Quicksilver and Chain Security
Quicksilver aims to provide a Liquid Staking solution that does not negatively affect chain security. By using Iqlusion’s Liquidity Staking Module, allowing users validator choice, and encouraging positive participation, Quicksilver will address security risks that could potentially have long-term consequences on the security of the Cosmos.
Liquidity Staking Module (LSM)
Quicksilver will be implementing Iqlusion’s liquidity staking module, which will allow delegators to tokenize their staked position and transfer it to a Liquid Staking protocol without unbonding it. Thanks to this, moving staked positions into Quicksilver will not temporarily reduce zone security because users won’t have to unstake their assets in order to do so.
Quicksilver will allow its users to delegate to any validator of a native chain onboarded to the protocol. Because traditional liquid staking protocols were designed for ecosystems with thousands of validators, restricting users to a few validators was a security measure traditional liquid staking providers took to protect their users. However, in Cosmos, where the largest validator set is of 175, restricting usage to 6 or 7 validators could have long term consequences on decentralization that would outweigh any potential short term benefits.
Through participation rewards, Quicksilver will incentivize users to delegate to more decentralized and performant validators that are active in governance. The Quicksilver team hopes to see assets more evenly distributed among validators, decentralizing chains even further. By spreading out the distribution of staked assets, voting power would be less concentrated in the hands of a select few. Distributing staked assets more evenly across validators will increase decentralization, and in turn, security. Furthermore, because Quicksilver enables users to participate in governance, protocol users will be able to override their validators’ votes if they choose to do so.
Because Quicksilver is scalable to any and all IBC-enabled chains, the protocol will be able to provide liquid staking to any Cosmos chain, allowing all token holders to simultaneously stake their tokens, and participate in DeFi. Participating to Defi through Liquid Staking means native chains are still secured through staking, and those who preferred to not stake before, will be incentivized to do so now.
Maintaining and enhancing chain security is paramount for Cosmos to flourish and boom. In order for a thriving DeFi ecosystem to emerge, enabling proper coexistence between staking and DeFi must be achieved. Quicksilver will allow users to liquid stake in a format as similar to native staking as possible, allowing users and zones to reap all of the benefits of staking without any of the sacrifices.
Stay in touch
The Quicksilver testnet will be launching in Q2 of 2022 — Follow our social channels to stay up to date on our latest news, airdrops, and events.
Telegram Español: https://t.me/quicksilverespanol