House Of Chimera

2023-03-22 19:01:54 Liquid Staking - Projects

Many cryptocurrency investors want to earn staking rewards while still having access to their funds. As a result, more projects are emerging to meet this demand. Currently, most projects offering Liquid Staking are on the #Ethereum blockchain, with Lido Finance being the largest provider by total value locked (TVL). Lido, launched in 2020, provides liquid staking services on many blockchains like $ETH, $SOL, $MATIC, $DOT and $KSM

However, other projects are also entering the market, such as Benqi Finance, which offers liquid staking on $AVAX. Open / Comment

2023-03-22 15:00:24 Liquid Staking – Risks

Like any other DeFi protocol, Liquid Staking has its downsides , such as:
Liquid token depeg
Loss of tokenised token = Loss of the funds
Smart contracts bugs

We know from previous posts that the staked funds are tokenised to provide an additional income stream potentially. However, this also means that the token operates one-to-one with the original asset because it carries the same value. This may not always be the case, as tokens can experience depegging . For instance, in the past, $stETH lost its peg to $ETH due to high usage, resulting in supply elasticity.

Moreover, if you lose the tokenised funds while utilising them to earn more, you will inevitably lose access to the deposited funds. Last but not least, smart contracts may be vulnerable to exploitation by hackers , particularly if the contracts contain bugs that bad actors can exploit. Open / Comment

2023-03-21 19:00:00 The Segment Size

Liquid Staking is rapidly gaining popularity , and the total value locked (TVL) in these systems is significantly increasing . As more individuals become interested in earning passive income from their assets, Liquid Staking is emerging as an attractive option.

At present, Liquid Staking is primarily available on the $ETH network. However, given the remarkable growth of Liquid Staking, we can anticipate its adoption by other blockchain networks like $AVAX, as well as the emergence of new protocols. For instance, Coinbase recently partnered with Liquid Collective to support the launch of Liquid Staked ETH. Open / Comment

2023-03-21 15:00:00 Liquid Staking

As we already know, to earn rewards through staking, one must lock their tokens in a wallet. However, what if it were possible to simultaneously earn rewards and utilise the "locked" tokens? This is possible with Liquid Staking. It transforms conventional staking by enabling users to stake a token while retaining a liquid version of that same token. This is possible by the tokenisation of the staked fund, making it possible for them to be:

Transferred
Spent
Traded

Let's say you acquire a liquid staking token, like $stETH. This token can have various use cases, such as serving as collateral for loans or being lent out to others, which could provide an opportunity for users to earn extra income. Open / Comment

2023-03-21 11:01:24 GM!

The UBS's rescue is likely to affect one-third of the 120,000 combined staff including many Credit Suisse investment bankers. Open / Comment

2023-03-20 19:00:46 Staking utility – Reserve Protocol

Staking is more than just holding your cryptocurrencies in a digital wallet to ensure governance and security. For example, Reserve Protocol, whose mission is to increase financial inclusion , uses staked tokens, $RSR, as insurance for a fully asset-backed stable coin (R-token). In the case of R-token collateral default , $RSRs serve as a collateral backstop; thus, stakers get rewarded for the perceived risk by locking up their tokens in an insurance pool.

There exist many other utilities . Don´t hesitate to share the interesting staking projects in the comments! Open / Comment

2023-03-20 15:00:07 Staking

First, imagine you deposit your money in a bank to a saving account. The funds are lent to others, and the bank shares the interest with you. A similar principle is applied in staking, where you lock up your digital assets and receive rewards in return. You are rewarded because your assets stored in a wallet enable:

Blockchain operations
Governance
Security

By staking your cryptocurrency assets, you take an active role in validating transactions on a blockchain network rather than relying on a small group of miners. Whether a network has staking depends on its consensus method, such as Proof-of-Stake (PoS) or Proof-of-Work (PoW). With PoS, your assets are used to vote on transactions and validate blocks, with the network randomly selecting validators for each block. The more tokens you stake, the higher the chance of earning rewards, incentivising validators to maintain the network. Open / Comment

2023-03-20 11:01:31 GM!

This week you can look forward to content highlighting yet another cryptocurrency trend, Liquid Staking. We will discuss and explore:

Staking
Liquid staking
Its benefits and more

Stay tuned! Open / Comment

2023-03-20 02:51:43 CREDIT SUISSE SAID TO PUSH BACK AGAINST UBS’S $1 BILLION OFFER uh-oh. Open / Comment

2023-03-11 04:15:26 What is happening with 'Silicon-valley' based banks? Let's get you up to speed in our latest Twitter https://twitter.com/HouseofChimera/status/1634251877360476177 Open / Comment