<aside> 💡 When using Liquid Staking, staked cryptocurrency that would otherwise be locked up, is tokenized into a transferrable, liquid asset. The new asset is direct ownership over the stake + any rewards earned. These tokens can be sold, lent or unlocked to claim the underlying stake after a waiting period. Tokenizing stake unlocks new use cases and better capital efficiency, which are crucial for the adoption of Web3 and the censorship resistance of the networks these assets secure.
Tenderize v2 is a new class of liquid staking protocol that delivers liquid staking to crypto networks without sacrificing decentralization of the underlying validator set.
Tenderize Labs believes the Web3 movement is about internet users taking back their well-deserved digital sovereignty. For this to happen, a credibly neutral layer of the internet is required. This layer is currently being built on top crypto networks that feature a decentralized validator set.
A decentralized validator set ensures that when a user interacts with a crypto network, the data presented is accurate. Users can prove the accuracy without the need of a centralized institution. The current state of liquid staking protocols threaten the decentralization of Ethereum’s validator set.
<aside> 💡 Tenderize v2 - Liquid Staking 2.0 - lets validators and their delegators enjoy liquid staking without compromising the credible neutrality of the underlying blockchain.
As of June 11, 2023, Ethereum dropped from a high of $4,400 in December 2021 to the current price of $1,750, down 60% . During this drawdown, the units of ETH deposited staked through liquid staking token (LST) protocols increased from 1.7M to 8M, up 470%. The long term holders aren’t simply deciding to hold ETH, rather they are opting for a staked version of ETH which pays yield in ETH.
The product of choice for large ETH holders is liquid staked ETH - for native yield and ability to lend through decentralized financial (DeFi) protocols. The current state of liquid staking products are flawed, prioritizing liquidity of the one LST above the decentralization of the crypto network on which it operates.
<aside> 💡 Lido controls 32% of all staked ETH, resulting in 32% of all voting power.