1/ Liquid staking derivatives are the latest trend in the decentralized finance (DeFi) space, offering a new way to earn yield on your crypto assets.
A 7min read on everything you need to know to CAPITALIZE ON THE META and X10 YOUR CAPITAL.
A thread ๐งต Rt for others ๐ซก๐
A 7min read on everything you need to know to CAPITALIZE ON THE META and X10 YOUR CAPITAL.
A thread ๐งต Rt for others ๐ซก๐
2/ Key outlines
๐ Consensus Mechanism
๐ Overview of Proof-of-Stake (PoS) and Proof-of-Work (PoW)
๐ Why is it happening now?
๐ What is liquid staking and liquid staking derivatives?
๐ Tokens on my watchlist
๐ Consensus Mechanism
๐ Overview of Proof-of-Stake (PoS) and Proof-of-Work (PoW)
๐ Why is it happening now?
๐ What is liquid staking and liquid staking derivatives?
๐ Tokens on my watchlist
3/ WHAT ARE CONSENSUS MECHANISMS?
Consensus Mechanisms are the protocols, algorithms, computer systems or other systems of agreement that determine the validity of transactions and governance of the blockchain. Basically, they are responsible for how cryptocurrencies work.
Consensus Mechanisms are the protocols, algorithms, computer systems or other systems of agreement that determine the validity of transactions and governance of the blockchain. Basically, they are responsible for how cryptocurrencies work.
4/ POS & POW
Proof of stake is a type of consensus mechanism used to validate cryptocurrency transactions. With this system, owners of the cryptocurrency can stake their coins, which gives them the right to validate new blocks of transactions and add them to the blockchain.
Proof of stake is a type of consensus mechanism used to validate cryptocurrency transactions. With this system, owners of the cryptocurrency can stake their coins, which gives them the right to validate new blocks of transactions and add them to the blockchain.
5/~ People who do the above are called validators and are rewarded with the LP tokens of the what is being validated.
6/ Proof of Work is a form of adding new blocks of transactions to a cryptocurrencyโs blockchain. Computing power is used to verify cryptocurrency transactions (through puzzle-like solving) and adds them to the blockchain.
7/ ~People who compete for solving the tasks are called miners and are rewarded with tokens for securing the blockchain they operate on.
8/ WHY IS IT HAPPENING NOW?
You may wonder what my title has to do with what I started with and now youโre reading this still confused. well,stay with me letโs find out๐ฎโ๐จ
Most times,the solution of a problem is a problem thatโd also need a solution and this is the same case here.
You may wonder what my title has to do with what I started with and now youโre reading this still confused. well,stay with me letโs find out๐ฎโ๐จ
Most times,the solution of a problem is a problem thatโd also need a solution and this is the same case here.
9/ It all started few months back when The Merge occurred, 15 September 2022 to be precise. The Merge turned ETH to a PoS blockchain, meaning validators had to stake their ETH for a given time to secure the blockchain as well as earn profits when unstaking.
10/The Merge brought about the staking feature but unstaking canโt be done till the next stage of the upgrade(Shanghai Upgrade)which is around ending of Q1 or Q2 2023. Prior to that time,validators might want to ape into calls, use their tokens or even give up on crypto and want~
11/ ~to withdraw their funds but their ETH is locked. Due to this, not much people staked ETH which has ~13% of its Circ. Supply staked and itโs a really small value compared to other PoS blockchains with ~60%. This brought about a solution called LIQUID STAKING.
12/ WHAT IS LIQUID STAKING & LIQUID STAKING DERIVATIVE?
LS Protocols operate by pooling a users Ethereum and staking it on their behalf,they in return issue receipt called Liquid Staking Derivatives(LSDs)to represent their stake in Ethereum and take a small %cut on their returns
LS Protocols operate by pooling a users Ethereum and staking it on their behalf,they in return issue receipt called Liquid Staking Derivatives(LSDs)to represent their stake in Ethereum and take a small %cut on their returns
13/ This LSD, which is an ERC-20 token, is then able to be used like any ERC-20 token in various defi applications. An LSD is a liquid token that is similar to most other crypto tokens as it is fully fungible, transferable, fractional,
14/ TOKENS ON MY WATCHLIST THAT YOU CAN CAPITALIZE ON TO MAKE THE MOST ;
MetaMask, one of the most popular EVM compatible wallets has integrated staking directly on the wallet, making it more convenient for users to stake their ETH and earn around 5% yearly rewards in ETH.
MetaMask, one of the most popular EVM compatible wallets has integrated staking directly on the wallet, making it more convenient for users to stake their ETH and earn around 5% yearly rewards in ETH.
15/ Currently they support Lido and Rocket Pool, with hopefully more on the way. This tells us that weโre yet to see the end of this trend anytime soon and reports are saying weโd experience more money inflow after the Shanghai upgrade.
16/ To be positioned, here are some Liquid Staking Tokens Iโm quite bullish on:
17/ ๐ @LidoFinance ( $LDO ) is the leading liquid staking solution -providing a simple and secure way to earn interest on your digital assets. By staking with Lido your assets remain liquid and can be used across a range of DeFi applications, earning extra yield
18/ ๐ @AuraFinance ( $AURA ) is a protocol built on top of the Balancer system to provide maximum incentives to Balancer liquidity providers and BAL stakers (into veBAL) through social aggregation of BAL deposits and Auraโs native token.
19/ Catalyst to watch out for on $AURA
~ LSD narrative
~ Partnerships with projects
~$OHM will vote on moving $65M of liquidity into @AuraFinance.
Massive win for $AURA if it passes and would add 10-15% to $AURA TVL.
~ LSD narrative
~ Partnerships with projects
~$OHM will vote on moving $65M of liquidity into @AuraFinance.
Massive win for $AURA if it passes and would add 10-15% to $AURA TVL.
20/ ๐ @staderlabs ( $SD)
Stader is a non-custodial smart contract-based staking platform that helps you conveniently discover and access staking solutions.We are building key staking middleware infra for multiple PoS networks for retail crypto users, exchanges and custodians
Stader is a non-custodial smart contract-based staking platform that helps you conveniently discover and access staking solutions.We are building key staking middleware infra for multiple PoS networks for retail crypto users, exchanges and custodians
21/ Catalysts to look out for on $SD
~Stader V2
Liquid tokens:
- Access to staking rewards and continue to earn airdrops
- Potential LP pool provision on DEXs
2. DeFi strategies: Integrations with one DeFi protocol and one Launchpad on Terra to amplify APY
~Stader V2
Liquid tokens:
- Access to staking rewards and continue to earn airdrops
- Potential LP pool provision on DEXs
2. DeFi strategies: Integrations with one DeFi protocol and one Launchpad on Terra to amplify APY
3. Gaming integrations: Integrations with at least one gaming protocol powered by rewards
Stader V2 unlocks more possibilities for staked assets
~Blockchain expansion
Expansion of liquid staking to Eth, Solana, and other new and exciting blockchains
~Vaults
Stader V2 unlocks more possibilities for staked assets
~Blockchain expansion
Expansion of liquid staking to Eth, Solana, and other new and exciting blockchains
~Vaults
23/ ๐ @Rocket_Pool is a first of its kind ETH2 Proof of Stake Protocol, designed to be community owned, decentralized, trustless and compatible with staking in Ethereum 2.0. It has had over 5 successful public betas over the life span of ETH2 development
25/ Catalysts on $RPL
Beacon chain withdrawals (March)
- Unbonded min-pools
- Various DeFi integrations
Beacon chain withdrawals (March)
- Unbonded min-pools
- Various DeFi integrations
The chart below shows the price of ETH from when it was staked and currently, we can see that the price is at a loss for stakers and I believe this would mitigate the selling off when available.
Well these arenโt all the Liquid staking projects Iโm looking into; if this gets enough engagement Iโd write a part 2 talking about Liquid staking projects with Lower Market cap that we can bag to make ๐ต from
This would be all for today๐
Like+ Rt +๐๏ธ.Tell me what you learnt ๐
This would be all for today๐
Like+ Rt +๐๏ธ.Tell me what you learnt ๐
Knowledgeable people in the space you should follow and turn on ๐๏ธ for
@_BillionAireSon @SamuelXeus @PrudentSammy @kendrickNoble7 @TheEwansEffect @Ebubechi_GMI @Blueofweb3 @0x366e @kceeonyekachi1 @C_POTENS @Success_temmy_ @SaraIdahosa @Joeconceptss ๐ซก๐
@_BillionAireSon @SamuelXeus @PrudentSammy @kendrickNoble7 @TheEwansEffect @Ebubechi_GMI @Blueofweb3 @0x366e @kceeonyekachi1 @C_POTENS @Success_temmy_ @SaraIdahosa @Joeconceptss ๐ซก๐
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