The official launch of Ethereum 2.0 has made the term staking appear in the eyes of more people. Staking is not a new concept. When the Pos and Dpos consensus mechanism projects appeared, it already came into being, and it was once flourishing. The Dpos project Eos interprets its small peak, and the current crypto market also has a clear trend of transitioning from Pow to a Pos consensus mechanism.

According to Nansen data and Beaconcha.in data, Ethereum 2.0 has 91,755 validators and 79,719 active validators as of February 6, and the annualized rate of return on pledge is 8.10%.

交易所Staking冲入赛道,POS机制下的新“金矿”

Ethereum 2.0 validator data

The next wave of staking may be due to Ethereum 2.0, but it is really difficult for ordinary users to participate in the staking pledge on Ethereum, the extraction of ETH rewards, the system penalty mechanism, potential code bugs, and liquidity have directly prevented a large number of users from entering Staking. Pledge.

Just two months after the launch of Ethereum 2.0, the staking service provider Staked stated that on February 2, a total of 75 Ethereum 2.0 validators under its umbrella were restarted due to an error, which caused them to sign the previously signed blocks again. . This mistake resulted in the user being fined 18 ether.

Staked admits that this error stems from its pursuit of a higher pledge return rate while ignoring its potential risks. By increasing the number of beacon chain nodes on the Prysm client of Ethereum, the company hopes to improve the verification efficiency to obtain better pledge rewards. However, Staked overly trusted the stability of the dual signature mechanism, which led to this error.

Exchange staking rushes into the track

For users who are unable to withstand profit damage and small funds, staking ETH2.0 may not be the best choice. Staking without threshold has gradually become the hottest market for staking. As the “water seller” of the industry, the exchange is regarded by many users as the top project of the digital currency pyramid, and a large number of digital asset investors have also gathered, and exchange staking pledges have gradually become popular in the market.

The current exchange staking market is divided into the following types

1) One type is Soft Staking led by Binance and KuCoin. They can obtain income by holding coins. They can avoid the 21-day lock-up time and obtain better liquidity, but the annualized rate of return will be reduced.

2) One category is Huobi, OKEX, etc. They are more regular staking services. The longer the lock-up time, the higher the profit.

3) The last category is a comprehensive category of the first two types. Relatively speaking, BitMax Staking pledge is more typical. There is no fixed lock-up time, and it is not just holding the currency to obtain income. Instead, users need to actively pledge, and users can enjoy Quickly release the pledge after the pledge period, and have more interesting interactions.

交易所Staking冲入赛道,POS机制下的新“金矿”

BitMax has always been committed to expanding the layout of financial services and products, and meeting the needs of different types of users. Staking is a native fixed-income financial product, so BitMax has productized staking to provide convenience for users to participate in this process, and to provide ecological level empowerment and support for good projects.

At the beginning of the design of staking, BitMax considered the financial and derivative trend of staking, and was committed to combining transactions, liquidity and staking income, so that users can perform other interactions while obtaining staking income.

Break through the pain points of staking liquidity and maximize fund utilization

For most PoS projects, participating in staking means sacrificing liquidity. When a user participates in a pledge, there will generally be a pledge lock-up period of tens of days or months, which will sacrifice the maximum benefit brought by the pledged assets, which greatly limits the user’s enthusiasm and breadth of participation.

交易所Staking冲入赛道,POS机制下的新“金矿”

In order to break through the liquidity pain points of staking, BitMax has launched a quick release pledge function, where users can instantly unlock pledged assets for transactions and transfers. BitMax’s token liquidity pool meets the needs of users to instantly retrieve pledged assets when they release pledges, and users can flexibly manage their pledged asset positions.

BitMax’s staking design also considers compatibility with decentralized solutions. After users participate in staking pledge on BitMax, they will generate “-S” assets. This mapped asset is an internal accounting unit and cannot support withdrawals. In the future, BitMax’s staking will be integrated with liquid staking assets or protocols. The generated “-S” asset is essentially an on-chain asset that can support withdrawals. Users can withdraw to participate in DeFi, and users who hold this type of liquid staking assets outside can also directly deposit coins to the BitMax platform For trading or as a margin, this truly launches the integration of DeFi and CeFi, Cex and Dex.

Create a “Staking derivative” model to hedge price risks

The emergence of staking derivatives is to solve various problems of native staking. BitMax’s staking is different from other trading platforms and is the only product in the industry that is closest to staking derivatives.

After BitMax pledges, the system will generate an “-S” asset to represent the pledged asset, and the “-S” can be transferred to a margin account as a margin to participate in transactions. This function actually provides users with a risk hedging method other than “quick release of pledges”. Taking FIS as an example, users can use FIS-S as a margin and can borrow USDT/BTC/ETH to do more in any currency , You can also double short FIS to hedge price risk.

BitMax combines Staking’s lock-up mining and liquidity. The pledged assets can be used to obtain the income of staking pledge while using it as leveraged margin to participate in leveraged transactions to obtain long or short income. In this way, the effect of locked-in token trading can be realized, and the leveraged principal can be enlarged. BitMax’s staking model realizes the optimization and upgrade of staking derivatives to native staking, and creates a transaction model that is more in line with the future development of staking.

Income is automatically compounded to maximize Staking income

Automatic compound interest can maximize the user’s income, the user’s income can be reinvested accurately and quickly, and the pledged principal can be expanded to obtain greater income.

The compound interest model is an innovative feature launched by BitMax that can automatically reinvest staking proceeds into the pledge. Users can choose to turn on or off the corresponding function when they initiate a pledge. In the compound interest mode, users do not need to manually repeat the staking operation every day, and each staking income issued will be automatically reinvested into the pledge, increasing the principal, and the income is superimposed to maximize the staking income.

BitMax has optimized the distribution time of staking proceeds, allowing users to benefit in advance. And BitMax will distribute the proceeds to users in advance through advance payment. The automatic compound interest model greatly improves the enthusiasm of users to participate in staking, and it is believed that it will lay a deeper user base for BitMax’s staking development.

to sum up:

The liquidity release track market is vast, and it is a market with real demand. At present, this track is still in its infancy. BitMax will continue to update and upgrade Staking products. In the future, the integration of DeFi and Staking and staking derivatives are the directions. BitMax will make greater breakthroughs in these two directions, combining user needs to solve more Staking asset pain points.