ClayStack — the Future of Liquid Staking
It is important to highlight that some blockchains have abandoned resource-intensive mining (Proof-of-Work or PoW) and switched to the Proof-of-Stake (PoS) model. The fundamental difference between them is that with PoS the rewards come for holding coins, and with PoW, new tokens are mined by computing computer power. PoS is one of the methods that protects the blockchain from interference and inaccuracy of the data.
Staking, or stacking, is a kind of alternative to traditional mining. Users receive rewards, but they are not required to buy expensive equipment.
In order to receive rewards for staking, assets are fully or partially blocked in a liquidity pool. Users can join such a pool directly on the project, through centralized or decentralized exchanges, as well as through automated market makers. These assets can then be used to validate various blockchain processes. They can also support the liquidity of a particular project in order to balance supply and demand in the market.
Liquid staking is a new development of DeFi. It helps to release tokens that are locked into particular contracts. It also helps investors to receive greater returns. During this process, liquid staking cancels all blocking periods that are associated with traditional cryptocurrency staking. Users have to place their tokens in PoS chains to protect the network. When PoS networks originally appeared, native tokens were used minimally. The best option for users was to entrust their assets to a validator in exchange for rewards.
With the development of DeFi, new methods have been developed to improve the overall efficiency of the proprietary asset economy, further reducing the percentage of assets invested. ClayStack seeks to meet this need by allowing users to deposit funds in staking without blockchain periods involving a temporary loss of liquidity.
ClayStack allows cryptocurrency holders to stake their assets with the ability to withdraw them at any time. The interesting thing is that when tokens are withdrawn from the staking pools, the liquidity does not disappear, because synthetic tokens replace them. Users that deposit cryptocurrency in the platform’s smart contract will receive a liquid derivative token that is fungible, transferable, tradable and receives daily incentives.
Wondering how ClayStack works? It’s very simple. For example, a user deposits 1,000 MATIC tokens. In return, he will receive 1,000 csMATIC coins, and ClayStack will leverage the original assets in staking. The project will periodically send csMATIC to the user as a reward for staking. The latter can be exchanged back into MATIC at any time, without a lock-in period, and can also be used in DeFi-applications to generate additional income.
Compared to other liquid staking protocols developers that are tied to single token, ClayStack offers full cross-chain support using multiple tokens. In the first phase, the platform will support MATIC tokens, ETH2 and The Graph Project (GRT) assets. In the future, ClayStack is going to integrate other coins, including Near (NEAR) and Solana (SOL), becoming an interoperability protocol.
ClayStack has a plethora of exclusive features including multi-blockchains support, full transparency and on-chain execution, no lock-up periods, no minimums and no compromise with the network’s liquidity, especially during market volatility peaks when investors invest their tokens in other applications.
To sum up, the integration of DeFi and staking will be a game changing event in the cryptocurrency world, and ClayStack team will lead this process.