance discussions:

  • Go to the Staking Platform

    Visit the official staking interface or an approved DeFi protocol that supports ARB unstaking. Ensure you’re using a trusted platform.

  • Connect Your Wallet

    Make sure your wallet is connected to the Arbitrum One network. MetaMask or any compatible wallet will work.

  • Find the Unstaking Option

    Look for the ‘Unstake’ or ‘Withdraw’ section. If you’re using a platform like Tally, locate the feature to convert your stARB back into $ARB.

  • Enter the Amount

    Specify how many tokens you want to unstake. Double-check the number before proceeding.

  • Approve the Transaction

    Click on ‘Unstake’ and confirm the transaction in your wallet. Be aware of gas fees when confirming.

  • Wait for the Withdrawal Period

    Once submitted, monitor the status of your pending withdrawal. This step may take some time, depending on network and platform settings.

  • Claim Your Unstaked Arbitrum

    After the waiting period ends, claim your unstaked tokens. They will then be available in your wallet.

Conclusion: Arbitrum Staking

As Arbitrum continues growing, staking opportunities will evolve, with $ARB potentially becoming one of the top staking coins. From innovative DeFi integrations to advanced governance models, ARB’s staking future promises even more ways to earn rewards while supporting the network’s growth.

As mentioned, the stARB proposal also outlines future $ARB staking developments, including the Time Boost mechanism to support decentralized block production and an efficient MEV market and potential Arbitrum’s BoLD protocol integrations.

Arbitrum staking allows ARB holders to participate in network validation and receive rewards. The Arbitrum Foundation’s recent proposal includes a liquid-staked $ARB token to enhance utility and governance, but the initiative is still under development. Staking $ARB is designed to enhance utility and governance by enabling users to stake their crypto while keeping delegation power. They can delegate their $ARB to a staking pool and validate transactions. 

Still, there’s something you can do in order to maximize your rewards, like diversify your portfolio, monitor market trends, adjust to them, and use staking pools. When staking, make sure you don’t make the same mistakes as many other stakers, like neglecting research, ignoring the fees and conditions, and underestimating security risks. If you decide you need your staked $ARB, there’s always the option to unstake them. 

See Also:

References

FAQs

Does Arbitrum have staking?

Expand

Yes, it does. ARB provides opportunities for staking, enabling holders to participate in network validation and receive rewards.

Where can I stake my Arbitrum (ARB) coins?

Expand

The best platforms for ARB staking are Arbitrum One, Best Wallet, Binance, and Aave V3. 

Is Arbitrum a proof of stake chain?

Expand

As a Layer 2 scaling solution for Ethereum, Arbitrum doesn’t operate on a PoS consensus mechanism. Instead, it uses Optimistic Rollup technology to process transactions off the main Ethereum chain.

How to vote on Arbitrum?

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Go to Snapshot and connect your wallet. Open the Arbitrum DAO Snapshot and find the proposal you would like to vote on. Alternatively, you can click on the Snapshot link in the forum submission. Follow the prompts within Snapshot’s UI to vote.

How much rewards can you earn by staking Arbitrum?

Expand

One can currently earn around 2.7% APY by staking Arbitrum through validator-based services. However, a proposal for native ARB staking at 8% APY is in progress but not yet live.

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