Liquid Staking Derivatives (LSDs) are a financial innovation that combines the benefits of staking and liquidity in the world of blockchain networks. Staking involves holding tokens to participate in network consensus and earn rewards, but it often requires locking up the tokens for a specific period, limiting their liquidity and utility. In the case of XDC the miminum amount is too high for most of the users.
LSDs address this limitation by creating derivative tokens that represent the staked assets. We've developed xdcX as a XRC20 token. By holding xdcX, token holders can retain ownership of their staked assets while also enjoying the benefits of liquidity, fungibility, and tradability that come with derivative tokens.
Some important key features of our implementation:
The primary purpose of xdcX is to unlock the value of staked assets, allowing users to access liquidity and engage in various decentralized finance (DeFi) activities. xdcX enables token holders to stake their assets and simultaneously receive derivative tokens that can be freely traded, used as collateral, or utilized in other DeFi applications. This opens up new possibilities for investors and users to maximize the utility and potential returns of their staked assets.
Lack of documentation on the official docs.
Arturo helped a lot with that.
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