Why Liquid Staking Derivatives are the Future of Crypto - by Ambassador
Hello. My name is Tim. I am an ambassador in the amazing project SFT Protocol. Today I wanna talk to you about LSD and say a few words about Filecoin.
Okay. We are beginning. First of all, I wanna talk to you about why Liquid Staking Derivatives (LSD) are the future.
Liquid staking derivatives represent an innovative approach to staking cryptocurrencies that offers several potential benefits to the wider crypto ecosystem. Some of the reasons why liquid staking derivatives may be the future of crypto are:
1. Increased liquidity: Traditional staking locks up a portion of a user’s cryptocurrency for a period of time, making it illiquid. Liquid staking derivatives allow users to continue to trade and move their staked tokens while receiving staking rewards. This increases liquidity and enables more efficient use of staked funds.
2. Improved capital efficiency: Liquid staking derivatives can be used to create tokens that represent the staked value, allowing users to trade and use them in other DeFi protocols. This enables users to benefit from staking rewards while still leveraging their staked funds as collateral for other transactions.
3. Access to staking rewards: By creating liquid staking derivatives, users can participate in staking and earn rewards without having to meet the minimum requirements for staking, such as holding a certain amount of tokens or running a node.
4. Reduction of validators risk: Liquid staking derivatives can help reduce validator risk by allowing delegators to transfer their “staking rights” to other validators without actually moving their tokens. This can increase the security of the network by allowing participants to switch validators more easily in response to any potential issues.
5. Enhanced governance participation: Liquid staking derivatives can potentially increase participation in on-chain governance. By creating governance tokens that represent staked funds, users can participate in voting while still earning rewards.
In conclusion, liquid staking derivatives offer several advantages over traditional staking models and have the potential to become a game-changer for the crypto industry by increasing liquidity, improving capital efficiency, reducing risk, and enhancing governance participation.
Okay. So now we know why LSD is the future. Okay, now let’s talk about the best LSD protocol. I am talking about SFT Protocol.
What is The SFT Protocol?
The SFT protocol is based on the Substrate architecture, cross-chain communication, and modular underlying application public chain, to solve those assets that are locked by a stake in the medium and long term and cannot flow: such as FIL, DOT, ETH2.0, etc., providing a kind of decentralization Protocol that enables locked assets to circulate freely.
Have you ever heard about FIL? Do you know what is that?
Filecoin is a decentralized peer-to-peer file storage network and cryptocurrency designed to create a more efficient and secure way to store and share data. It was created by Juan Benet and his team at Protocol Labs, with the mission of making data storage more affordable, reliable, and decentralized.
In the Filecoin network, users can offer storage space on their computers to other users, who can then pay for the storage with Filecoin tokens (FIL). This means that instead of using centralized servers owned by companies like Google or Amazon to store data, users can store their data in a more distributed way, where other users lend parts of their unused storage space to create a peer-to-peer network.
The Filecoin network also provides a way to incentivize users to contribute storage space and maintain the network by awarding them with Filecoin tokens. This ensures that the network is always active and that there is enough storage space available to meet the demand of users.
In short, Filecoin is a decentralized, secure, and efficient way of storing and sharing data that empowers users by putting control over their data back in their hands.
I am glad to introduse to you SFT Protocol.
You should try it. And by the way. SFT Protocol testnet is alive! Try it by yourself. You will like it. I know.
