Key Points:
- Sui Network introduces liquid staking in the latest upgrade.
- The upgrade is community-driven and ensures fully non-custodial liquid staking solutions.
- The unique approach promotes decentralization and user choice.
The Sui Network, a revolutionary Layer 1 blockchain that utilizes an object-centric data model to enhance Web3’s infrastructure layer, has unveiled a significant update that enables liquid staking as part of its latest network upgrade.
The latest network upgrade by Mysten Labs‘ Layer 1 blockchain introduces support for liquid staking of its native token. This development comes as a crucial step for the Sui community, as it opens up new possibilities within the network’s expanding DeFi ecosystem.
With the implementation of liquid staking on Sui Network, developers can now offer fully non-custodial solutions, allowing token holders to receive derivative tokens in proportion to the value of their staked SUI tokens.
Liquid staking is a process where stakers are rewarded with derivative tokens that reflect the value of their staked tokens. These derivative tokens offer flexibility and liquidity, enabling stakers to access the value that would otherwise be locked up.
One notable advantage of the Sui network’s unique architecture is that third-party liquid staking apps on Sui will provide the benefits of liquid staking without centralizing staking power in one or a few validators. The process involves two aspects: a third-party Move package issuing a derivative token equivalent to the staked token and the original token remaining staked to secure the network through the consensus process.
Compared to other networks, such as Solana, Aptos, and Sei, Sui’s formulation for liquid staking stands out in one key aspect. While other networks rely on third-party liquid staking protocols for both issuing the derivative and determining validators for staked tokens, Sui separates these two functions. As a result, Sui stakers can freely choose any validator on the network for their original tokens.
Liquid staking, in general, promotes decentralization by offering greater utility to stakers, encouraging more participants to stake and secure blockchain networks. However, some networks’ constraints on stakers’ choice of validator can concentrate power, which Sui’s liquid staking formulation effectively avoids.
The Sui Network’s latest upgrade marks a significant milestone in the development of its ecosystem, promising new opportunities for developers and users alike. As the blockchain space continues to evolve, Sui’s innovative approach to liquid staking sets it apart from its competitors, fostering a more decentralized and user-friendly environment for the Web3 ecosystem.
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Source: https://coincu.com/208005-sui-network-introduces-liquid-staking/