Introducing SuperStaking: $14M Liquidity Staking Initiative

Posted: 24/06/2024

SuperStaking is a $14 million liquidity initiative designed to significantly boost the liquidity of liquid restaked tokens on the Radix Network.

By participating in this campaign, users who deposit and lock their Liquid Stake Units (LSUs) can effectively double their staking rewards for a 6-month lock period.

The first wave of SuperStaking is live now on CaviarNine. More details on adding liquidity to LSU pools on Caviar can be found here. Users who want to participate using Ociswap and sXRD will need to wait for the second incentive wave; further details on the Ociswap sXRD can be found here.

Increasing TVL on the Radix network is a continuous objective for Breakout2024. During Project Ignition, the Radix ecosystem experienced a significant influx of xwBTC, xETH, and xUSDC/T, establishing a robust liquidity foundation for DEXs, pushing Radix up the TVL rankings, heightening awareness among builders and DeFi users. SuperStaking is here to do the same, focusing on LSUs.

SuperStaking is made possible by Radix’s native liquid staking, which allows users to receive Liquid Stake Units (LSUs) at the protocol level when they stake XRD to a validator instead of relying on application-level third-party providers like Lido or RocketPool. There are currently over $130m of LSUs in the Radix Ecosystem.

The program works by matching up to $5m of LSULP from Caviar and up to $5m of sXRD from Ociswap with $2m of XRD in each of the LSULP:XRD and sXRD:XRD pools. This is kept balanced through Caviar and Ociswap’s innovative concentrated liquidity pools.

Similar to Project Ignition, the value of staked LSU-LPs will be matched with XRD tokens – only this time, concentrated liquidity will be used. The rewards double the staking return that a staker would receive from just staking during the 6-month lock. By participating, you both benefit from and contribute to the growth and visibility of the Radix network.

Native Liquid Staking on Radix
Liquid staking and restaking have taken DeFi by storm, with more than 20 out of the top 100 dApps on DeFi Llama.

The reason is simple – why participate in DeFi with a network token like ETH, when you can participate in DeFi with a staked version of ETH and earn additional yield?

Platforms like Pendle have advanced this concept by creating innovative methods to maximize the return on staking rewards. Pendle enables users to tokenize and trade the future yields of staking rewards, allowing the expected future yield from a staked asset to be converted into a tradable token, offering users greater flexibility and potential profit opportunities. This tokenization involves creating two distinct assets: Principal Tokens (PTs), which represent the staked assets themselves, and Yield Tokens (YTs), which encapsulate the future yields generated by these assets.

Radix’s Native Liquid Staking – On Radix, users receive LSUs representing their staked XRD, which are freely transferable and swappable within Radix’s DeFi ecosystem. This protocol-level integration eliminates the complexities and reliance on third-party liquid staking providers seen in other networks, giving more control and security to users.

Radix’s Liquid Restaking – CaviarNine’s LSULP and Ociswap’s forthcoming sXRD have emerged as liquid restaking tokens, amalgamating many LSUs into a single token that is more convenient to use in Radix DeFi.

This is the Radix equivalent to how Renzo Protocol ($3.8Bn TVL) and Kelp DAO ($1.1Bn TVL) amalgamate various Ethereum liquid stake tokens to create a single restaked token.

With Super Staking significantly boosting liquidity in liquid restaked tokens, exciting new use cases and increased incentives to use Radix DeFi become possible. The bolstered liquidity for restaked tokens will incentivize increased use of these tokens in Radix DeFi, while still allowing their users to earn yield from staking.

Now is the time to take your LSUs and put them to work in the emerging Radix DeFi ecosystem!

How can you participate in the first wave of SuperStaking?
Go to CaviarNine
Add your LSUs to the LSULP – Guide
Go to the SuperStaking tool on CaviarNine
Lock your LSULP in the SuperStaking component and get your LSUs matched with XRD. Once the lockup period ends, you will be able to claim your LSUs plus any additional XRD. As the LSU:XRD pool is likely to slowly deviate due to the increasing value of locked LSUs, the same IL protection from Ignition will be in effect as necessary.
Receive an upfront bonus of 4% of the value of the tokens you have staked.

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