Why StakeEasy Is An Innovation to Defi World
StakeEasy is a Defi Dapp on SecretNetwork that offers a privacy-preserving liquid staking solution. It is a platform that combines Delegate staking and Defi for users to enjoy higher returns on their assets. StakeEasy razes stake risk to ground level with its tight parameters for choosing validators and has therefore erased the fear of slashing from users’ minds. Using StakeEasy allows one to earn returns as a delegator and collect interest from defi protocols by leveraging staking derivatives. StakeEasy operates on SecretNetwok to provide top-notch privacy and security for users.
Before I proceed with StakeEasy, let us dive into what staking itself is.
If staking is the act of locking an asset to receive returns on it, then it will suffice to define it in two ways.
· Delegate Staking: this is locking coins to mine blocks on a network. The more you lock, the more you earn, and this is done through network agents called validators.
· Defi: this works through a pool of assets called “liquidity.” This liquidity powers financial instruments such as lending, borrowing, insurance, etc. Those who provide the liquidity for Defi platforms earn interest paid by those leveraging the liquidity.
Effect:
With the crypto industry transitioning to PoS(Proof of Stake), Delegate staking becomes a mechanism native to the blockchain itself and essential for network security and transparency. Therefore, an asset not delegated stands the test of price instability without increasing itself in quantity. Also, a crypto asset staked for PoS will not be available for usage in other Defi tools.
Solution:
This is where StakeEasy sets in with Liquid Staking Solution for the privacy-preserving blockchain(SecretNetwork). StakeEasy provides its users with the ability to use both Delegate Staking and Defi at a time by issuing a liquid staking token that holds the equivalent value of the staked token and can be used to invest in other protocols that provide Defi functions.
Juxtaposition:
It is not surprising that StakeEasy is not the first to offer staking derivatives yet, preferred, and has preferences due to varieties of user-profiting features embedded in the protocol. These include;
· Auto-Compounding:- A feature I refer to as yield recycling. With this, users’ stake earnings recycle into their staking value to maximize their output and save them from gas fees and the stress of manual re-delegation.
· Validator Diversification:- This brings top-notch decentralization to StakeEasy and reduces the fear of falling into the hands of malicious validators; as the staking values of each user are not concentrated in the hand of one validator but a set of validators chosen with 7 parameters.
These are:
1. Uptime
2. Commission
3. Number of slashing events in last month
4. Community votes
5. Total amount staked
6. Self-delegation amount
7. Participation in network governance
All these are brilliant measures outlined by StakeEasy to protect its users from malicious delegators and slashing effects.
After all these, validators are still subjected to restructuring and changes after 21days to filter out validators that might put the protocol at risk. The set of validators is checked to remove disconnected validators, validators that have changed commission, and validators that have been down for an extended period from the system.
· Liquid Staking: it replaces staked $SCRT tokens with $SeSCRT which carries the value of staked amount plus the returns and can be used for other purposes as staked $SCRT for lending or borrowing in other protocols, trading futures options, etc.
· Defi Integration & Lending Protocol pools: Defi lending and borrowing will also arise with fair distribution rather than randomization or a lucky-winner scheme. This will be achieved by partnering with oracle network for reliable price feeds and with lending protocols for lending pools
· Leverage-Staking: StakeEasy plans to give users double utility for their staked coins. For example:- A user stakes $SCRT and gets $seSCRT, he can borrow another $token with the $seSCRT and convert that $token to $SCRT again. That’s not all, he can stake the second $SCRT in StakeEasy for higher staking returns.
· Futures Options: StakeEasy plans to add FO derivatives on $SeSCRT and other associated tokens in the future for those who want to have their assets staked and as well do leverage trading with the influence of their staked assets.
I want to believe that this framework brings an understanding of what the main StakeEasy paper entails. StakeEasy is in its early days and I am sure building continues on it till all the features and functions are realized and start fetching for both the team and early adopters.
If you are reading this, boom! You’re early! $SEASY is the native coin of StakeEasy and it is already farming by tons of other early users around the globe. This farming goes live for 9weeks allowing users to farm $SEASY by staking $SCRT with turns to $SeSCRT on the StakeEasy dapp.
Resources — -> https://stakeeasy.finance/
Resources — -> https://scrt.network/blog/secret-staking-derivatives/
