The BNB Chain ecosystem is poised to undergo a transformative integration known as the BNB Chain (BC) Fusion. This significant shift involves merging all key operations from the BNB Beacon Chain into the BNB Smart Chain (BSC). The primary aim of this consolidation is to streamline processes, heighten operational efficacy, bolster security measures, and adapt the chain’s structure to meet current and future technological demands.

The Fusion’s Impact on Validators and Staking

Post-BC Fusion, validators on the BNB Chain are set to experience more lucrative staking possibilities, especially through innovations like maximum extractable value (MEV) and liquid staking derivatives (LSDFi).

Staking Opportunities Post-BNB Chain Fusion The upcoming BNB Chain Fusion is set to transform the BNB Chain ecosystem by merging all activities from the Beacon Chain to the BNB Smart Chain (BSC).This strategic move is designed to enhance operational efficiency and… pic.twitter.com/bqeAhAR8yf

— BNB Chain (@BNBCHAIN) April 25, 2024

The MEV Advantage on BNB Chain

MEV stands for the maximum extractable value which validators can realize from block production, surpassing the usual block rewards and gas fees. BNB Chain plans to introduce advanced MEV solutions such as Puissain, TxBoost, and BloxRoutes. These initiatives aim to foster a competitive and equitable MEV market, significantly boosting validators’ earnings potential by an estimated 5-10%.

Introducing LSDFi: A Game Changer in Staking Flexibility

Liquid staking derivatives on BNB Chain allow network participants to maintain asset liquidity while securing the network. This process involves issuing tokens that represent staked BNB, enabling users to utilize these assets in DeFi activities without losing their utility.

Key Features and Benefits of LSDFi on BNB Chain

Scheduled Implementation: The integration of liquid staking is planned between April and early May 2024, with extensive testing to ensure flawless execution.

Enhanced Staking Opportunities: Following the transition, BNB Chain aims to offer attractive APYs for native staking on BSC, augmented by additional MEV rewards.

Security Enhancements: The security team is dedicated to protecting the private keys associated with LSDFi, ensuring trust and integrity within the ecosystem.

Expanded Opportunities for Validators and Delegators

The fusion not only benefits validators with increased earnings and greater block proposal chances but also allows delegators to engage directly in voting and governance on BSC. This newfound inclusivity and the potential for daily compounding staking rewards, combined with MEV income streams, position BNB Chain as a highly attractive platform for stakers.

Looking to the Future: BNB Chain After the Fusion

The BC Fusion marks a new era for the BNB Chain, enhancing its capabilities with the integration of LSDFi and MEV. This strategic move is designed to maximize validator earnings, provide greater liquidity for assets, and encourage broader participation in the ecosystem. With these advancements, BNB Chain is well-equipped to meet future demands and continue its growth in the DeFi sector.

By fostering a robust and innovative environment, BNB Chain is not just adapting to the evolving crypto landscape but is setting a standard for future developments within the blockchain community.

Illustration (source: freepik.com)

#Ethereum Shanghai Upgrade is just around the corner, and millions of #ETH is about to enter the market. Will this lead to a drop in ETH's price? Is it a nightmare await for ETH holders?

TL;DR:

Ethereum Shanghai Upgrade is planned to happen on April 12th 2023, this will allow ETH stakers to withdraw their staked ETH

Almost 18 million ETH staked, or equal to around US$32 billion

There are 2 options to withdraw the staked ETH: partial or full

Partial, stakers can withdraw only the interest, possibly 1 million ETH withdrawable for this option

Full, stakers can withdraw all of their staked ETH, but with the network maximum capacity of 50.400 ETH each day

57% of ETH stakers are liquid stakers through Liquid Staking Derivatives platform providers

Artikel ini juga tersedia dalam Bahasa Indonesia. Jika Anda ingin membaca artikel ini dengan versi Bahasa Indonesia, Anda dapat memindai kode QR di bawah ini:

The Ethereum network transition from the Proof-of-Work (PoW) consensus mechanism to the Proof-of-Stake (PoS) evolution is ongoing to improve the network's scalability, energy efficiency, and security. This transition began with The Merge on September 15th, 2022.

Another major Ethereum upgrade operation is scheduled for this month, specifically on April 12th, 2023. This upgrade is called The Shanghai Upgrade, and it is rumored to significantly affect the price of ETH.

Why is that? Through The Shanghai Upgrade, there will be a major change in the Ethereum network and ETH. The change is that ETH stakers will be able to withdraw or unstake their staked ETH.

Since December 1st 2020, ETH can be staked on the Beacon Chain as the requirement to be a validator on the Ethereum network, with minimum 32 ETH to be staked. Beacon Chain is a new layer on the Ethereum network designed as "validators layer", the layer where transactions being validated and new blocks being created on the Ethereum network.

Until this day, ETH stakers could not withdraw and unstake their locked ETH back, but with the upcoming Shanghai Upgrade, stakers will be able to unstake and withdraw their staked ETH. This raises the question of how the Shanghai Upgrade will affect ETH's price. Will the upgrade cause a depreciation in ETH's price?

What it is Means for Ethereum Shanghai Upgrade?

Based on the data from Ethereum's official website, ethereum.org, at the time of writing this article, the total amount ETH being staked almost reach 18 million ETH, equivalent to around 32 million United States Dollar. This means that a significant amount of ETH may come into the market in the near future.

However, it is important to note that the staked ETH after the Shanghai Upgrade cannot be withdrawn all at once. This should help protect the ETH price and hold back selling pressure that might otherwise occur if all staked ETH were withdrawn simultaneously.

ETH staking statistics source: ethereum.org/en/staking/ (accesed on April 4th 2023, 5:30 AM UTC)

According to Binance Research, validators have two options for withdrawing their staked ETH: partial or full withdrawal.

With partial withdrawal, validators can withdraw only the interest earned on their staked ETH, without the original staked capital. This means that up to 1 million ETH (~US$1.8 million) could potentially enter the market through this withdrawal option.

Alternatively, validators can opt for the full withdrawal option, which allows them to withdraw both their staked capital and interest. However, the Shanghai Upgrade has been designed to limit daily withdrawals to 50,400 ETH (~US$91.3 million).

As a result, there will only be US$91.3 million worth of selling pressure on the ETH price each day from the full withdrawal option. Mathematically, this amount would only affect about 1% of ETH's price each day based on Ethereum's market cap in the last 24 hours.

It is worth noting that the majority of ETH stakers, which is 57% of them, are liquid stakers through Liquid Staking Derivatives (LSD) platform providers such as Lido, #Binance , Coinbase, and others.

Liquid Staking is a process of staking or locking coins, in this case, ETH, through #LSD platforms. Stakers will receive a token that has the same value as their staked ETH as a derivative ETH token. This allows stakers to use the derivative token for many things while still participating in validating the Ethereum network.

ETH stakers composition (source: #BinanceResearch )

LSD platforms have been existed long before the Shanghai Upgrade become the main topic and have been become the main option for many ETH stakers around the globe. Therefore, it can be said that this group of stakers - liquid stakers - do not have a special reason to sell off their ETH post-Shanghai Upgrade, as they would have already done so in the months before.

Conclusion:

With the implementation of those two withdrawal options, it can hold back the selling pressure post-The Shanghai Upgrade. However, only 43% of the ETH stakers are illiquid and waiting for the upgrade because the liquid stakers would have already sold their derivative ETH tokens long before.



DISCLAIMER:

This article is just for information purposes only, not any financial advice. This article may be used as a reference but please always Do Your Own Research (DYOR) based on your own personal preferences, especially when it comes to spending money. Mad's Crypto Corner is not responsible for your own financial decisions.

The long-awaited Hydro Mainnet is finally launching tomorrow.

Early Access Farming will begin with the Mainnet Launch. We have prepared EAF to introduce the basic utility of $hINJ and LSDFi .

To learn more about what EAF is, refer to the link below:
📄 https://t.co/mk4IM3LaX2… pic.twitter.com/Fl8px3WbMT

— Hydro Protocol (@hydro_fi) January 30, 2024

Introduction

#0xLSD  is a groundbreaking decentralized liquidity provision protocol that is set to redefine the landscape of the Web3 world. Built with a vision to address the challenges in the #LSD (Liquidity Sensitive Derivative) market, 0xLSD leverages advanced technologies, including AI data analysis and intelligent algorithms, to offer solutions for enhancing liquidity, improving security, and increasing scalability.

The 0xLSD Solution

Addressing Market Pain Points

0xLSD is engineered to tackle critical issues faced by participants in the LSD market. Its comprehensive solutions are designed to enhance liquidity, improve fund security, and scale derivative protocols effectively.

Enhancing Liquidity: 0xLSD employs AI data analysis and intelligent algorithms to identify high-yield protocol combinations. By optimizing liquidity provision, it reduces trading costs, making it an attractive choice for both liquidity providers and traders. This innovative approach facilitates stable and sustainable liquidity in the Web3 world.

Improving Security: Security is paramount in the DeFi space, and 0xLSD takes it seriously. Through frequent on-chain data monitoring and timely alerts, combined with sentiment analysis and AI-driven risk mitigation, 0xLSD enhances the security of user funds. Participants can trade with confidence, knowing that their assets are safeguarded.

Increasing Scalability: Scalability is a common challenge in public blockchains. 0xLSD addresses this limitation by integrating AI-powered order placement, data analysis, and intelligent algorithms. This breakthrough enables short-term opening and settlement positions, elevating trading frequency and throughput to unprecedented levels. This scalability is vital in catering to the growing demands of the DeFi sector.

Deployment

0xLSD is initially deployed on two prominent blockchain networks, the Binance Smart Chain (#BSC ) and Arbitrum (#ARB ). These choices are driven by several compelling factors:

Low Transaction Fees: BSC and ARB are known for their low transaction fees, making them attractive to users. This cost-effectiveness enhances the accessibility of 0xLSD, enabling a broader user base to participate in liquidity provision and trading.

Fast Transaction Confirmation Times: Speed is crucial in the world of DeFi, and BSC and ARB deliver with fast transaction confirmation times. Users can execute trades and liquidity provision activities swiftly, enhancing the overall user experience.

Growing Ecosystems: Both BSC and ARB have steadily growing ecosystems, offering various DeFi applications and services. This robust ecosystem provides opportunities for users to connect and collaborate with other blockchain networks, expanding the reach and functionality of 0xLSD.

Interoperability: BSC and ARB offer interoperability opportunities between chains, allowing assets and data to move seamlessly. This interoperability enhances the versatility of 0xLSD, enabling it to tap into a broader range of assets and services.

ARB’s Tier 2 Scaling Solution

Arbitrum’s Tier 2 (second layer) scaling solution is a crucial component of 0xLSD’s deployment strategy. This solution addresses the scalability challenges faced by the main Ethereum chain. By providing higher transaction throughput while maintaining a secure connection to the main chain, ARB enhances the performance of 0xLSD and ensures a seamless user experience. Users can enjoy the benefits of Ethereum’s security while enjoying the speed and efficiency of ARB.

Yield Strategy Protocol

In addition to its liquidity provision and security features, 0xLSD offers a Yield Strategy Protocol that empowers users to maximize their returns. This protocol enables users to employ smart contracts and algorithms to optimize their LSD usage across various DeFi protocols. Users can enjoy staking rewards and achieve higher returns, adding a layer of flexibility and profitability to their DeFi activities.

Conclusion

0xLSD is poised to revolutionize the #Web3 world by providing innovative solutions for liquidity provision, security enhancement, and scalability improvement. Its deployment on the Binance Smart Chain and Arbitrum blockchain networks ensures accessibility, cost-effectiveness, and a growing ecosystem. With the added benefits of ARB’s Tier 2 scaling solution and the Yield Strategy Protocol, 0xLSD promises to reshape the DeFi landscape, offering users a new level of efficiency and profitability. As the DeFi sector continues to evolve, 0xLSD stands at the forefront, ready to lead the way into a new era of decentralized finance.

Recent data reveals that the total value locked (TVL) in decentralized finance has jumped past the $80 billion milestone, reaching heights not observed since the downfall of Terra’s stablecoin in May 2022. Leading the charge in 2024 by TVL size is Lido’s liquid staking platform, with ether-based liquid staking derivatives (LSDs) securing a dominant position […] Source: Bitcoin.com

The post Defi’s Total Value Locked Hits $80 Billion in a Dramatic Turnaround Since 2022 appeared first on Crypto Breaking News.

Avely Finance has officially launched its liquid staking protocol on the Zilliqa mainnet.

The protocol and stZIL token are live in a beta phase and open to all users on the network, bringing more utility and flexibility to staking on Zilliqa and building a strong foundation for DeFi growth.

Find out more about Avely Finance's liquid staking protocol and stZIL token below:

https://blog.zilliqa.com/avely-finance-launches-liquid-staking-on-zilliqa-mainnet/

#Zilliqa #LiquidStaking #LSD #DeFi #defiprotocols #AvelyFinance