Acala Partners With Blockdaemon To Launch Staking Derivatives For DOT, KSM

Acala, a DeFi platform that is built on the Polkadot ecosystem, announced its partnership with Blockdaemon. This partnership with a leading blockchain infrastructure platform is to support its first liquid staking derivatives for DOT and KSM.

Significantly, Acala’s DOT and KSM Liquid Staking, the first staking derivatives in Polkadot and Kusama ecosystems. It brings a new class of financial products and creates new cases for DeFi users and developers. The product which was released today is Acala’s Kusama-based blockchain, whereas the Polkadot-based blockchain is soon to be launched.

Additionally, over $21 billion in liquidity is staked on the Polkadot ecosystem currently. Whereas, Kusama has about $2 billion but these assets are locked which is unable to benefit from other DeFi applications. On the other hand, users have to wait for a long-period to redeem their assets. Polkadot (DOT) users have to wait 28 days and Kusama (KSM) users have to wait for 7 days. The significant reason for the Acala team to launch staking is to address these challenges and unlock billions of dollars in liquidity for DOT and KSM networks.

Acala partner Blockdaemon recently became a unicorn raising over $155 million in Series B funding round, with a $1.255 billion valuation, establishing it as the world’s largest blockchain infrastructure company. This funding round was led by SoftBank Vision Fund 2* while the participants were Matrix Capital Management, Sapphire Ventures, and Morgan Creek Digital.

More so, the latest round funding will aid Blockdaemon’s international expansion, which allows the firm to hire high-class talents. Furthermore, the new funding will enable the firm to make strategic acquisitions to supplement its already robust technology stack.

First Liquid Staking Product

A product which is launched today on Karura parachain is the first Liquid Staking product of Acala. It is KSM Liquid Staking (LKSM), which allows users to stake their KSM while maintaining access to its liquidity.

Moreover, users will receive LKSM when they stake KSM on Karura but then it also includes staking rewards. Currently, those who stake KSM for LKSM will earn approximately 16% APR in staking rewards. On the other hand, they can also enjoy the benefit from LKSM being an unlocked token that offers access to KSM liquidity for other DeFi uses.

In addition, LKSM offers low staking minimums, where early unbonding allows users to exit staking positions instantly. Users don’t require to wait for 7 days unbonding time, since users can unbound any time for a small fee.

Acala Partners Blockdaemon As First Validator

Blockdaemon is the top blockchain infrastructure platform for node management and staking. Exchanges, custodians, crypto platforms, financial institutions, and developers use Blockdaemon to bridge stakeholders to blockchains. It enables users to transact, earn and stake via nodes with security, scalability, and reliability.

Acala announced the first validator in its Liquid Staking Validator Program, Blockdaemon which will run validators for the KSM Liquid Staking pool. From today, Blockdaemon offers the KSM Liquidity Staking pool participants low commissions and no-slash guarantee.

However, the Acala team is kicking off a new liquidity mining program to reward the community. Users can earn rewards in two ways, where they can stake KSM for LKSM and earn by staking newly minted LKSM or offer liquidity for new LKSM/KSM pair. Moreover, the participants who want to join the Liquid Staking validator program can apply and validate on Polkadot and Kusama.

The post has appeared first on thenewscrypto.com

Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M

Editors News