A new functionality is being introduced to the Etherlink ecosystem, which is built on top of Tezos’ rollup technology, that aims to expand the use cases.
New Capabilities
Shared to CryptoPotato via a news release, the creators behind Stacy.fi, a staking platform built on the Tezos blockchain, have introduced stXTZ, a liquid staked version of the native blockchain token XTZ, to the EVM-compatible Layer 2 (L2) blockchain Etherlink.
It enables users to maintain complete liquidity of their funds while continuing to generate staking rewards by engaging with DeFi applications on the Tezos Smart Rollup-powered Etherlink.
The liquid staking market worldwide has experienced significant growth, surpassing $45 billion, driven by similar financial instruments like stETH from Lido Finance, which have become the backbone assets of DeFi ecosystems. These liquid tokens are addressing capital inefficiencies in traditional staking, as users can maintain asset liquidity while receiving staking rewards, which has likely led to their widespread adoption and growth.
The Stacy staking platform is powered by Acurast, a computational network, and developed by contributors from Ubinetic AG, which specializes in developing synthetic assets, on behalf of the Youves decentralized autonomous organization (DAO).
After the successful approval of governance, the DAO, comprising YOU token stakers who are native to the organization, now also manages the pool for stXTZ, the token itself, and the manager contracts. Holders of the staked token retain 90% staking rewards, and 10% goes to a reward-collecting contract overseen by the DAO.
DeFi Expansion
A contributor from the Youves organization shared his thoughts:
“stXTZ from Stacy.fi allows DeFi users in the Tezos ecosystem to make use of their Tezos funds in DeFi offers on Tezos L1 and its rapidly emerging Layer 2 Etherlink, while contributing to the security of the L1 and earning 90% of the potential staking rewards.
With stXTZ, the ecosystem is ready for the next era of DeFi, not only on the L1, but also on the current and future L2s.”
The combination utilizes the bridging infrastructure from Etherlink, where stXTZ tokens are locked on the Tezos Layer 1, and ERC-20 compliant proxy tokens are created on Etherlink’s underlying Layer 2. A price oracle compatible with Chainlink delivers real-time price updates for DeFi platforms.
The post Tezos to Feature Liquid Staking With stXTZ Launch on Etherlink appeared first on CryptoPotato.
