LIQUID STAKING

LIQUID STAKING ON THE PROTOCOL EXPLAINED

Staking has become a popular feature amongst many cryptocurrency holders today. When a token is staked, it is dedicated to supporting the strength and security of its network.

When a cryptocurrency token holder stakes tokens, he or she receives a staking reward for their support. In addition to providing cryptocurrency holders with passive income, staking often provides governance rights. However, it also presents the challenge of capital inefficiency

Liquid staking stands as a solution to the capital inefficiency problem.

WHAT IS LIQUID STAKING?

Liquid staking is an alternative to traditional staking that offers flexibility and greater efficiency. Specifically, it allows stakers to access their assets while still enjoying the benefits of staking their tokens.

Staking tokens has traditionally had a high opportunity cost for token holders. By staking their tokens, they agree to lock up their assets for a specific period of time. By doing so, they may miss out on opportunities to profit by trading their tokens or using them in other ways. This opportunity cost may deter some token holders from participating in regular staking. Through liquid staking, however, networks enjoy the stability and security associated with staked tokens. At the same time, token holders have the ability to use their assets as desired while still receiving staking rewards

When users stake their Cryptocurrency on our protocol they receive a liquid staking derivative ST(token)

What Are Liquid Staking Derivatives?

Liquid staking derivatives are a representation of a token holder’s staked assets. Liquid staking derivatives tokens confirm the staker’s participation in the staking pool, and this token can be used for lending, trading and collateral throughout the decentralized finance (DeFi) world.

Derivatives are used extensively throughout the financial sector. They are contracts between two entities. The price of a derivative is determined by the underlying asset’s value fluctuations. In addition to liquid staking derivatives, other types include swaps, futures, forward contracts and options. With cryptocurrencies, the two parties contractually speculate on the future value of a cryptocurrency at a specific date. Variations in pricing represent the opportunity for profits. Liquid staking derivatives use tokenization so that participants can benefit from derivatives while also enjoying the benefits of staking their tokens.

FOR EXAMPLE

A user stakes core on our protocol he or he receives STCORE a derivative that’s loosely pegged 1:1 to core, said user can freely trade his/her STCORE

He/she can also choose to earn more by adding their STCORE to the liquidity pool on Hobo swap to earn trading fees.

Those who added liquidity to the STCORE/CORE liquidity pool can stake their LP tokens to earn an additional APY.

NORMAL STAKING

The protocol enables its users to stake various cryptocurrencies and LP tokens to earn High yield

WHAT MAKES IT DIFFERENT?

Staking on our protocol is different because it comes with two extra features and benefits

1. Multiple Yield : This enables Stakers to be able to choose which crypto or stablecoin they want their yield, so basically for example when a user stakes HOBO on our protocol they can choose from a list of crypto they want their yield to be ( Stake Hobo/Earn ETH, Stake Hobo/Earn USDT, Stake Hobo/Earn LFG, etc)

2. Fixed Yield : As most of you know the APY of a regular staking pool fluctuates for example today it can be 100% APY tomorrow it’s 30%. This feature enables stakers to earn a fixed rate, but it also requires them to Lock their stake for at least 14 days.

This feature is very useful when staking stablecoins like USDT or DAI