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Horus Staking - Liquid Staking
Challenges in Traditional Staking
Historically, engagement in Proof-of-Stake (PoS) protocol-based projects has involved the practice of locking one's assets within a single project for an extended duration in anticipation of receiving a fixed and predetermined staking reward. While this approach assures a predictable return on staked assets, much like the reliability of a bond, it simultaneously restricts opportunities for yielding higher returns by engaging with the DeFi ecosystem. When one's entire crypto holdings are staked, it becomes infeasible to explore more lucrative cryptocurrency pairings for trading or investment on various exchanges.
Liquid staking offers an innovative approach that permits the utilization of staked tokens in diverse trading opportunities, allowing users to enjoy the best of both worlds – earning rewards on their staked tokens while benefiting from the returns derived from new trading prospects. Liquid staking introduces numerous foundational advantages by:
- Simplifying the staking process, eliminating concerns about hardware setup and maintenance.
- Enabling users to obtain rewards even with minimal deposits, eliminating the need for substantial holdings (e.g., Ethereum's requirement of a minimum 32 ETH for staking).
- Empowering the staked tokens to serve as a fundamental building block for other applications and protocols, such as collateral in lending or other trading DeFi solutions. Liquid staking provides the opportunity to maximize potential while enjoying the best of both worlds.
- Offering an alternative to, or potentially encompassing, exchange staking, solo staking, and other semi-custodial and decentralized protocols.
Comparison with Alternative Staking Options
Solo staking, while valuable, comes with certain drawbacks. Establishing a validator node demands a high level of technical proficiency, necessitates a minimum deposit of 32 ETH in the case of Ethereum, and can result in severe penalties for slashing or offline incidents if staking is not managed properly. Additionally, staked funds remain inaccessible for a substantial period.
Solo staking bears similarities to another option known as SaaS staking, wherein users maintain control over their validator keys. However, SaaS staking entails placing trust in a third-party, often centralized, which may exhibit malicious behavior, vulnerability to attacks, or regulatory oversight. Returning to the Ethereum example, the minimum staking threshold of 32 ETH persists.
Alternatively, centralised exchanges may offer staking services. However, it is worth noting that cryptocurrency tokens and centralized finance (CeFi) are not inherently compatible from a foundational perspective. Furthermore, economically, staking with centralized entities does not yield a corresponding token, consequently forfeiting the opportunity for subsequent DeFi engagement or participation within the same centralized entity where the tokens were staked. While the annual percentage rate (APR) for staking on centralized exchanges may be higher, the concentration of assets within these entities can potentially wield a significant influence on a fundamentally decentralized ecosystem.
By adopting a liquid staking solution like Horus Staking, users can mitigate these inconveniences and access non-custodial staking backed by an actively managed set of validators. Liquid staking is unlocking the full potential of PoS, granting users the capability not only to stake their tokens but also to maintain liquidity for deployment in DeFi projects. This approach not only enhances rewards for individuals but also contributes to the broader participation in staking.
Horus Staking Horus Staking provides access to four different digital assets: Ethereum, Polygon, Binance Coin, and Avalanche. Users can benefit from APY rates ranging from 3% to 15%, all while enjoying the advantage of liquid staking with no impermanent loss. Also users have the added convenience of accessing their assets at any time, fully immersing themselves in the benefits of pure DeFi.
Referral System Users can share their Horus Staking referral link and receive referral rewards every time new people join through their link. This will help ensure the steady growth of our platform and increase the Total Value Locked (TVL).