Citadel.one Advisors: Sunny Aggarwal
Support with Staking Derivatives Integrations
Hi Citadel.one fans, and welcome to another article! In this article, we will introduce our new advisor, discuss the launch of $XCT token and staking derivatives!
Citadel.One has many great plans for the future, but these plans can only be achieved if everything is done properly and by the best people.
That is why we are proud to introduce our new advisor, a prolific and extremely skilled name in the crypto space. With over 4 years of experience in the crypto space and a lot of achievements to his name, we are very proud to have him on board.
He is Sunny Aggarwal (Twitter), the Co-Founder of SikkaTech, a tech company that is building infrastructure for the Decentralized Future and created Sikka. He is also a builder and lead researcher at Cosmos, a super scalable and optimized blockchain and Osmosis Zone, a DEX and Automated Market Maker built on Cosmos. Equally, he is the host of the EpicenterBTC and Conspiratus podcasts.
Sunny has a vast amount of experience in the crypto space and in the validator space in particular, which is where Citadel.One is focused. He has been able to create one of the world’s most popular validators on the Cosmos network: The Sikka validator. His expertise will definitely help Citadel.One achieve its goal of being a crypto super app.
We asked Sunny how he got to know about Citadel.One, and he had this to say:
“My first interaction with the Citadel team was as a user actually! As the number of assets we needed to track for our Validator operations increased, Citadel.one became one of my favorite staking dashboards, thanks to its awesome UX. Particularly, it’s ability to easily track and use multiple addresses across many chains as a single portfolio, an absolute must-have as we enter the multi-chain world.”
In addition to being our advisor, Sunny will also assist Citadel.One in pioneering staking derivatives. This amazing invention will help free up capital currently used for staking and enable it flow into new DeFi applications, essentially freeing up liquidity.
What are Staking Derivatives?
Staking derivatives essentially allow liquidity that would originally have been locked to be put to use in other DeFi protocols.
A major issue with a majority of DeFi’s features such as lending and borrowing or market making is that the assets are essentially “locked” in a smart contract but not staked. These assets are therefore subject to the platform’s inflation and can readily lose their value overtime.
Staked assets are inflation-adjusted, delivering real (not nominal) returns in tokens. However they are poorly suitable for DeFi purposes.
Equally, when assets are staked, they are essentially “time-locked”. Such time-locks create a liquidity gap when market participants have to choose between two options — either to use an asset for DeFi and be diluted by network inflation or to stake it for passive income.
It makes much more sense for prudent investors to keep assets staked as a part of a long-term portfolio and use them for yield farming. Thus the next DeFi’s evolutionary step should be staking derivatives yield farming. Staking derivatives can be symbiotic with DeFi and may amplify gains, creating a whole new financial tool class.
Examples of cases where Staking Derivatives come in useful
- ETH staking derivatives: With the launch of Beacon Chain 13 on December 1st, the Ethereum 2.0 era has begun. However, only the Deposit contract is available at the time of writing, which means that those ready to stake ETH for additional rewards have to freeze their funds effectively until the 2nd phase of the ETH transition. The lock period is estimated to be around 18 months, which implies high risk. The only possible solution is the ETH staking derivatives.
Currently, there are several teams with different approaches that have announced their products. Rocket Pool, Lido, and Stafi are among the most recognized solutions. We are closely monitoring their progress and plan to integrate them in due time.
The crux however, is that staking derivatives would, in this case, allow users to gain the benefits of the Ethereum staking pool whilst having their assets free to be put into other platforms.
- Privacy-focused staking derivatives. $dxSCRT is a unique staking derivative token with privacy features available on the Secret Network. dxSCRT represents funds, staked by the secret contract, earning staking rewards over time. Moreover, dxSCRT can be exchanged at any time back for SCRT. Cross-chain features and Secret Network will allow Citadel.one to apply privacy features to all tokens integrated to Citadel.one Platform.
With the increasing demand for staking derivatives products as more people begin to see their usefulness, we expect staking derivatives to become a mainstream trend in 2021. We are also proud to say that Citadel.One is well poised and ready to take full advantage of this opportunity and benefit immensely from this trend.
In line with Citadel.One’s plans to become a crypto super app, we will begin development of products that will take advantage of this feature in earnest. As soon as suitable products are released and tested, we will work on their integration as on-platform extensions to allow users to implement complex strategies and maximize their returns.
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About Citadel.one
Citadel.one is a non-custodial Proof-of-Stake platform for the management and storage of crypto assets. Users can create public addresses for all supported networks with one seed phrase, connect their Ledger or Trezor device, or import an address generated by another wallet.
The analytical dashboard provides relevant information on wallets’ balances and networks’ main metrics. In Citadel.one, we standardize the semantics, making interactions with the platform as easy as possible. The same goes for network metrics. By using universal terms, we are making it easier for users to understand and compare networks.
One of the main functions of the Citadel.one platform is participation in the PoS consensus — users can stake and delegate their assets, claim rewards, and follow the latest network proposals in the voting tab.
Citadel.one offers its users instant cryptocurrency exchange services that allow fast and secure crypto assets swap. It is also possible to buy and sell crypto with a credit or debit card. Citadel.one users can track rewards, withdrawals, transfers, and deposits across all supported networks and add comments to these transactions.
Among PoS platforms, Citadel.one supports BAND network($BAND) Secret Network ($SCRT), Cosmos ($ATOM), ICON ($ICX), IOST, Orbs, and Tezos ($XTZ). We also support Ethereum, Bitcoin, and Tether ($USDT) for our users’ convenience. Mobile and desktop versions, new networks, including Polkadot and Ontology, are scheduled for the upcoming updates. Furthermore, delving into the idea of true decentralization, we envision Citadel.one a decentralized autonomous organization and a genuinely community-owned platform in the nearest future.
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