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Automated Delegation of Staking Rewards

This tutorial demonstrates how to create an intent-based flow that automatically delegates staking rewards when they exceed a specified threshold, helping you compound your staking returns.

Prerequisites​

  • Basic understanding of Cosmos SDK staking operations
  • A wallet with staked tokens that generate rewards
  • The validator address you want to delegate to

Scenario​

  1. Withdraw staking rewards using MsgWithdrawDelegatorReward
  2. Check if the withdrawn amount is greater than 150,000 uatom
  3. If the condition is met, automatically delegate the rewards to a validator using MsgDelegate

1. Define Withdrawal Message​

Create a message to withdraw staking rewards:

const msgWithdrawReward =
  cosmos.distribution.v1beta1.MessageComposer.withTypeUrl.withdrawDelegatorReward(
    {
      delegatorAddress: "cosmos1delegatoraddress",
      validatorAddress: "cosmos1validatoraddress",
    }
  );

2. Define Feedback Loop for Delegation​

Set up a feedback loop to use the withdrawn amount for delegation:

const feedbackLoopDelegation: FeedbackLoop = {
  flowId: BigInt(0), // Reward withdrawal flow
  responseIndex: 0, // First response index
  responseKey: "amount.[0].amount", // Extract the withdrawn amount
  valueType: "math.Int", // Type of value
  msgsIndex: 1, // Index in message array to modify
  msgKey: "amount.amount", // Key in MsgDelegate to replace
  icqConfig: undefined,
};

3. Define Comparison for Delegation Threshold​

Set a threshold of 150,000 uatom for automatic delegation:

const comparisonDelegation: Comparison = {
  flowId: BigInt(0), // Reward withdrawal flow
  responseIndex: 0, // First response index
  responseKey: "amount.[0]",
  valueType: "sdk.Coin",
  operator: 4, // LARGER_THAN
  operand: "150000uatom", // Threshold
  icqConfig: undefined,
};

4. Define MsgDelegate for Automated Staking​

Create the delegation message that will use the withdrawn rewards:

const msgDelegate = cosmos.staking.v1beta1.MessageComposer.withTypeUrl.delegate(
  {
    delegatorAddress: "cosmos1delegatoraddress",
    validatorAddress: "cosmos1validatoraddress",
    amount: { denom: "uatom", amount: "0" }, // Will be replaced by feedback loop
  }
);

5. Set Up Execution Conditions​

Configure the conditions for execution:

const executionConfig: ExecutionConditions = {
  stopOnSuccessOf: [],
  stopOnFailureOf: [],
  skipOnFailureOf: [],
  skipOnSuccessOf: [],
  feedbackLoops: [feedbackLoopDelegation],
  comparisons: [comparisonDelegation],
  useAndForComparisons: false,
};

6. Submit the Intent-Based Flow​

Create and submit the flow with both withdrawal and delegation messages:

const msgSubmitFlowDelegation =
  intento.intent.v1.MessageComposer.withTypeUrl.submitFlow({
    label: "Reward Claim and Delegate Flow",
    owner: "into1wdplq6qjh2xruc7qqagma9ya665q6qhcpse4k6",
    msgs: [msgWithdrawReward, msgDelegate],
    duration: "1440h",
    interval: "600s",
    feeFunds: [{ denom: "uinto", amount: "5000000" }],
    configuration: executionConfig,
  });

7. Sign and Broadcast the Transaction​

Finally, sign and broadcast the transaction:

client.signAndBroadcast(owner, [msgSubmitFlowDelegation], {
  amount: [],
  gas: "300000",
});

Next Steps​