Written by: Bob Onion
Binance Labs announced its investment in the full-chain liquidity distribution network StakeStone. StakeStone uses STONE (interest-bearing ETH token) to bring native staking income and liquidity to the Layer2 network. This article attempts to comprehensively understand the fundamentals of the StakeStone project through 12 questions.
1. Which track field does the project belong to? What are the projects similar to it?
The StakeStone project belongs to the field of Liquid Staking, especially in the context of decentralized finance (DeFi) and Ethereum Layer 2 solutions. Projects in this space focus on providing liquidity staking services, allowing users to stake their crypto assets (such as Ethereum) into different protocols to earn staking returns while maintaining the liquidity of the asset. Projects similar to StakeStone include Lido, Rocket Pool, etc. These projects all provide liquidity staking services, but each has its own characteristics and mechanisms. StakeStone is unique in its cross-chain liquidity market and OPAP mechanism, which allows it to provide users with a wider range of use cases and revenue opportunities.
2. What problems does the project mainly solve?
The main problem solved by the StakeStone project is how to provide users with optimized liquidity staking income and cross-chain liquidity solutions in a decentralized environment. Specifically, it provides innovative solutions to the following key issues:
Balance of liquidity and returns : Traditional staking often results in a loss of asset liquidity because the pledged assets are locked and cannot be used elsewhere. By providing the concept of Yield-bearing ETH (interest-bearing Ethereum), StakeStone allows users to retain the liquidity of their assets while obtaining staking benefits.
Cross-chain compatibility : As multi-chain ecosystems develop, users need to efficiently move and manage assets between different blockchains. StakeStone supports the seamless transfer of assets and prices between multiple blockchains by establishing a multi-chain liquidity market based on STONE.
Automated yield optimization : Users may lack the expertise or time to continuously optimize their staking strategies. StakeStone's OPAP (Optimizing Portfolio and Allocation Proposal) mechanism automatically adjusts the underlying asset allocation to ensure that users can obtain optimal staking returns.
Transparency and security : In the DeFi field, the transparency and security of the underlying assets are crucial. StakeStone provides complete asset and income transparency through a decentralized architecture and non-custodial services to ensure the safety of user funds.
Simplify integration and adoption : For Layer 2 developers, integrating liquidity staking solutions can bring additional complexity. As a non-rebase OFT (Omnichain Fungible Token) based on LayerZero, STONE can be easily integrated by Layer 2 developers without additional complexity.
3. What is the core function of the project and its main operating principle?
The core function of the StakeStone project is to provide a cross-chain liquid staking protocol, which allows users to participate in staking on Ethereum and other blockchain networks through its native Liquid Staking Token (LST) - STONE, while maintaining assets liquidity and profitability. The following are the main functions and working principles of StakeStone:
Core functions:
Liquidity staking : Users can pledge ETH or other supported assets into StakeStone to obtain staking income. These assets are converted into Yield-bearing ETH or other forms of LST, and these tokens represent the user's pledged assets and corresponding income rights.
Multi-chain compatibility : STONE is built on LayerZero, which means it can be seamlessly transferred between multiple blockchains, providing users with a cross-chain liquidity solution.
Automatic income optimization : Through the OPAP (Optimising Portfolio and Allocation Proposal) mechanism, StakeStone can automatically adjust and optimize the allocation of underlying assets to ensure that users obtain the best staking income.
Non-custodial and transparent : StakeStone's architecture is non-custodial, and all transactions and asset status are publicly verifiable, ensuring users have full control and transparency over their assets.
Easy to integrate : For Layer 2 developers, STONE can be easily integrated into their platform without complex setup or additional technical requirements.
How it works:
Staking and conversion : Users send ETH or other assets to the StakeStone protocol, and these assets are subsequently converted into corresponding LST (such as STONE tokens). These tokens can be used in other DeFi platforms or applications, and users receive staking benefits at the same time. .
OPAP mechanism : OPAP is an innovative feature of StakeStone that allows the protocol to automatically adjust its asset allocation based on market conditions and strategy performance. This means that STONE holders can automatically obtain the optimal staking returns without manual management.
Cross-chain liquidity : STONE, as an OFT based on LayerZero, supports cross-chain liquidity, allowing assets to move freely between different blockchain networks, providing users with a wider range of market opportunities.
Income distribution : Staking income (including transaction fees, governance rewards, etc.) will be distributed to STONE holders regularly. These incomes can be direct token distribution, or they can be reflected in the form of increased STONE value.
Through these functions and principles, StakeStone aims to provide users with an efficient, flexible and revenue-maximizing staking platform, while promoting the development of DeFi and cross-chain liquidity.
4. What technological innovations does the project have? What are the core strengths?
Technological innovation:
Optimizing Portfolio and Allocation Proposal (OPAP) mechanism : This is an innovative feature of StakeStone, which allows automatic optimization of the allocation of underlying assets to ensure that users can obtain optimal staking returns. The OPAP mechanism automatically adjusts asset allocation through algorithms and smart contracts in response to market changes and the performance of different pledge pools.
Non-custodial and transparency : StakeStone provides a completely non-custodial service, and all pledged assets and earnings are managed by smart contracts, ensuring complete transparency of underlying assets and earnings. This design improves security and reduces trust costs.
Cross-chain liquidity : LayerZero-based STONE token supports seamless asset and price transfer across multiple blockchains. This cross-chain compatibility provides developers and users with great flexibility, allowing them to easily move and utilize assets across different blockchain ecosystems.
Multi-chain liquidity market : StakeStone has established a multi-chain liquidity market based on STONE, providing users with more use cases and revenue opportunities. This includes not only staking returns, but also the possibility to participate in other DeFi activities.
core advantages:
Maximizing returns : Through the OPAP mechanism, StakeStone can ensure that users obtain maximum staking returns without requiring users to conduct complex asset management themselves.
User experience : StakeStone's design focuses on user experience. Through simplified operation processes and intuitive interfaces, even DeFi novices can easily participate.
Security and trust : Due to its non-custodial nature and transparency, users can fully trust the system and track their assets and earnings in real time.
Cross-chain capabilities : The cross-chain capabilities of STONE tokens provide users with a wider range of investment opportunities, allowing them to take advantage of different blockchain networks.
Easy integration : For Layer 2 developers, STONE's easy integration lowers the technical threshold, allowing more projects to quickly adopt StakeStone's liquidity staking service.
5. In terms of the overall business model, what are the goals and which customers are served?
Key components of the business model:
Liquidity staking service : StakeStone allows users to pledge crypto assets (such as ETH) to different blockchain networks and obtain corresponding liquidity tokens (such as STONE), which can be traded in the market or used for other purposes. DeFi services.
Income optimization : Through the OPAP mechanism, StakeStone automatically optimizes users' pledged asset allocation to maximize returns. A fee may be charged for this service as one of the project's sources of income.
Cross-chain liquidity : The cross-chain nature of STONE tokens enables StakeStone to provide users with liquidity services in multiple blockchain networks, which may involve cross-chain transaction fees or other related service fees.
Ecosystem construction : StakeStone may cooperate with other DeFi projects to jointly build a more prosperous DeFi ecosystem by providing liquidity, staking services or other financial products.
Target user groups:
Cryptocurrency Investors : Individual investors seeking to earn passive income from staking crypto assets may want to streamline the staking process through StakeStone’s automated services.
DeFi users : Users who are interested in decentralized financial products and may be looking for other income opportunities in addition to traditional lending and liquidity mining.
Layer 2 Developers : Developers who need to integrate liquidity staking services for their Layer 2 solutions can leverage StakeStone's ease of integration to attract and retain users.
Institutional investors : Large investment funds or institutions that may be interested in liquidity staking services that provide stable and optimized returns.
Cross-chain asset users : Users who want to seamlessly transfer assets between different blockchain networks can use STONE's cross-chain features to achieve this goal.
6. What are the main sources of income for the project?
Staking service fee : As a liquid staking protocol, StakeStone may charge a certain percentage of service fees when users pledge their assets. This is a typical revenue source for DeFi platforms, similar to transaction fees or management fees.
Re-pledge income : StakeStone supports a re-pledge mechanism, allowing users to re-pledge their obtained liquidity staking tokens (such as STONE) to obtain additional income. During this process, the project may charge a certain percentage of re-pledge service fees.
Cross-chain liquidity service fee : Since STONE is an OFT based on LayerZero and supports cross-chain liquidity, StakeStone may charge fees for cross-chain asset transfer services.
Partners and integration services : StakeStone may cooperate with other DeFi projects or blockchain applications to provide liquidity support or integration services, thereby obtaining cooperation fees or shares.
Governance and voting rights : In a decentralized autonomous organization (DAO) model, StakeStone token holders may participate in governance decisions, and projects may receive financial support through governance proposals.
Token Economic Model : StakeStone’s token economic model may include token issuance, repurchase, and destruction mechanisms, and the implementation of these mechanisms may indirectly affect the project’s income.
Liquidity mining rewards : If StakeStone implements a liquidity mining program, it may receive a portion of transaction fees or other forms of rewards as revenue from users who provide liquidity.
Technical service fees : StakeStone may charge a certain technical service fee for APIs, SDKs or other technical solutions provided to other projects or developers.
7. How is the distribution of project token used and how to unlock it?
Not announced yet
8. What are the application scenarios of token? Is there a pledge and destruction mechanism?
Not announced yet
9. Who are the founding teams of the project, and what are their backgrounds and resumes?
Not announced yet
10. What are the core investment institutions for project valuation and financing amount?
Not announced yet
11. What is the current number of users, transaction volume, revenue, tvl and other data?
tvl reaches $1.2 billion
12. What is the circulation and trading volume of the token? Which exchanges have it been listed on?
Not announced yet
