• 23 July, 2024
News

IoTeX Blockchain’s DAO Approves ETH Liquid Staking Derivatives

IoTeX Blockchain’s DAO approves adding ETH liquid staking derivatives with a 97% community approval. The proposal aims to soar the security of the network via boosting the transactional validators on the platform.

Reportedly, 141 million IOTX were staked in support of the 13th improvement proposal (IIP-13) of the network. This also tends to elevate the IOTX staking ratio to boost the security of the network via an expansion in the number of transaction processing validators.

It is also recommended by the project to add native support for staking buckets’ representation as non-fungible tokens (NFTs) to allow liquid staking protocols (LSPs) to manage stakes via smart contracts.

Doing so would permit developers to swiftly deploy liquid staking decentralized applications (dApps) whilst also boosting the ratio of staking. A rise in the staking ratio of the network would also better the use case of the network among developers, and benefit the IOTX tokens’ value proposition.

Raullen Chai, CEO & co-founder, MachineFi Lab, said, Increasing the IOTX staking ratio and, therefore, the security of its blockchain has always been the goal for IoTeX. The primary motivation behind IIP-13 is improved security and further decentralization of the IoTeX blockchain.

The implementation and deployment of the said feature on a test and the live networks would let builders quickly deploy their (liquid staking) dApps (such as Lido and Rocket Pool) on the IoTex network.

In liquid staking, staked ether is exchanged for its tokenized versions, making the latter usable in DeFi applications. Tokenized versions of the staked ETH have a usage utility as collateral for loans or margin trading for earning a yield. Per CoinGecko, such tokenized ETH tokens have earned massively lately, with LDO (Lido) and RPL (Rocket Pool) each reportedly soaring over 200% in recent months.

IoTeX blockchain currently has staking on the network itself, not requiring to connect smart contracts. At press time, IOTX is trading at $0.02641535, up 1.5%, with a market capitalization of $249,487,673, per CoinGecko.

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