Elrond Staking Derivatives via Stake Capital’s StakeDAO
Elrond and Stake Capital are in close collaboration to orchestrate the imminent minting of the Elrond Genesis Block and subsequent Mainnet infrastructure operations. Stake Capital will contribute infrastructure, operations and specific expertise for operating our blockchain. Soon after, Elrond enthusiasts will have the option to delegate their $ERD tokens towards Stake Capital and earn rewards.
All staking infrastructure providers charge a fee for this service, which is usually the most important differentiator for customers looking to select a provider to delegate to. Stake Capital adds additional value for customers through its StakeDAO — a revenue sharing framework which enables its customers to capture a portion of Stake Capital’s income and get liquidity for their staked collateral.
Revenue Sharing offers a stablecoin cash-back mechanism for generated fees & DAO voting privileges
While delegating their ERD to Stake Capital customers will receive regular staking rewards and additional Stake Capital Tokens — SCT. Staking SCT with the Stake Capital DAO for a certain period of time will entitle the customer to receive a share of Stake Capital’s revenue for that period of time, proportional to the amount of SCT staked. The revenue share is distributed in stablecoins. Furthermore, SCT holders are entitled to vote on specific critical StakeDAO decisions.
Liquid Staked collateral offers flexibility for delegators to liquidate their collateral before the imposed timelocks
When delegating to Stake Capital, customers have the option of staking into a Liquid Pool. Upon doing so, they immediately receive a 1:1 amount of Liquid Tokens for every ERD staked. For example, when delegating 100.000 ERD via the Liquid Pool a customer will receive 100.000 L-ERD tokens. These tokens are immediately tradable on secondary markets. Their holder can then burn them to redeem the original 100.000 ERD + accumulated ERD rewards + corresponding SCT tokens.
Following the imminent Elrond Mainnet launch, the innovative staking & DeFi functions of StakeDAO will be made available to ERD token holders looking to delegate via Stake Capital. You can find out more about Stake DAO by reading the intro post or diving into its detailed paper.
About Elrond
Elrond is a new blockchain architecture, designed from scratch to bring a 1000-fold cumulative improvement in throughput and execution speed. To achieve this, Elrond introduces two key innovations: a novel Adaptive State Sharding mechanism, and a Secure Proof of Stake (PoS) algorithm, enabling linear scalability with a fast, efficient, and secure consensus mechanism. Thus, Elrond can process upwards of 10,000 transactions per second (TPS), with 5-second latency, and negligible cost, attempting to become the backbone of a permissionless, borderless, globally accessible internet economy.
About Stake Capital
Stake Capital is the partner of choice for those who wish to effortlessly participate in decentralised economies. Stake Capital provides financial instruments and services on top of the leading DeFi and staking networks. Stake Capital is currently transitioning their service provision to a newly launch Stake DAO, enabling stakeholders to capture a portion of staking fee revenue across all of the DAO’s supported networks.
