3AC founders break their silence 👀

Staking vs Liquid Staking✍️

DeFi Fridays

Jul 24, 2022

Welcome to the #19th edition of DeFi Fridays!

101 today:

Major happenings in the ecosystem —
3AC founders talk; Curve may launch a new stablecoin; and what the future of Ethereum may look like.
A topic we explain —
Difference between Staking & Liquid Staking.

Tweet of the week:

pastry @PastryEth

Today, 3AC founders Su Zhu and Kyle Davies broke their silence in an interview with Bloomberg. The two gave insights on their current situation, and reflected upon past decisions made by the firm. Here’s what it included..

A topic we explain:

Difference between Staking & Liquid Staking:

Staking is a process of validating transactions on a proof-of-stake network model via a consensus mechanism & earning rewards while doing so.

In a Proof-of-Work model, miners compete with each other to validate a block. This process requires high computational energy. The miner who wins gets awarded. Example: Bitcoin Network.

In a Proof-of-Stake model, people who validate a block are called ‘Validators.’ Instead of computing with other validators, they are required to lock up their tokens on the network or put them up for stake. These tokens ‘put up for stake’ generate interest & this process is called staking.

Staking can be done in multiple ways if one chooses not to validate. And, this is where the concept of liquid staking comes in.

Liquid Staking:

Liquid staking is a process of earning staking awards without locking up crypto tokens on a blockchain network. Users can deposit (without locking) their tokens on a platform that offers to stake on their behalf. Once deposited, the platforms instantly transfer it into their own validator pools. The interest earned is given back to the user. Example: Lido, Stader Labs, and Rocket Pool are a few Liquid Staking DeFi protocols.

Earn up to 10% APY on multiple Blue-Chip DeFi Protocols with Brew.

Join the waitlist now: brew.money

Major News in the Ecosystem:

🔰Bancor TVL Down 30% Since Suspending Impermanent Loss Protection. (Source)

🔰Curve may launch a new stablecoin.

SCB 10X @SCB10X_OFFICIAL

KK: Curve is launching a stablecoin? ME: Over-collat. That's all I can say for now. KK: veToken success? ME: veToken aligns long-term incentive of governance and users. This was inspired by some disasters observed from historical mistakes of American corporates.

🔰After charging a former Coinbase employee for wire fraud, the SEC listed 9 tokens as securities.

db @tier10k

[DB] SEC Names 9 Coins as Securities in Coinbase Insider Trading Complaint AMP, RLY, DDX, XYO, RGT, LCX, POWR, DFX, KROM

🔰Polygon launches zkEVM:

foobar @0xfoobar

1/ Explaining the zkEVM - what it is - how zk-rollups compare with other rollup types - the competitive landscape for zk-rollup creators And who really was first 😉

💎 Wait for Brew Findouts💎

In this edition - we’ve found a not-so-hidden gem for our readers. 💎

Let’s be honest, markets make a lot of noise. And the web3 market is no less. Scrolling away on #cryptotwitter will make sure you know that. And so, we have brought you a source that separates insights from the noise.

Investrly is a newsletter publication on substack that empowers its readers to invest early in Web3 and learn & earn through their newsletter & podcast.

Find their recent edition here.

More Good Reads:

✍️Intersection of DeFi & NFTs:

Sal @sal_coin

Curious about the intersection of NFTs & DeFi? @kinaumov and I just dropped a new report yesterday focused solely on this topic for @ChristiesInc Art & Tech Summit. Here are the key insights 🧵 1/16

✍️ What the future of Ethereum may look like:

Sal @sal_coin

✍️ Potential use-cases of crypto:

SBF @SBF_FTX

1) To what end? Some potential use-cases for crypto.

Did you like this edition? Help us improve! 💪

That’s it for today, folks. See ya next Friday. 🧢

Disclaimer: Nothing included in DeFi Fridays should be taken as financial advice. DeFi Fridays & investrly have mutually decided to mention each other in their newsletters.