🚀Liquid dApp Staking V2.0 (new)

Algem’s Liquid Staking V2 represents a significant evolution of the liquid staking architecture initially introduced with version 1.5. Built on the Astar Network, the revamped system addresses key limitations of its predecessor while introducing innovative mechanics to enhance user experience, security, and integration with decentralized finance (DeFi) ecosystems.

Key Innovations in Liquid Staking V2

1. Reward-Bearing Architecture

   • xnASTR Token: Replacing nASTR, the new liquid token, xnASTR, adopts the Chainlink CCIP format to enable cross-chain compatibility and seamless use in various DeFi applications.

   • Dynamic Value Accumulation: xnASTR automatically accumulates staking rewards, eliminating the need for manual claiming.

2. Enhanced User Flexibility

   • Multiple Unstaking Options: Users can choose between regular unstaking (10-13 ERAs wait), immediate unstaking with a 1% fee (subject to reward pool availability), or trading xnASTR on Automated Market Makers (AMMs).

   • Cashback System: NFT-based discounts allow users to reclaim a portion of the staking management fees.

3. Improved Integration and Usability

   • Cross-Chain Compatibility: The Chainlink CCIP token format enables seamless cross-chain compatibility and integration with DeFi platforms.

   • Voting Mechanism: Stakers can allocate their ASTR to specific dApps using veALGM tokens, empowering community-driven decisions.

4. Scalable and Secure Architecture

   • Elimination of Adapter Contracts: The new architecture minimizes security risks and improves scalability by removing the reliance on adapter contracts.

   • Compounding Rewards: Staking rewards are periodically re-staked to enhance annual percentage returns (APRs).

Addressing V1.5 Limitations

1. Low Incentives for AMMs: The absence of inherent trading incentives in nASTR pools is addressed by the reward-bearing design of xnASTR, fostering increased activity on AMMs.

2. Limited Cross-Chain Usability: The transition to CCIP format enables interoperability across unlimited number of chaines.

3. Security Risks: Adapter contracts, a scalability bottleneck in V1.5, are eliminated in V2’s design.

Revenue Model and Tokenomics

Algem’s Liquid Staking V2 introduces a sustainable revenue model:

• Fee Structure: A 10% fee is charged on staking rewards and allocated to ALGM token stakers.

• Governance and Incentives: veALGM tokens empower users to participate in governance and influence the allocation of staking rewards across dApps.