Understanding Liquid Staking with Artemis Finance and artMETIS
Liquid staking is a revolutionary mechanism within decentralized finance (DeFi) that allows users to stake their METIS tokens to earn rewards while retaining liquidity of the staked assets.
Unlike traditional staking, where the staked funds are locked and inaccessible for a defined period, liquid staking provides a tokenized version of the staked assets (artMETIS). This means users can still buy, sell, trade, or use those assets, making them more flexible and convenient.
Liquid staking offers the triple benefits of earning staking rewards while continuing to utilize the staked METIS in other DeFi opportunities.
Benefits of Liquid Staking:
- Staking Rewards: Liquid staking enables you to earn auto-compounded rewards from staking your METIS tokens anytime.
- Enhanced Liquidity: You can access staking rewards anytime by converting your tokens into liquid tokens, avoiding lock-up periods. You can freely trade or use artMETIS tokens in DeFi protocols and unlock additional rewards on top of staking rewards.
- Flexibility: Liquid staking is a great option to enjoy flexibility and earn staking rewards without locking up your tokens.
How Much Rewards Can I Get Through Liquid Staking?
With liquid staking, you can access your staked METIS tokens without locking them up (via artMETIS). Liquid staking offers 20% rewards. Artemis will charge 10% on top of this reward as protocol fee, which makes the sequencer reward become 18% for artMETIS users. However, we are at the early stage, and wish to attract more users to join Artemis, so these protocol fee is waived for now. Additionally, you can leverage your yield by using other DeFi strategies, depending on your investment decisions.
Where Do the Rewards for artMETIS Come From?
Sequencer mining involves METIS tokens earned by sequencer nodes for their role in processing transactions and generating blocks on Metis. These nodes, operated by various entities globally, ensure fairness in block sequencing by ordering and batching transactions and submitting these batches to the Ethereum mainnet.
Artemis Finance generates yields from the aforementioned operations and directs these yields to the artMETIS staking pool. In this way, the value of artMETIS continuously increases relative to METIS. Thus, the returns come directly from the blockchain itself.
How Can You Claim Your Rewards?
As mentioned earlier, liquid staking is not traditional staking. When you stake METIS, you won’t see a reward section or a Claim button on the interface.
Instead, the artMETIS you mint will serve as your receipt. This way, if you want to redeem artMETIS for METIS after a certain period, you will receive more METIS than you originally staked. This is because while you held artMETIS in your wallet or used it in other DeFi options, Artemis Finance worked tirelessly to increase the value of artMETIS.
How Does Redeeming Work?
Since staked METIS tokens operate on Metis L2 Sequencers, the unstaking process may take a certain amount of time. This means that when you want to redeem artMETIS for METIS, there will be a 21-day waiting (unbonding) period. This duration is not a requirement set by Artemis Finance but is determined by the operational principles of the blockchain.
Please note that, the redeem feature is not opening yet. It will be available when METIS offices open the partial withdraw feature. Stay tuned for further announcements.
In this article, we have tried to explain some key points about Artemis Finance, artMETIS, and liquid staking. If you have any further questions, please reach out to us via our Telegram group.
Artemis
Artemis Finance is a liquid staking protocol designed exclusively for Metis Decentralised Sequencer Pools. It is also a member protocol of NGAD.
