Liquid Staking on Casper

Earlier in the month, Paradiso, alongside our friends and partners at Friendly Market, launched our initial version of an MPC-powered simple liquid staking derivative on Casper.

Liquid staking is a form of tokenization in which an asset that would normally be locked in stake (in this case, Casper staked as a validator) is made available in a fungible manner, with the rewards earned on the asset slowly changing the value of the representative asset while retaining the ability to be tradeable and unlocked. (more information on Liquid Staking)

Technology

Paradiso utilizes the same MPC implementation used in our bridge on Casper (a modified fork of ZenGo’s Gotham City MPC Library)

Our MPC node effectively acts as a EOA (Externally Owned Account) on Casper and stakes to Arcadia’s validator directly without needing a smart contract. You’re effectively getting the benefits of staking with a validator, without having to have your funds be locked

Token Economics

stCSPR is designed to model the Wrapped stETH architecture, where the amount of CSPR that stCSPR represents changes as staked rewards are earned.

An example of how the Wrapped Staked Casper Architecture works is as follows.

You wrap 10,000 CSPR into stCSPR

You continue to earn staking rewards with your stCSPR as if you had staked it with a Casper Validator directly.

When you unwrap your stCSPR, you receive 10,000 CSPR plus whatever your staking reward was (for example, at 8% staking returns, you would receive 66 CSPR over a month)

Risks

Many risks come with any DeFi application, and doubly so with applications built on new technology. We’ve outlined some of the known risks on our docs. Please be cautious and cognizant of capital risk when interacting with our applications as there is an inherent and substantive capital risk when interacting with smart contracts and emerging technology

Learn More

If you want to learn more about Paradiso’s stakedCSPR implementation, check our dashboard, docs, and deployed contracts!