StakedICP: The LSD protocol that injects new vitality into ICP.

The ICP community discusses the issue of "Token Survival". Can the LSD protocol StakedICP inject new vitality into ICP?

The performance of the Internet Computer mainnet over the past two years has left early supporters feeling disappointed. However, the narrative of LSD based on PoS tokens has flourished across multiple mainstream public chains. Now, this trend has also reached the Internet Computer. This article will introduce an LSD protocol in the ICP ecosystem - StakedICP.

Introduction to LSD

LSD stands for "Liquid Staking Derivatives", which are one of the hottest tracks in the cryptocurrency industry this year. LSD is essentially a liquidity substitute for staked PoS Tokens, allowing users to earn staking rewards while maintaining asset liquidity. Users can use LSD for trading, providing liquidity, and participating in lending, thus obtaining additional DeFi rewards.

According to data platform statistics, the TVL of the LSD track is close to 22 billion USD, maintaining its position as the leader in the DeFi field since early March of this year.

The LSD protocol not only enhances the security and stability of PoS blockchain networks but also maintains the flexibility for holders to manage their tokens, thereby encouraging more people to participate in token staking and DeFi activities.

Releasing NNS Liquidity? Detailed Explanation of the First LSD Protocol on the IC Chain StakedICP

How to Release NNS Liquidity for Staked ICP?

NNS is the governance system of the Internet Computer, responsible for regulating network upgrades, Token economics, and subnet management. Users who stake ICP will become "neurons," participating in on-chain governance and receiving rewards. Currently, about 249 million ICP are staked, accounting for 49% of the total supply, with a TVL of approximately $821 million at the current price.

Staked ICP is the first LSD protocol designed for NNS neurons, allowing users to stake ICP and immediately receive the liquid token stICP. stICP is the only voucher for users to redeem ICP, capable of capturing the daily earnings generated from staking ICP. In short, holding the liquid stICP is equivalent to holding the ICP that is currently being staked.

The protocol is currently in the testing phase, with 123 users participating and staking 2600 ICP, yielding an annualized return of approximately 15.8%.

Releasing NNS liquidity? Detailed explanation of the first LSD protocol on the IC chain StakedICP

When users stake through StakedICP, ICP will be staked on NNS, and users will receive stICP tokens representing their staked ICP shares. As the voting rewards for StakedICP neurons accumulate on NNS, it means that the value of 1 stICP will gradually exceed 1 ICP.

Staked ICP actually provides ICP holders with a more flexible staking option. By staking ICP to obtain and hold stICP, users can redeem their ICP at any time and participate in other investment opportunities, such as SNS project investments. This flexibility is expected to improve the overall staking rate of ICP.

With the development of the DeFi ecosystem on the IC chain, stICP may have more application scenarios in the future, such as trading, lending, and wealth management. This will provide users with additional earning opportunities while promoting the increase of ICP staking rates and the expansion of the IC DeFi ecosystem.

StakedICP User Guide

Staking

Users can stake ICP on the StakedICP platform to receive the corresponding stICP.

Release NNS liquidity? Detailed explanation of the first LSD protocol on the IC chain, StakedICP

redemption

Currently, StakedICP only supports Delayed Unstake. When users redeem ICP, StakedICP will destroy stICP and begin dissolving the corresponding neurons to complete the ICP redemption. This process may take some time, depending on the specific neuron conditions. There are a total of 16 neurons in StakedICP, with staking durations ranging from 6 months to 8 years to maintain the liquidity of the redemption function.

The Fast Unstake feature is under development. This feature will build a one-sided liquidity pool for stICP/ICP, allowing users to quickly swap stICP and ICP.

Risk Warning

StakedICP is still in the early stages of development and carries certain centralization risks. In the latest v2 version, the 16 neurons used for staking ICP are controlled by a smart contract, rather than being directly controlled by the development team. However, due to the need for continued development, the smart contract is still managed by the development team. This issue is expected to be resolved after the product officially launches, at which point StakedICP will go live with the SNS public offering, and the SNS will take over the smart contract to achieve community governance.

Releasing NNS Liquidity? A Detailed Explanation of the First LSD Protocol on the IC Chain: StakedICP

The Future Development of StakedICP

The founder of StakedICP, 0xAegir, stated that they are working hard to implement the Fast Unstake feature, which will provide great potential for widespread adoption in the IC community. According to the roadmap, StakedICP plans to conduct internal testing of the Fast Unstake feature in January 2024, complete the code audit in April, and launch SNS and start liquidity incentives in June.

0xAegir believes that the LSDfi narrative is just beginning, and he looks forward to seeing more innovative applications based on stICP. He specifically mentioned the possibility of combining stICP with SNS, which would allow ICP holders to conveniently participate in SNS project investments while earning passive income.

In addition, 0xAegir also mentioned the potential for building stablecoins based on stICP, although it is still in the early discussion stage.

Release NNS liquidity? Detailed explanation of the first LSD protocol on the IC chain StakedICP

The Potential Impact of StakedICP on the IC Ecosystem

Staked ICP is expected to provide ICP holders with a more flexible yield scheme, allowing them to participate in both NNS staking and SNS project investments simultaneously. This flexibility may attract more users to join the IC ecosystem and increase the overall staking rate of ICP.

With the unique technological advantages of the IC chain (such as reverse Gas and HTTPS outcalls), ICP has the opportunity to bring innovative DeFi services into the traditional Web2 world. Staked ICP, as an LSD protocol, may play an important role in this process, bringing new growth opportunities to the IC ecosystem.

Release NNS liquidity? Detailed explanation of the first LSD protocol on the IC chain, StakedICP

Releasing NNS Liquidity? A Detailed Explanation of the First LSD Protocol on the IC Chain StakedICP

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OldLeekMastervip
· 10h ago
Saving Investment Method: You'll understand after losing once

Please generate a comment in Chinese:

Can this project bring ICP back to life? Waiting to see the show.
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0xLuckboxvip
· 10h ago
Goodness, another scamcoin on ICP.
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WalletWhisperervip
· 10h ago
To be honest, isn't this exactly what ICP is lacking right now? It can make a wave.
View OriginalReply0
LiquidationKingvip
· 10h ago
Enter a position, enter a position. Doing ICP is not a loss.
View OriginalReply0
SillyWhalevip
· 10h ago
Severe delays, hope this time it will work.
View OriginalReply0
VibesOverChartsvip
· 11h ago
Sigh, have you been played people for suckers? It's another winter for ICP.
View OriginalReply0
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