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Liquid Staking on NEAR Protocol: Benefits and Values

Learn the mechanism behind liquid staking and the value Meta Pool brings to NEAR protocol

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TL;DR

  • What is liquid staking?
  • What role does staking play in DeFi?
  • Why liquid staking is valuable to ecosystems and individuals
  • The utility of stNEAR in the NEAR protocol ecosystem

Liquid Staking on Meta Pool

Understanding Crypto Staking

Whether you are new to crypto or a seasoned user of NEAR protocol’s various DeFi platforms, understanding the value of staking is essential to maximizing your returns. 

Across many layer 1 chains that operate a proof-of-staking (PoS) model, one of the most incentivized forms of earning APY is crypto staking. For instance NEAR protocol offers around 10% APY on staking your tokens. Thus for each 10 $NEAR token staked you will receive 1 $NEAR in staking rewards.

In this traditional staking model, tokens are locked on the smart contract until you decide to unstake them. On NEAR network this takes 4 epochs, or about 2 days. And while this method generates reliable returns, it renders your capital illiquid and limits your earning potential to the basic staking APY. 

Liquid Staking

On August 21, 2021, Meta Pool introduced liquid staking to the NEAR ecosystem to solve this problem. Meta Pool’s model changes the way staking is done, and can truly unlock the power of the NEAR DeFi ecosystem. 

NEAR Liquid Staking with Meta Pool on NEAR Protocol - Get stNEAR

When staking with Meta Pool, an individual will deposit their NEAR for a healthy APY of around 10%. Normally, the process of providing funds for a PoS and earning rewards in exchange stops here. However, with Meta Pool, for each 1.09 $NEAR you stake, you receive 1 $stNEAR. 

Every time you use the stNEAR token in other DeFi protocol across the NEAR ecosystem, you will add the DeFi protocol APY to the staking APY. Let’s break down the benefits of liquid staking for both the user and the ecosystem!

The Value of Liquid Staking for the NEAR ecosystem

NEAR is a Proof-of-Stake (PoS) model that requires individuals to stake with validators. Those validators will confirm transactions as they occur on the network. 

Without an overly technical analysis, staking is what gives these validators the power to verify transactions and create new blocks. This is why staking is so valuable.

The primary benefit to the ecosystem of having a liquid staking solution is that capital becomes free. Instead of locking your tokens simply for the sake of the validator to confirm transactions, you can use your $stNEAR to engage with more projects for instance.

Liquid staking puts more tokens back on the market within a given ecosystem, and fuels project growth with tokens that would otherwise be locked. 

Stake your $NEAR on Meta Pool

Enter the Meta Pool app and stake your $NEAR

Receive $stNEAR

After staking your $NEAR, you will be able to withdraw your $stNEAR

Use your $stNEAR to participate in NEAR DeFi

Once you have your $stNEAR - go out an increase your APY!

The Value of Liquid Staking for Users

While liquid staking provides benefits to the ecosystem by supporting the proof-of-stake model, the real benefits are for users like you

Not only can you earn the standard staking yields from Meta Pool’s APY, but you have also the ability to leverage your capital in a number of different ways. Across both the NEAR and Aurora DeFi ecosystems, there are a number of different popular strategies.

The DeFi ecosystem on NEAR protocol at a glance

One such strategy involves using your $stNEAR to earn additional tokens through lending and borrowing protocols that allow you to earn rewards in exchange for providing liquidity. Another option is to use your $stNEAR to borrow tokens to yield farm in high APY pools. 

Finally, you can use your $stNEAR on lending or borrowing protocols to borrow additional tokens, and leverage those tokens to borrow more. This strategy called “degen loop”, can be very lucrative, but also very risky – always DYOR! 

The ways to use your $stNEAR on NEAR protocol are seemingly endless. There are many options to earn very significant rewards. The bottom line is that without a liquid staking solution, none of this would be possible. Meta Pool frees your tokens and makes all these strategies possible. 

Meta Yield and $stNEAR

Meta Yield is one more platform where you can use your $stNEAR to earn additional rewards. In these market conditions it is more important than ever that users have a method of backing projects they believe in, without risking their capital. 

Meta Yield allows you to back a project with $stNEAR for a locked period. The project will receive the staking rewards on the $stNEAR, and the backer will receive the native token of the project. After the lock period, your $stNEAR is returned to you in the form of $NEAR! 

As such, our platform Meta Yield provides one of the only truly de-risked methods of supporting development and growth of upcoming projects. Liquid staking makes all of these initiatives possible – so what are you waiting for? 

Stake. Earn. DeFi.

About Meta Pool & stNEAR

Meta Pool is the leading liquid staking solution for $NEAR and wNEAR token holders. With Meta Pool you earn NEAR staking rewards and maintain your liquidity to participate in DeFi protocols on NEAR and Aurora.

Users staking $NEAR and wNEAR with Meta Pool receive in exchange stNEAR (staked NEAR) tokens.

stNEAR simultaneously accrues staking rewards and unlocks users’ liquidity enabling them to participate in DeFi activities (e.g. lending, farming, borrowing) on NEAR and Aurora.

Stake $NEAR on Meta Pool

~11% APY

Get stNEAR

Yield-bearing token

Go DeFi on NEAR & Aurora

More APY and more rewards

Meta Pool also solves the problems associated with Proof-of-Stake networks staking: illiquidity, immovability and accessibility. Meta Pool also aims to distribute staking in multiple validators to improve censorship-resistance of the NEAR network.

With a TVL of ~9 Million $NEAR and growing, Meta Pool has become in just a few months a cornerstone element of the NEAR ecosystem. Meta Pool is making NEAR Protocol more decentralized and therefore more secure.

In February 2022 Meta Pool has been successfully audited by BlockSec, confirming the implementation of the highest security standards.

For more information visit https://metapool.app.

Join Meta Pool & stNEAR Community

If you have any questions or wish to be part of our project, don’t hesitate to join our official platforms and reach out to the team!

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