How to delegate, stake your ADA on Cardano Shelley with Ledger Nano S/X with Yoroi wallet?

The time has come! You can now delegate your ADA. The official Daedalus wallet was released 29 July 2020, but here we are going to look at how you can delegate your stake with Ledger Nano S/X or Trezor hardware wallet with Yoroi wallet.

What is delegation? Delegation is a process of delegating ADA to a staking pool. Staking pools actually make the Cardano network as they produce “transactions” (blocks). If someone that holds ADA does not have a technical skill or desire to run a staking pool, they can still get the rewards proportionally based on the amount of ADA delegated to a staking pool.

Note 1: Daedalus supports delegation, so if you have a Daedalus wallet or a paper wallet see the guide here. Shortly we will also publish a guide for delegating with a hardware wallet in Daedalus.

Note 2: Trezor device is also supported. You can follow this guide for now and ignore the Ledger specific parts.

Note 3: If you want to delegate ADA with a hardware wallet you can also check our Adalite tutorial. Adalite wallet UI is a bit simpler than Yoroi. It is developed by Vacuumlabs which was contracted to develop the official Cardano Ledger/Trezor app.

Warning: Use this tutorial at your own risk. It comes with no guarantees.

Ledger live (Nano S)

Note: Screenshots are using dark theme, so your Ledger Live colors may differ.

Manager screen
Firmware update popup
After update showing version 1.6.1 or higher

Installing Yoroi wallet

Note: If you are having problems please try to use Chrome or Firefox browser.

Yoroi download page

3. New tab with browser specific plugin should open. Click “Add to Chrome” if using Chrome.

4. Browser popup will open. Click “Add extension”

Yoroi wallet on Chrome web store
Chrome extension confirm dialog

5. You can open the extension clicking the puzzle button (on Chrome).

Open Yoroi wallet

Yoroi wallet — Initialization

Language selection

3. Read and check checkbox for terms & conditions. Click “Continue”.

Terms screen

4. Choose “Simple” if you are not experienced with Blockchain projects.

UI Complexity

5. Click “Allow”. Browser popup should open. Click “Allow” once more. OS system confirmation dialog should open (if windows). Confirm the default behavior.

6. You should now come to the wallet creation screen.

Yoroi — wallet creation

Note: This tutorial is focused on hardware wallet interaction (Ledger). You can create or restore wallet from passphrase (words) here. Remember “not your words not your money”!

2. Click “Cardano”. Probably there are going to be other assets here in the future.

3. Select your hardware device type. We are using Ledger in this tutorial.

4. Click “Shelley-era wallet” wallet. This will create a new type of wallet.

5. Connect your Ledger click “NEXT”.

6. Click “CONNECT”.

7. Select specific device. (If using Ledger)

8. Pick up your Ledger device and confirm public key export. It can happen that the hardware device will ask to confirm the export key twice. Confirm it both times.

9. Name your wallet. Click “Save”.

Example naming

10. Congratulations. You have created a fresh Cardano wallet on your Ledger!

Moving funds from your old Cardano Ledger wallet

If you are a new hardware wallet user and didn’t previously hold funds on the wallet (before Shelley) you can skip this section.

On Ledger you should be asked to transfer the funds automatically. If you already have the previous funds move to the next section. For other wallet types try with “Claim / Transfer”. Here we are describing a manual way of transferring the funds. It is equivalent to the automatic way.

Note: We couldn’t try automatic/manual moving of funds as we already restored our wallets in adalite.io. Therefore this section is more theoretic.

“Add new wallet” and switching between wallets

3. You should now have an old (Byron) and a new (Shelley) wallet. Two wallets in total. You can switch between them clicking “My wallets” or from the “arrow” dropdown in the wallet (image above).

4. You should see your “old” ADA balance in the wallet (Byron — Ledger wallet). Wallet also has a note on top as seen on the image bellow.

Byron wallet

5. Now switch back to the Yoroi Shelley (Shelley — Ledger wallet) wallet.

6. Click “Receive”. Copy/paste Your wallet address.

7. Switch back to Byron — Ledger wallet (The one with your previous balance).

8. Click “Send”.

9. Paste in previously copied address.

10. First try to do a test send of 1 ADA to the copied address. Switch the wallets to confirm that 1 ADA came.

11. If it works fine and you see the 1 ADA in the new Shelley wallet, repeat the step and send all of the ADA to the new Shelley wallet.

You should see the balance in your Shelley wallet

12. Congratulations! You have now migrated to the new wallet which is much powerful and can be used to delegate to a staking pool inside of Yoroi.

13. You can remove the old wallet. You can re-add it if you will ever need it. The goal is to not need it anymore and you will use the new (Shelley) wallet from now on.

Yoroi — delegating to a staking pool

Few things to note first:

There is no danger of loosing your funds, as your funds will never leave hardware wallet. You are just telling the network that you are delegating your stake to the selected pool and not sanding that pool any of your ADA.

The cost of delegating to a pool is about ~2 ADA.

There are some parameters to consider:

Cost per epoch: This is a fixed amount of ADA that the pool operator will get and will be substracted from all the rewards the pool creates.

Profit margin: Is a variable reward for the pool, percentage of reward sum that will go to the pool operator.

To play around with this parameters you can check the official rewards calculator [https://testnets.cardano.org/en/cardano/tools/staking-calculator/].

If you want to consider us; our pool is ADA Point Pool, ticker APP [https://adapointpool.com]. APP fee is just 2%. We will try to help Cardano users. Any ADA that we will get and not use for server maintenance purposes will be used for developing Yoroi wallet and some others custom Cardano tools.

Note: Currently you can only delegate to one pool per wallet.
(Warning — Advanced users) Therefore if you want to delegate to multiple pools you have to create more wallets either with new ledger words or attaching secret PIN.

You have two options how to delegate.

Delegate by ID

Next type in or copy/paste the ID of the pool under Delegate stake. You should see the correct staking pool information. Click “Next”.

Example ID (ADA Point Pool):

1cb5d0e006c33ace982a527d4140bc086f99f7d35c27c5ab29600a74

Delegation by ID

Delegation List

Delegation list

Next steps are the same for both flows

Confirm delegation

2. Make sure you have Ledger connected and you are in the Cardano app. Click “Continue”.

Confirm transaction using Ledger

3. Follow the instructions on the screen. All operations are executed together with your hardware wallet.

Follow this instructions on your ledger device.

4. CONGRATULATIONS. You have now delegated your ADA to a staking pool. You will now earn a steady ADA rewards for each EPOCH (5 days) if your staking pool is operational. Click “Dashboard page”

5. Here you have an overview of everything related to your delegation, including total rewards. See “Upcoming Rewards” section on when to expect the first rewards.

Delegation dashboard

Note: You can see the delegation transaction in your wallet. Total delegation transaction Amount was 2.174433 ADA.

Delegation transaction.

Note: Cardano decentralization will be gradually increased as the time passes. Currently community pools create 24% blocks, but split all the rewards.

FAQ

Extended FAQ: The golden Cardano FAQ

Disclaimer

This article comes as it is with no guarantees. Use at your own good judgement.

Who are we?

Providing secure staking rewards for institutions and individuals. Delegate & Forget.

Let us know if you find any mistakes.

Happy staking,

AdaPointPool
https://adapointpool.com
info@adapointpool.com

Ada Point Pool

We run a Cardano staking pool - Ada Point Pool. https://adapointpool.com