StakeStone, the Omnichain Liquidity Distribution Network’s Potential in Restaking

STONE, LRT for Omnichain Liquidity Standard

StakeStone - Omnichain Liquidity Distribution Network and Market for Application Layer

STONE - LRT for Omnichain Liquidity Standard

From day one, StakeStone has recognized a major trend in the industry — ETH PoS staking and the expectation for restaking has been driving up ETH’s risk-free rate and its opportunity costs.

At the same time, the increasing number of emerging chains and ecosystems is generating a growing demand for ETH liquidity. Yet, the high opportunity cost of ETH makes it increasingly challenging for Layer 2s to develop ecosystems relying on ETH liquidity.

Therefore, ETH with staking and restaking rewards will play a crucial role in the liquidity of various chain application layers.

In the era of multi-chains, the emergence of a unified standard for omnichain liquidity assets is the natural trend in order to reduce friction and liquidity fragmentation. This is exactly what STONE, Liquid Restaking Token for Omnichain Liquidity Standard, aims to achieve.

StakeStone is building an omnichain liquidity distribution network and market for application layer. It focuses on establishing STONE as the standard for omnichain liquidity assets and advancing its use cases on various chains. This helps L2s to attract liquidity and provides users with multiple layers of earning opportunities.

By wrapping ETH staking and potential bluechip restaking rewards into STONE and distributing them to the application layer of various ecosystems, STONE acts as a unified standard. This enhances the efficiency of users, chains, and the overall ecosystem, similar to how a unified currency can benefit every stakeholder.

StakeStone has partnered with Manta Network, attracting over 700 million STONE liquidity within a month and gaining extensive ecosystem integration, ushering in a new paradigm of liquidity. Concurrently, StakeStone has also collaborated closely with emerging Bitcoin L2s, including B² Network, Merlin Chain, and BounceBit, establishing STONE as the ETH asset standard in the rising Bitcoin ecosystem.

Because StakeStone has always been committed to building STONE as the standard for liquidity, we are optimistic about the potential of restaking in enhancing risk-free rewards on ETH. We also ensure that StakeStone’s architecture is compatible with various restaking strategies. Gradually supporting restaking as underlying assets aligns with StakeStone’s long-term vision of building the omnichain liquidity distribution network.

Restaking Possibilities with StakeStone

Over the past period, the team has been actively engaging in discussions with several dozen outstanding builders within the restaking industry, including restaking infrastructure, staking pools, restaking pools, validators, and more. These interactions have focused on conducting research, exploring ideas, and developing relevant solutions. We see potential and common challenges ahead as the restaking ecosystem evolves and matures, requiring protocols and solutions to make adjustments accordingly.

Currently, for StakeStone, the approach is to gradually integrate restaking on the underlying assets by making on-chain proposals and adding new strategies. In the future, there will be a gradual allocation of a portion of ETH to help the protocol and users gain restaking rewards.

As mentioned, StakeStone’s mission and focus will always be on building the omnichain liquidity distribution network and driving STONE to become the standard on multiple chains. Therefore, support for different restaking strategies serves the ultimate goal decribed.

In this regard, StakeStone is introducing three types of solutions related to restaking. These solutions are being shared with the community and the industry to gather more feedback and collectively explore the integration of restaking in a long-term and stable manner.

• Liquid Staking Token restaking solution: Using LST for restaking
• Beacon chain restaking solution: Applying beacon chain restaking
• Restaking pool integration solution: Integrating LRTs

Potential influencing factors for all solutions in terms of adoption:

• Long-term impact of each strategy adopted for StakeStone’s architecture
• The cap or suspension of deposits for each restaking strategy
• The withdrawal functionality or liquidity condition of the assets involved
• The landscape of the AVS ecosystem and the different protocols’ AVS management ability and performance
• The potential upgrade of contracts and code (delegation, slashing, code) for restaking infrastructure and protocols built on top with the launch of AVS
• The stability and risk preferences of each strategy after the introduction of more AVS
• The future funding capacity and distribution of each strategy within the restaking ecosystem

Community, users, and partners have increasingly high expectations for restaking. Meanwhile, STONE maintains its position as the standard for omnichain liquidity. From this perspective, STONE’s mission is to bring the risk-free returns that staking and blue-chip restaking can offer to various applications within the ecosystem. It aims to connect liquidity providers and users, enhancing the efficiency of all participants.

Currently, restaking is still in a phase of rapid development, and the future landscape, as well as the final structure off product in its ecosystem, are still worth looking forward to and co-building. StakeStone, by maintaining compatibility with various restaking strategies, can help users seize opportunities based on actual circumstances.

In the future, as the AVS ecosystem continues to evolve, there might be a wide variety of restaking assets and derivative strategies, each with different risk levels and characteristics. For StakeStone, the focus will be on ensuring the overall security and stability of STONE assets while seeking to improve capital efficiency. Therefore, StakeStone may not integrate all types of restaking assets, but will focus on the more stable and secure parts, as well as outstanding suppliers who excel in this area. From the perspective of the asset, StakeStone will focus on STONE, rather than multiple derivatives issued based on different AVS portfolios.

It is worth noting that a significant difference between ETH PoS staking and restaking is that ETH PoS staking is highly homogeneous, similar to treasury bonds in the traditional finance. On the other hand, the underlying assets of restaking can be highly heterogeneous, which may result in a wide variety of derivatives issued based on restaking assets in the future, similar to corporate bonds in traditional finance. For StakeStone, its architecture is compatible with multiple underlying assets, allowing for a potential balance between returns and stability through a combination of numerous restaking assets.

The differences in vision and actual business operations place StakeStone and STONE in a unique position, providing more flexibility and balance. We aim to collaborate with the industry to explore long-term, stable, and organic synergies and solutions.

For the currently deployed ETH, active discussions are underway with partners to explore the next steps and solutions, helping users who wish to participate in restaking have opportunities to do so. Discussions and developments regarding deploying ETH into restaking are currently underway. More information will be gradually announced in the future, so please stay tuned.

Additionally, community users and builders are warmly welcomed to engage in discussions about various possibilities.

StakeStone Twitter: https://twitter.com/Stake_Stone

StakeStone Website: stakestone.io