ClayStack — The Future of DeFi as A Concept of Liquid Staking

Bubblesbliss
3 min readJun 5, 2022

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Currently, many crypto users are looking for ways to secure and increase the value of their tokens/assets. Defi Staking is one of the greatest alternative mining methods for letting users stake their tokens in return for rewards that provide the potential to earn passive income in the crypto market with simple tools.

However, one major drawback of staking assets across multiple chains or in the Defi ecosystem is that it often requires lock-up periods, which would affect our tokens’ price shift since we would be unable to trade or transfer staked tokens during that time. Some crypto users may be concerned due to the high risk of holding periods and volatility.

Liquid Staking is the solution to fill this gap and solve the limitations of Defi staking

The concept of Liquid Staking, which allows users to unlock the potential of Proof-of-Stake (PoS) by freeing up the liquidity of their assets, users can freely use their staked assets as derivative tokens to create their own opportunities in the DeFi ecosystem to earn rewards from staking as well as earning yield during the lock-up period.

ClayStack, a decentralized liquid staking platform, leverages this Liquid Staking solution to remove the barriers of Defi Staking by allowing holders of staked assets to withdraw or transfer their tokens at any time with No Lockups period. When users deposit tokens on ClayStack, they will receive back csTokens in return to utilize the csTokens to participate in other DeFi protocols to increase more rewards and income through trading, lending, and farming on their derivative tokens while still earning rewards from staking.

To describe how ClayStack works, see the examples below

Users stake or deposit their $MATIC 100 Tokens on ClayStack, then they get equivalent derivative tokens as $csMATIC 100 tokens. $Matic tokens are staked to validators to earn rewards daily, which are sent to the $csMatic holders. Users can also freely use their $csMatic 100 Tokens in the other Defi applications to increase yields without waiting for unbonding periods.

Why is ClayStack the Defi Future?

ClayStack differentiates itself from other liquid staking protocols by offering features such as immediate withdrawal of staked assets with no lock-up periods (no more waiting for unbonding periods), no minimums or maximum limits required, full transparency (all transactions, reserves and vaults are trackable), and support for multiple chains, including opportunities to earn more rewards from multiple applications.

In conclusion, ClayStack will bridge the gap between Defi and Staking with the concept of Liquid Staking that has the ability to get tradable liquid staking derivatives and instantly withdraw the staked assets. Liquid Staking will be the next generation of Defi by addressing users’ concerns about the huge risk of lockup-staked assets and volatility.

Is ClayStack & Liquid Staking the solution to your Defi staking?

What do you think of Liquid Staking and ClayStack? Is it the Future of DeFi? Let me know what you think in the comments section below.

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