Staking

What is liquid staking?

Liquid staking allows users to stake their assets, like Bitcoin, to earn staking rewards while retaining liquidity. Instead of locking up assets, users receive a liquid token (shBTC in StrongHodl) that represents their staked BTC. This liquid token can be used in DeFi applications, enabling users to earn yield while participating across multiple platforms without losing access to their funds.

What is shBTC?

shBTC is a synthetic, yield-bearing token representing staked Bitcoin in the StrongHodl protocol. It is minted 1:1 with BTC and enables holders to earn staking rewards while using their shBTC across DeFi platforms. By holding shBTC, users can maximize the utility of their Bitcoin within the DeFi ecosystem.

• Which network is shBTC minted on?

shBTC is currently minted on Ethereum and Solana, offering users flexibility to access DeFi opportunities on both major blockchain networks. Cross-chain bridging allows users to transfer shBTC between Ethereum and Solana seamlessly.

• What Bitcoin derivatives can I stake into StrongHodl?

StrongHodl supports staking of BTC directly. Additional support for Bitcoin derivatives, such as wrapped Bitcoin (wBTC) and other compatible BTC-backed assets, may be introduced in the future based on community demand and protocol upgrades.

• What happens when I stake BTC into StrongHodl?

When you stake BTC into StrongHodl, it is securely stored with our custodian partner, Fireblocks, and locked into the protocol. In exchange, you receive shBTC, a liquid token that represents your staked BTC and earns yield over time. You can use shBTC to participate in DeFi or hold it to accrue staking rewards.

• What will be the return (yield) of my staked BTC?

The yield on staked BTC in StrongHodl varies based on market conditions and the rewards generated through the protocol. Yield is distributed periodically, and users can track their earnings in real-time through StrongHodl’s analytics dashboard. Returns may also be influenced by the specific role and activity level of the staker within the protocol.

• Is there a minimum amount of BTC required to stake?

Yes, there is a minimum BTC amount required to stake in StrongHodl. The minimum staking amount may vary based on the current role structure within the protocol, with different entry levels for roles like Apostol, Profeta, and Sacerdote. Please check the StrongHodl platform for the latest minimum requirements.

• Where can I use shBTC?

shBTC can be used across a variety of DeFi platforms on Ethereum and Solana. You can participate in lending, borrowing, liquidity provision, and yield farming on popular platforms like Aave, Lido, Jito, and Solayer. Through StrongHodl’s partnerships and API integrations, shBTC holders can explore numerous DeFi opportunities, maximizing the utility and yield of their staked Bitcoin.

What fees are associated with staking BTC into StrongHodl? What are they used for?

StrongHodl charges a protocol fee based on a percentage of the staking rewards earned. This fee is determined by the StrongHodl DAO, which may adjust it in the future through community voting. The current fee structure directs a portion of staking rewards to cover protocol costs and support StrongHodl’s sustainability.

SE TIENE QUE PONER COMO SE CALCULAN LAS FEES

Here’s how the fees are allocated:

1. Node Operators

• Allocation: A significant portion of the protocol fees goes to incentivize node operators who secure and maintain the network.

• Purpose: Node operators play a crucial role in ensuring the stability and security of the protocol. By directing part of the fees to them, StrongHodl ensures that these operators are rewarded for their essential work, which includes processing transactions, validating blocks, and maintaining network integrity.

2. Protocol Treasury

• Allocation: Another portion of the fees is directed to the protocol treasury, managed by the StrongHodl DAO.

• Purpose: The protocol treasury funds are used to support the ongoing development and expansion of StrongHodl. This includes covering costs for security audits, research and development, community incentives, and protocol improvements. Treasury funds may also be used to support governance initiatives and other protocol needs, ensuring sustainable growth and resilience.

3. Insurance Fund (Future Implementation)

• Allocation: In the future, a portion of fees may be allocated to an insurance fund.

• Purpose: This insurance fund will help cover potential losses in case of security incidents or unforeseen issues. It is intended to provide an added layer of protection for users, enhancing trust and security within the protocol.

The allocation of fees is determined by community governance through the StrongHodl DAO, allowing token holders to vote on fee rates and fund distribution. This transparent, community-driven approach ensures that protocol fees are aligned with user interests and protocol sustainability.