Liquid Staking G.O.A.T.
How does one become the greatest of all time in liquid staking? By what metrics will users judge the next generation of liquid staking products when deciding their value in decentralized finance? All things considered, who will win the battle for the liquid staking throne?
We’re not here to tell you Geode will win that challenge. That would be presumptuous, as so much is still yet to be seen in the battle for dominance across multiple chains. However, we can tell you what metrics the winner will be judged by, and how we are pushing to be the best in each of these categories with our upcoming launch on Avalanche.
It’s not just about having a product that makes sense in terms of capital efficiency and DeFi composability. Users will be watching to see which projects can generate massive total value locked and naturally pay more attention to them.
Where will the TVL go? It depends on which narrative makes the most sense to users. It’s not just about where a project is now, but where it is going.
For Geode, creating the liquid staking universe is a multichain objective, as we look to improve capital efficiency across all Proof of Stake (PoS) chains. As our staking solution crosses different Galaxies (chains) and our staking solution is adopted by different Planets (DAOs), the number of potential DeFi integrations increases. More DeFi integrations means more opportunities to leverage your liquidity without having to change your staking position. Thus as Geode expands its universe, the value and potential use cases behind tokens like $yyAVAX also increase.
When you create value for your users, TVL comes naturally.
Users will naturally want to choose the liquid staking solution that gives them the greatest return on their investment. Liquid staking solutions will thus be judged by their yield generation.
With the $yyAVAX token on Avalanche, through Eden Network’s role as node operator, staking offers multiple layers of APR earning return for the token. This includes fixed return from staking rewards, variable based on subnet incentives, and variable based on DeFi integrations. The goal is to make the $yyAVAX token the best yield bearing token on Avalanche and demonstrate a use case for Geode’s eventual expansion to other PoS chains.
Beyond TVL and yield generation, a project is judged by its overall contribution to the network itself. In the case of Avalanche, close to 55% of AVAX is staked and earning a return. However, as it is delegated directly to a validator, there is no DeFi composability. There is also only one layer of yield. By utilizing a liquid staking solution with DeFi integrations, users can help validate the network to earn yield while also being able to utilize their liquidity towards other potentially yield bearing activities in DeFi.
In the case of Geode Finance, your staked AVAX is benefiting the network while maximizing your liquidity. As our network grows, so too will the DeFi integrations and interactions that are possible. By providing DAOs with a white label liquid staking solution that works, we bring security to any chain we are on as staking is diversified across more projects and users. This results in more use cases for staked assets and more yield unlocked to users. All benefits apply not just to Avalanche, but any and every chain that Geode launches upon.
How Do I Engage With Geode?
To participate in Geode governance, join our Discord. To stay up to date on the latest Geode developments, follow us on Twitter. For more educational content, follow us on Medium. To use Geode, visit geode.fi!