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Blockdaemon & StakeWise Liquid Staking Solution

We’re proud to partner with StakeWise to deliver an institutional-grade liquid staking product on Ethereum 2.0 (Eth2). This will be the world’s first Eth2 liquid staking solution for financial institutions.

Institutions will soon be able to stake, participate in DeFi and earn yield securely. This product enables full AML compliance via an audited smart contract that limits interaction to fully KYC'd funds only.

What is Liquid Staking?

Liquid staking frees staked crypto from lockup periods. In some blockchains (e.g. Cardano) liquid staking is enabled by default at the protocol level. Other protocols (Solana, Polkadot and Eth2) rely on third parties to offer liquidity. These chains restrict staking withdrawals with a lockup period, driving the demand for liquid crypto.

The liquid staking market is the next frontier of staking growth. This growth is fueled by the increasing popularity of proof-of-stake protocols. Currently, $7.5B Eth is staked in liquid staking protocols. This translates to 20% of the total share of Eth staked in Eth2.

Institutional Liquidity Solution

Liquidity is the lifeblood of Ethereum’s DeFi ecosystem. Blockdaemon and StakeWise are building an institutional-grade liquid staking solution to provide liquidity to institutions. This brings a suite of benefits to clients.

  • Fully Compliant

    Only fully compliant customers will be able to stake and interact with whitelisted counterparties, permissioned DeFi contracts and select centralized venues. A suitable option for institutions has been unavailable up until now. KYC / AML is a mandatory requirement for financial institutions. However it doesn’t exist in the liquid staking solutions currently on the market.
  • DeFi Yield

    This product will allow institutions to earn staking rewards on their staked tokens. They will also be able to withdraw derivative tokens early and earn additional yields in DeFi. This delivers greater capital efficiency.
  • Value-Added Service

    Liquid staking is attractive to both institutions and their customers. It is a valuable staking-as-a-service. It also avoids exit queues. Such a service could be offered to an institution’s customers, as a value-add.

The Unique Advantages of Blockdaemon and StakeWise

Blockdaemon and StakeWise are soon rolling-out the testnet for this exciting liquid staking product.

This will give prospective customers the chance to test out the features in a safe, early environment. Following this, a full audit will be conducted by Runtime Verification to ensure complete correctness before launch. Once these stages are completed, we’ll be ready to launch.

Learn how Blockdaemon and StakeWise are perfectly positioned to deliver an exceptional liquid staking product.

  • StakeWise

    StakeWise is uniquely positioned to help deliver this industry-first product.

    1. Best-in-Class Eth2 Liquid Staking Experience 

    StakeWise brings a best-in-class Eth2 liquid staking experience. Currently, around 50k Eth is delegated to StakeWise’s validators. This is testament to its market-tested liquid staking protocol with real customer demand and traction. 

    2. Strong Engineering Talent 

    This liquid staking product is bolstered by their deep engineering talent pool.

    3. Deep Integrations into the Ethereum Ecosystem 

    StakeWise has a long-standing reputation as a contributor to the health of the Ethereum ecosystem. StakeWise has also nurtured lasting relationships with various DeFi projects. They have developed a roadmap to improve the security and utility of staked capital in DeFi.

  • Blockdaemon

    Blockdaemon has years of experience delivering high-quality blockchain infrastructure

    1. Industry Leading Staking Provider

    Today, around $11B is delegated to Blockdaemon validators. So, Blockdaemon will run the validators for this Eth2 liquid staking product. We are the bedrock infrastructure for institutional crypto staking. 

    2. 100% Slashing Insurance

    Blockdaemon’s 100% slashing insurance guarantee covers any risk of slashing occuring. Slashing is a feature of many proof-of-stake networks to curb malicious activity and incentivise good behavior among validators, the entities responsible for securing the network. In the unlikely event of a slashing taking place where Blockdaemon is at fault, our 100% slashing insurance guarantee covers any potential loss which may occur. This pioneering approach is testament to the strength of our infrastructure and engineering expertise in avoiding slashing events before they happen. 

    3. Fully Compliant 

    Blockdaemon’s full regulatory compliance is uniquely suited to this innovative offering. We have robust KYC/AML compliance policies. We monitor on-chain behavioral indicators and regularly perform risk-scores. 

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