Mohak Agarwal is the lead developer for ClayStack, and in a report, he talked about the challenges associated with staking crypto and how ClayStack addresses these challenges.
(1/8) To top the crypto and bitcoin excitement, I have some news to share. This new year marks the launch of @ClayStack_ and a new way to stake crypto.
Take a look inside – https://t.co/n9Hlz8CczH#StakingReDeFined #DeFi #Crypto #Ethereum
— Mohak Agarwal (@mohakagr) January 5, 2021
Challenges Involved With Staking Crypto
With staking, your freedom with your crypto can be restricted. This represents some of the challenges associated with staking your assets. To secure the network, staked assets are held in an escrow contract in order to carry out the registration process of the delegator in the consensus. Even when you keep on receiving staking rewards, you are still unable to gain access to your staked assets as a token holder.
In the staking process, an unbonding period is usually required. The unbonding period is the time where you, as a token holder, will wait before assets can be transferred or sold. Topping all other challenges associated with staking is the opportunity costs. Staked assets may be unable to participate in new DeFi opportunities that may arise.
Introducing ClayStack
With ClayStack, a novel approach is utilized towards staking. ClayStack makes use of relayers and oracles to ensure that interchain communication can be possible with any blockchain. When users deposit their tokens to ClayStack smart contracts, they will also be able to directly mint the equivalent derivative token on the Ethereum chain.
Staking of these tokens is made to WolfEdge Capital validator nodes, and every day, derivative token holders receive their rewards. Furthermore, users can use their synthetic/derivative tokens in DeFi applications. By doing so, you can improve your earning rewards.
On ClayStack, 1:1 staking derivatives are fungible and can be traded or transferred. Through CLAY tokens, liquidity providers can earn rewards when they make derivatives markets liquid. ClayStack has multi-blockchain support and, thus, will enable you to interact with multiple blockchains at no additional cost.
Additionally, transparency is guaranteed at ClayStack as everything is executed on-chain. There are no lock-up periods in ClayStack, thereby giving you the ability to transfer or sell your stake tokens at any preferred time. You can also choose to stake as many, or as few, tokens you desire as there are no minimums.
Over the last few months, the ClayStack team has been working on building the platform and improving the entire user experience. In addition, pre-seed funding has been raised from CXOs in the blockchain industry. Currently, the team is working on providing a liquidity solution and is accepting partnerships.
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