Introducing The SFT Protocol-by ambassador
One of the most recent trends in DeFi is the introduction of liquid staking derivatives. DeFi has seen a spike in the development and adoption of new financial products. This has resulted in a noteworthy increase in monetary returns for DeFi and has made staking more accessible to a wider range of users who can now benefit from both staking rewards and liquidity. We may anticipate seeing more cutting-edge goods, like LSDs, emerge as the DeFi ecosystem keeps developing, spurring even greater growth and adoption. So let’s dive into what LSD really means.
WHAT IS LIQUID STAKING DERIVATIVES (LSDs)?
Liquid staking derivatives are a new financial instrument that enables users to earn staking rewards while also retaining liquidity over their staked tokens. For instance, a user deposits their tokens with a liquid staking provider, who then stakes those tokens on behalf of the user. In return, the provider issues the user a receipt or a token representing the staked tokens, which can be traded or used as collateral elsewhere.
Liquid staking derivatives allow staked assets to be “unlocked” and traded as derivatives, such as futures or options, while still earning staking rewards. This means that investors can benefit from the rewards of staking, while also having access to liquidity for their assets. Having known what LSD means, let me introduce you guys to SFT Protocol, liquid staking derivatives for Filecoin that are still at the early stage.
WHAT IS THE SFT PROTOCOL?
I’m really glad to introduce what SFT Protocol stands for. The Substrate architecture, cross-chain communication, and modular underlying application public chain serve as the foundation for the SFT protocol, which was developed to address the problem of assets that are frozen by a stake in the medium and long term and cannot flow. With this SFT Protocol is providing a type of decentralization Protocol that permits the free movement of locked assets. As a decentralized protocol, it is used to create high-performance public chain cloud nodes and to provide liquidity for staking assets. In addition, it is a platform provider also offering privacy computing and distributed storage capabilities.
Filecoin, which is a decentralized storage network will be the first public chain where the SFT Protocol will be applied for the purpose of addressing the issue of FIL being staked for a long period and low token liquidity. It is important to know that SFT Protocol will be applied to more public chains in the future. Let me also introduce SFT Protocol tokens.
SFT PROTOCOL TOKENS
yeah, tokens, in SFT Protocol, there are actually two types of tokens, the first token is called SFT, which servers as the Alternative token, and the other is called SPD, this token serves as the Native token. It is suitable to know what these serve as;
What I can say about SFT is that it is SFT is primarily responsible for the medium of liquidity. While
The primary functions of SPD are value capture, consensus incentives, system abuse prevention, and system voting governance. It is basically a system transaction medium. Even at it, early-stage events have started happening, here is a summary of SFT Protocol's latest events or happening.
THE LATEST EVENT IN SFT PROTOCOL
SFT Protocol has recently launched the early Testnet Whitelist, which is a clear indication that the Testnet is coming soon. We know how Testnet works, for testers who assist SFT Protocol in researching issues, will receive great rewards!
It's good you’re early, for more information about the Testnet Whitelist click HERE
For more articles about SFT Protocol, I encourage you to follow this account.
STAY CONNECTED WITH SFT PROTOCOL
If you want more information and get updates on SFT Protocol follow their social channels via the links below.
🔗Official links: SFT Protocol Twitter Discord Telegram Gitbook Youtube Linktree
