Injective has introduced liquid staking for the first time on its native token INJ!
stINJ (the official liquid stake form of INJ) was made possible by Stride, a specialized liquid staking app chain. stINJ allows users to unlock far more liquidity and income generation opportunities across the Injective ecosystem. In turn, liquid staking also brings far more use cases and benefits for the native INJ token.
To celebrate this milestone, Injective stakers will receive an exclusive Stride (STRD) airdrop, allowing the community to get involved in the management of the Stride DAO that contributed to the development of stINJ.
What is liquid staking and stINJ?
Traditionally, staking requires users to lock their tokens to secure a proof-of-stake (PoS) network. However, locked tokens cannot be used for DeFi ventures (trading, lending, etc.). Liquid staking aims to solve this problem by allowing users to place wagers while maintaining their liquidity.
With liquid staking, your tokens are delegated to a service that stakes for you without losing access to your funds. stINJ is a tokenized derivative of the staking INJ enabled by Stride, an interchain protocol specialized in liquid staking. Not only is Stride the first liquid betting zone for the Kosmos ecosystem, but it also allows for the greatest liquidity for large tokens like ATOM.
Stride allows you to insert INJ and emboss stINJ (staked INJ) at the same time. stINJ is a representation of your deployed INJ tokens that can be used elsewhere. So while your INJ is being staked and earning rewards, you can use the stINJ to participate in various DeFi protocols. stINJ can also be redeemed for INJ at Stride at any time.
Why is liquid staking important for INJ?
Liquid staking improves capital efficiency and maximizes revenue for users, as well as allowing users to generate passive income through staking. Staking is an important aspect within the Injective ecosystem. Staking INJ allows you to participate in Injective DAO governance, secure the network, and earn rewards. Injective currently has an APR of 17%, meaning most users have an incentive to wager their holdings.
Without liquid staking, using a token in DeFi requires it to be un-staked, thereby forfeiting the stake reward. But with liquid staking, INJ can be used both to participate in DeFi and to earn stake rewards, lowering the hurdle for DeFi usage. This effectively means that while earning stake rewards, you can also engage in trading, yield farming, lending, and much more.
How to get started with Liquid Staking INJ?
Getting started is easy!
- Just visit the Stride app here.
- Connect your wallet and select INJ from the dropdown menu
- Enter desired stINJ amount and click “Liquid Stake”
- Select “Start Staking” to approve the transaction
Liquid staking INJ in action
For a more detailed guide on how to mint stINJ and initial use cases, see the article written by a Stride community member here.
How can you use stINJ in DeFi?
stINJ is expected to unlock a variety of use cases over time.
There is currently a stINJ pool on Astroport. In fact, the stINJ pool is already one of the most liquid pools on Astroport! Users can pool their INJ and stINJ in this pool to provide further liquidity while participating in trading.
stINJ can also be used as collateral for other DeFi applications, further increasing the usefulness of INJ itself.
Stride (STRD) Airdrop for INJ Stakers
Stride is also celebrating the launch of stINJ by airdropping STRD tokens to Injective-Staker!
Here are the details
Snapshot: Monday, October 24 at 17:08 UTC (Injection Block 17469200)
Minimum threshold: 25 INJ, maximum threshold: 26,500 INJ
STRD to jettison: 100,000
Stakers can claim STRD in proportion to their stake amount. Addresses with less than 25 INJ at the time of the snapshot are excluded as the airdrop amount would be negligible. Addresses with more than 26,500 INJ stakes are included, but only up to this amount.
By awarding STRD to INJ-Stakers, they are introduced to the Stride DAO and have the opportunity to have a vote. This is important as the Stride DAO can help with decisions like choosing injective host chain validators.
The Future of Liquid Staking INJ
Liquid staking is a fundamental building block for financial applications on Web3. The launch of stINJ marks the beginning of a new chapter for the Injective community, taking the overall utility of INJ to a whole new level.
About Injection
Injective is a blazing-fast, interoperable Layer 1 blockchain optimized for building world-class Web3 financial applications. Injective provides developers with powerful plug-and-play modules to create unmatched dApps. INJ is the native asset powering Injective and its rapidly growing ecosystem. Injective is founded by Binance and backed by prominent investors such as Jump Crypto, Pantera and Mark Cuban.
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