StakeEasy SEASY: Liquid Staking for SCRT on the Secret Network Blockchain
*obligatory not financial advice*
What is StakeEasy?
StakeEasy is a platform for liquid staking of the SCRT coin on the Secret Network blockchain.
Secret is a smart contract blockchain that has privacy by default and is highly interoperable thanks to being part of Cosmos's IBC protocol. The blockchain uses proof of stake to achieve a consensus and encourages its users to take part in the governance process thru staking with newly minted SCRT coins as reward. So any holder should want to keep most of their coins staked because otherwise they would be hurt by inflation. The problem there is that SCRT has a 21 days unstaking period, meaning that you need to undelegated your funds 3 weeks before you need them. StakeEasy is providing a solution for that by tokenizing staked SCRT.
The platform allows you to put your SCRT coins into a pool that is further delegating its liquidity to multiple validators and periodically claims rewards and adds them to the pool. When you deposit funds to the pool, you receive seSCRT tokens that represent your share of the pool. StakeEasy works similar to Lido and its stETH, but your amount of seSCRT doesn't increase, but instead adds the staking rewards to the underlying pool, which makes its value grow.
The main advantage about this is that you can use seSCRT in other DeFi applications while directly staked SCRT cannot be used. This would make it possible to use your staked funds as collateral in a lending protocol, while still earning staking rewards with it.
Another advantage is that the SCRT is automatically staked across multiple different validators. This is an advantage because validators and their delegators can get their funds slashed if they misbehave and the StakeEasy platform allows its users to counter that by easily diversifying their stake.
Holding seSCRT also lets you take advantage of compounded interest because the rewards are automatically claimed and reinvested, if you would stake directly you would have to claim and re-stake your rewards manually and pay a gas fee for every transaction.
StakeEasy provides a very convenient way for earning a yield with SCRT coins but it does charge a 1% deposit fee. However, there are no fees for unstaking. When you want to redeem your SCRT coins, you need to burn your seSCRT tokens and have to wait 21 days because of the unstaking period of the blockchain. But you can also swap your seSCRT for SCRT on a decentralized exchange instantly and soon there will be a native DEX on StakeEasy for that reason.
Currently StakeEasy only runs on the Secret Network blockchain, but the long term goal is to migrate to other proof of stake chains too.
The SEASY Token
SEASY is the governance token of StakeEasy. The token will launch in the near future and will allow its holders to vote on changes to the protocol and on which validators should be supported and on how the community treasury should be spent. The token will also receive a share of the platform fees.
There is a 1% fee for depositing funds, half of that will be distributed to SEASY stakers and the other half will be set aside in the treasury of the DAO. The future native DEX for SCRT and seSCRT will have a 0.3% swapping fee, of which 0.2% will go directly to the liquidity providers, 0.05% will go to SEASY stakers and 0.05% will be added to the treasury.
There is a total supply of 200 million tokens. The community will receive 42% thru things like yield farming, 15% will be set aside for further development, 3% are used for strategic partnerships, 25% are going to the team and their advisors and 15% are sold to investors. The funds of the community, partnerships, team and some of the investors are being vested and distributed over the next 2 years.
The value of the token will obviously depend on how many people use StakeEasy, because its governance rights will have more demand if they affect more money and because the rewards for stakers and the treasury are growing with more users. There will be more demand for liquid staking with SCRT if the Secret Network blockchain performs well. The blockchain did have some problems with scalability during times with high traffic in the past, but there have been some improvements in that direction and it is one of very few smart contract chains with default privacy and high interoperability. So SCRT could gain a lot of value in the long term and so could the SEASY token.
The token hasn't launched on any exchange yet, but it will likely soon be available on the SecretSwap DEX and the Sienna DEX. You can use a Kelpr Wallet to interact with dApps on Secret Network and to store you cryptocurrencies.
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