Breaking News
Black Friday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Acala Launches First Liquid Staking Product for Polkadot & Kusama in Partnership With Blockdaemon

CryptocurrencySep 28, 2021 09:30AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
Acala Launches First Liquid Staking Product for Polkadot & Kusama in Partnership With Blockdaemon

Acala, the decentralized finance network and liquidity hub of Polkadot, today announced its partnership with Blockdaemon, a top-performing blockchain infrastructure provider, to support its newly-launched staking derivatives for Polkadot (DOT) and Kusama (KSM).

The first liquid staking products in the Polkadot and Kusama ecosystem, Acala’s DOT and KSM Liquid Staking represent a new class of financial products primed to compound staking liquidity and create new use cases for DeFi users and developers. The products launched today on Karura, Acala’s Kusama-based blockchain, then will launch on Acala, the soon-to-launch Polkadot-based blockchain platform.

Unlocking Liquidity

Nominated proof-of-stake networks like Polkadot and Kusama incentivize users and validators to stake DOT and KSM for alignment in security and consensus, but one problem has emerged – these staked assets offer no utility beyond earning rewards.

Currently, over $21 billion in liquidity is staked on Polkadot and roughly $2 billion on Kusama. But these assets are locked and dormant, unable to take advantage of other DeFi applications to multiply returns. Users also experience relatively long unbonding periods making them wait 28 days for Polkadot (DOT) and 7 days for Kusama (KSM) before they can redeem their assets. To address these challenges and unlock billions in liquidity for the Polkadot and Kusama ecosystems, the Acala team has built and launched Liquid Staking.

The first Liquid Staking product on Polkadot

Acala’s first Liquid Staking product is KSM Liquid Staking (LKSM), a product launched today on the Karura parachain that lets users stake their KSM while maintaining access to its liquidity.

When KSM is staked on Karura, users receive LKSM, a liquid, yield-earning token that not only represents their staked KSM value, redeemable at any time, but also includes their ever-increasing staking rewards. Currently, anyone who stakes KSM for LKSM earns an indicative 16% APR in staking rewards while also enjoying the benefit of LKSM being an unlocked token that grants access to its underlying KSM liquidity for other uses in DeFi.

For example, LKSM can be used as collateral for a kUSD stablecoin loan, for trading within Karura Swap in an LKSM/kUSD pair, or for becoming a liquidity provider (LP) in the LKSM/KSM pool. With these additional utilities, KSM Liquid Staking empowers users to access liquidity and significantly boost staking yield.

What’s more, LKSM offers low staking minimums (0.1 KSM), and no unbonding period for the underlying KSM, since users can unbond at any time for a small fee. Early unbonding allows users to instantly exit staking positions instead of waiting for the standard 7 days unbonding period, eliminating the opportunity cost of staked KSM and waiting time.

Powered by Blockdaemon

As PoS networks scale, so too does the importance of the underlying infrastructure that coordinates and maintains access to developer tools and nodes. These nodes play a key role in validating transactions and storing on-chain records, and it’s imperative that validator programs for layer-1 platforms like Acala include strong partners equipped to provide institutional-grade security, scalability, and reliability.

With this in mind, Acala is pleased to partner with Blockdaemon as the first Validator in its Liquid Staking Validator Program.

Beginning today, Blockdaemon will run validators for the KSM Liquid Staking pool, and by extension, secure the Kusama network. Blockdaemon will provide the KSM Liquid Staking pool participants low commissions (2%) and a no-slash guarantee meaning users are insured if a node malfunction occurs.

Blockdaemon takes a security first approach with risk mitigation being their top priority for customer protection. To avoid downtime and protect users from loss, Blockdaemon’s engineers manually oversee failover procedures using rigorous processes and monitors every protocol 24/7. Blockdaemon also provides regional and data center diversity spanning across 10+ cloud and bare metal service providers with node redundancy.

With multiple layers of risk mitigation, Blockdaemon will be supporting the secure growth of Acala and Karura and allow users’ funds to stay liquid while earning their Kusama staking rewards.

“As the leading blockchain infrastructure provider, pushing for innovation in the staking and security space is a top priority for Blockdaemon. Acala’s Liquid Staking product is poised to unlock billions in liquidity across Polkadot and Kusama, and we are excited to be the first node operator to join this program to help users compound their DOT and KSM staking yield.” – Konstantin Richter, founder and CEO of Blockdaemon

Join the Liquid Staking Validator Program

Interested in helping validate on Polkadot and Kusama while serving the liquid staking pool participants of Acala and Karura? Apply for Acala’s Liquid Staking Validator Program here.

Start staking KSM for LKSM to earn liquidity mining rewards

Today, the Acala team is kicking off a new liquidity mining program to reward the community with a pool of 350,000 KAR in wards. The liquidity mining program has two ways to earn:

  • Stake KSM for LKSM, and earn by staking your newly minted LKSM
  • Stake KSM for LKSM, then provide liquidity for the new LKSM/KSM pair
  • For more information on how to get started, please review the Liquid Staking guide.

    EMAIL NEWSLETTER

    Join to get the flipside of crypto

    Upgrade your inbox and get our DailyCoin editors’ picks 1x a week delivered straight to your inbox.

    [contact-form-7] You can always unsubscribe with just 1 click.

    Continue reading on DailyCoin

    Acala Launches First Liquid Staking Product for Polkadot & Kusama in Partnership With Blockdaemon
     

    Related Articles

    Add a Comment

    Comment Guidelines

    We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

    •            Enrich the conversation, don’t trash it.

    •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

    •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

    • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
    • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
    • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
    • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
    • Only English comments will be allowed.

    Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

    Write your thoughts here
     
    Are you sure you want to delete this chart?
     
    Post
    Post also to:
     
    Replace the attached chart with a new chart ?
    1000
    Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
    Please wait a minute before you try to comment again.
    Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
     
    Are you sure you want to delete this chart?
     
    Post
     
    Replace the attached chart with a new chart ?
    1000
    Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
    Please wait a minute before you try to comment again.
    Add Chart to Comment
    Confirm Block

    Are you sure you want to block %USER_NAME%?

    By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

    %USER_NAME% was successfully added to your Block List

    Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

    Report this comment

    I feel that this comment is:

    Comment flagged

    Thank You!

    Your report has been sent to our moderators for review
    Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

    Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
    Continue with Google
    or
    Sign up with Email