Staking Economy: Implication of PoS Assets in Decentralised Finance
Probably, one of the most exciting parts for our community with regards to transition to Smartlands Network is associated with the validators and staking. Staking is quite a new concept in general and there is still no clear consensus on the most effective structure in terms of liquidity for token holders, network resilience, etc. Ability to earn network rewards (including and mainly inflation) through participation in consensus creates a strong stimulus to stake tokens, though it comes at cost of network restrictions (unbonding period) that forces holders to jeopardize liquidity that is crucial for basically any blockchain asset. Such situation leads to the appearance of many different solutions to get liquidity despite technical restrictions of blockchain networks ranging from just holding your tokens on an exchange (that runs a node and distributes network rewards), to sophisticated investment strategies with the use of token derivates. Seemingly useless inflation becomes a driver to the appearance of the whole new segment of DeFi.
Chorus One, an operator of validating nodes and staking services on Proof-of-Stake networks, has recently released a dedicated report — the Liquid Staking Research Report — that perfectly addresses the issue. We encourage everybody from our community to find some time and look through the report. And here is why.
