Liquid staking is an important concept in decentralized finance because it attempts to combine staking participation with greater capital flexibility.
Within the TRON ecosystem, sTRX provides an example of how staking-related positions can become integrated into DeFi applications.
The basic idea is that users can obtain a tokenized representation of a staking position and potentially use that representation across supported DeFi infrastructure.
Potential advantages include:
• Maintaining exposure to staking-related activity
• Improving capital composability
• Creating additional DeFi use cases
• Connecting staking with lending or liquidity strategies
But users should also understand the additional risks introduced by smart contracts, liquidity conditions and the behaviour of the underlying asset.
DeFi innovation is ultimately about making capital more programmable without pretending that risk disappears.
@JUST DAO @Justin Sun孙宇晨 #TRONEcoStar
Within the TRON ecosystem, sTRX provides an example of how staking-related positions can become integrated into DeFi applications.
The basic idea is that users can obtain a tokenized representation of a staking position and potentially use that representation across supported DeFi infrastructure.
Potential advantages include:
• Maintaining exposure to staking-related activity
• Improving capital composability
• Creating additional DeFi use cases
• Connecting staking with lending or liquidity strategies
But users should also understand the additional risks introduced by smart contracts, liquidity conditions and the behaviour of the underlying asset.
DeFi innovation is ultimately about making capital more programmable without pretending that risk disappears.
@JUST DAO @Justin Sun孙宇晨 #TRONEcoStar
