Introduction
General introduction about our liquid staking solution on the Casper blockchain.
The purpose of this documentation is two-fold. Firstly, it aims to acquaint the general user with the project. Secondly, it serves as a comprehensive guide for developers interested in creating software utilizing our Liquidity Staking solution.
The primary goal of this project is to offer a user-friendly method for earning rewards on your CSPR tokens. Through staking with us, your tokens maintain liquidity and can be freely utilized across various applications, allowing you to earn additional rewards in the process
Problem statement
In the traditional Proof-of-Stake (PoS) protocol, staking involves locking one's tokens in a single project for an extended period, with the expectation of receiving a fixed and predetermined staking reward. Although this approach ensures a stable return on the staked tokens similar to a bond, it also restricts the ability to explore higher returns within the DeFi ecosystem. By staking all of your crypto holdings, you lose the opportunity to invest or trade in potentially more profitable crypto pairs on exchanges.
Our solution
Liquid staking offers users the opportunity to enjoy the best of both worlds by utilizing stCSPR in other trading opportunities. This approach brings several fundamental benefits, including:
Simplicity in Staking: Users are relieved from the burden of hardware setup and maintenance, making the staking process hassle-free.
Flexibility in Deposit Size: Liquid staking allows users to earn rewards on any deposit size, no matter how small.
Building Block for Other Applications: stCSPR becomes a foundational element for various applications and protocols on Casper, such as serving as collateral in lending or other trading DeFi solutions.
Maximizing Potential: Liquid staking empowers users to maximize their potential by gaining both staking rewards and returns from new trading opportunities.
Alternative to Traditional Staking: It provides an alternative to exchange staking, solo staking, and other semi-custodial and decentralized protocols, granting users greater flexibility in their staking choices.
By offering these benefits, liquid staking presents a versatile and attractive option for users seeking to optimize their staking experience and investment opportunities on the Casper network.
Protocol APR​
When we refer to Protocol APR, we are talking about the gross Annual Percentage Rate. This rate encompasses the combined rewards earned by our validators from both the Consensus Layer (CL) and the Execution Layer (EL). The rewards are calculated as a ratio of the rewards received by our validators to the total pooled CSPR. The estimation is based on a moving average of the last 7 days, providing a comprehensive overview of the annual rewards earned through the protocol.
Consensus Layer​ (CL)
Validators receive rewards when they perform consensus layer validators’ duties:
attest blocks
propose blocks
The value of the rewards in each epoch is calculated from a base reward. This is the base unit representing the average reward received by a validator under optimal conditions per epoch.
Performance of our validators The better the underlying operator sets are, the more robust, resilient, and performant the underlying protocol.
Learn more about staking rewards on Casper.
Rewards socialization model​
With our liquid staking solution, you see your staking rewards within 24 hours of your deposit being made, without waiting for validator activation.
Protocol fee​
Our liquid staking applies a standard 10% fee on staking rewards that are split between users and the DAO Treasury/node maintainers. The fee can be changed by the DAO pending a successful vote.
More about APR calculation can be found here(link).​
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