Enhanced liquid staking is coming to Graph Ecosystem brought to you by Tenderize
What is liquid staking?
Crypto liquid staking is a relatively new concept that combines the benefits of staking and liquidity in the cryptocurrency market. Staking refers to the act of holding and locking up a certain amount of cryptocurrency in a blockchain network to support its operations and earn rewards in return. This process typically involves a period of time during which the staked tokens are inaccessible or illiquid. In the case of GRT, the thaw period is 28 epochs (roughly 28 days). Utilizing Tenderize, you can avoid some of the down-time where you do not earn GRT rewards during the undelegation thaw. It is also useful if you’d like the ability to switch indexers immediately.
Liquid staking aims to provide liquidity to staked assets by allowing users to receive tradable tokens, commonly known as “liquid tokens” or in the case of Tenderize “tGRT” in exchange for their staked native GRT. These liquid tokens represent the underlying staked assets while also being tradable and accessible on various decentralized exchanges (DEXs) or platforms. This method is similar to the larger ETH LSD providers like LIDO (stETH) or Rocketpool (rETH). The benefit of Tenderize’s updated version is you will be able to choose your indexer, rather than just put your GRT into a pool and get the average rewards of the indexing pool, shared with all staking participants.
Additionally, the tGRT tokens obtained through liquid staking on Tenderize can be used as collateral for borrowing or lending purposes. This feature enables users to access liquidity without the need to unstake their GRT tokens. By utilizing tGRT as collateral, stakers can leverage their staked assets while still earning staking rewards. You can earn interest on top of your interest with your tGRT within Defi. Tenderize plans to have a borrow feature in which you can take a loan against your stake with stable coins at a fixed rate. More details on this are pending, so keep eye out for twitter updates.
It’s important to note that it is advisable that you explore the platform’s documentation and guidelines to fully understand how liquid staking with tGRT works, and its potential benefits, while understanding the risks.
What is Tenderize?
Founded in December 2021 by Nico Vergauwen, Tenderize is a liquid staking protocol where users can stake cryptocurrencies to receive staking rewards without locking their deposit or actively managing their investment. Check out their docs — here
Tenderize focuses on offering liquid staking solutions for Web3 “work protocols”. Work protocols are decentralized networks that require node operators to compete to perform computational work (e.g. storage, rendering, ..) through their stake. In return for doing so, they earn network fees and rewards.
With Tenderize, users can earn compounding staking rewards, swap tenderTokens for the underlying asset, and earn liquidity farming rewards. When users stake their crypto assets on Tenderize, they get tenderToken, a 1:1 ERC-20 derivative of the underlying deposit. These tenderTokens can be freely traded on decentralized exchanges or used in DeFi apps. Users get more tenderTokens as their deposit starts accruing staking rewards. Tenderize currently accepts MATIC, GRT, LPT, and AUDIO deposits and crossed 1M+ in total value locked — see Defi Llama
TenderTokens unleash the composability between DeFi and staked assets, allowing you to earn yield on top of yield. TenderTokens provide a new financial primitive that unlocks a wide array of new use cases for your staked web3 tokens.
Members:
Alec Shaw- CEO
Nico Vergauwen — Founder
Salim Hadri— COO
Nigel Gauthier — Head of Content
It was just announced Tenderize has a new CEO role:
Is liquid staking initiative good for GRT and The Graph ecosystem?
The Graph ecosystem is currently set-up so when a Delegator wants to undelegate their tokens, they are subject to a 28-day unbonding (thaw) period.
See more details on Graph Academy here:
There are many potential delegators that may not want to have this period of time where their tokens are not being put to work and are inaccessible. This is where Tenderize can help. You have the option to use the standard thaw period and undelegate, or you can swap your tGRT tokens immediately back to GRT to avoid the 28 day thaw.
The liquid staking also opens up more possibilities for use of your tGRT tokens, such as in DeFi, as more and more platforms adapt and use the newly emerging LSD tokens. By offering liquid staking options, this can attract new users who might not have been willing to lock up their tokens for a fixed period. This increased participation can lead to more engagement, liquidity, and potentially a positive feedback loop where the project becomes more attractive to investors and users alike.
In the current state of Tenderize you do not have the option to choose your indexer. However, with the new revised upcoming launch on Arbitrum, you will be able to choose. The protocol will be open and permissionless, so any indexers can join and participate in the ecosystem.
Are you interested to participate as validator?
Tenderize Labs is offering $2M worth of grants to validators participating in the launch of Tenderize v2 launch. Grants are paid in WAGYU, the protocol’s token. If Tenderize v2 grows in adoption, protocol revenue increases and validator grant recipients share in the upside.
If you’re already interested and want to apply click this link.
How to participate as a delegator/staker?
Simply delegate your GRT now on ETH or you can wait until the launch on Arbitrum, anticipated in the near future. When you open the Tenderize app, you’ll immediately be on the staking section.
Currently, there are four tokens you can stake:
- Livepeer (LPT) on Arbitrum
- Polygon (MATIC) on Ethereum
- The Graph (GRT) on Ethereum —
soon to be on Arbitrum - Audius (AUDIO) on Ethereum
Each staking option has a different APY, meaning the total return you can expect with the compounding effect after a year.
Please see video explanation of how to delegate your GRT with Tenderize. It should be noted the UI is expected to have a new look and update 8/1/2023.
At the moment, Tenderize is designed for staking the tokens of the following projects: Livepeer, The Graph, Polygon, Audius. But keep up on socials for updates to the protocol.
Website: https://www.tenderize.me/
Twitter: https://twitter.com/tenderize_me
Discord: https://discord.gg/DG7scRNf
Telegram: https://t.me/tenderizeofficial