IoTeX Enhances Security, Embraces Liquid Staking Derivatives

The IoTeX blockchain governance community voted overwhelmingly (97%) in favor of supporting Ether (ETH) liquid staking derivatives, a move intended to bolster network security and attract developers. The proposal (IIP-13) increases the IOTX staking ratio, adding support for non-fungible token representations of staking buckets and enabling liquid staking protocols to manage stakes via smart contracts. This could lead to an expanded network use case and enhanced value proposition for IOTX tokens.

IoTeX Blockchain Embraces Ethereum Liquid Staking Derivatives, Enhancing Network Security and Decentralization

In a significant move, the IoTeX blockchain governance community has overwhelmingly voted in favor of supporting Ethereum (ETH) liquid staking derivatives, with an astounding 97% of token holders endorsing the proposal.

This decision, embodied in Improvement Proposal 13 (IIP-13), marks a notable step towards enhancing the network's security posture and decentralization. The proposal entails increasing the IOTX staking ratio, thereby expanding the pool of validators who process transactions and maintain the blockchain's integrity.

The drive behind IIP-13 is multifaceted. By boosting the staking ratio, IoTeX aims to strengthen its network resilience against potential attacks and malicious actors. Moreover, the proposal advocates for natively integrating support for representing staking buckets as non-fungible tokens (NFTs). This innovation will allow liquid staking protocols to seamlessly manage their stakes via smart contracts.

The adoption of liquid staking derivatives on the IoTeX blockchain holds immense potential for developers. It provides them with a convenient and efficient mechanism to launch liquid staking decentralized applications (dApps) and participate in the burgeoning decentralized finance (DeFi) ecosystem. The introduction of ETH liquid staking derivatives is expected to further elevate the utility of IOTX tokens and bolster the network's value proposition.

"Enhancing the IOTX staking ratio, and consequently the security of our blockchain, has always been a cornerstone of our strategy," emphasized Raullen Chai, Co-Founder of IoTeX. "IIP-13 is a testament to our commitment towards augmenting the security and decentralization of the IoTeX blockchain."

With the implementation of this new feature on both test and live networks, developers can swiftly deploy liquid staking dApps, such as Lido and Rocket Pool, within the IoTeX ecosystem.

Liquid staking involves the exchange of staked Ether for tokenized representations, enabling users to participate in DeFi applications while retaining their underlying ETH assets. These tokens can be utilized for a wide range of purposes, including collateral for loans, margin trading, and passive yield generation.

The burgeoning liquid staking sector has witnessed impressive growth in recent times, with Lido's LDO and Rocket Pool's RPL tokens registering notable gains over the past three months. CoinGecko data reveals that LDO and RPL have surged by over 200% during this period.

Currently, staking on the IoTeX blockchain is primarily conducted directly on the network without the need for smart contract support. At the time of writing, IOTX is valued at approximately 2 cents, boasting a market capitalization of $290 million, according to CoinGecko.

The IoTeX blockchain's adoption of Ethereum liquid staking derivatives represents a significant stride in its evolution. By embracing this technology, IoTeX enhances its security and decentralization, while also unlocking new opportunities for developers and users within the vibrant DeFi landscape.