Introducing stEVER and the new era of liquid staking on EVER DAO
In this article, we are going to take a look at stEVER (staked EVER) tokens, one of the key features set to further expand the possibilities of the Everscale ecosystem.
Why are stEVER tokens being introduced?
Currently on EVER DAO, when you stake your assets to vote you do so with EVER and wEVER tokens. While the current modus operandi has helped EVER DAO and the Everscale network grow and enabled users to enjoy some of the more advantageous APR rates in DeFi, now is not the time to rest on laurels.
EVER DAO is entering into a new era, defined by user autonomy, transparency and the most advanced technology in DeFi. The retooling of EVER DAO will be a watershed moment, as it will usher in with it a whole new set of features that will further establish Everscale as one of DeFi’s lodestar networks.
With the launch of stEVER tokens, users will no longer have to choose between staking their tokens and engaging in other DeFi activities like farming, trading or participating in governance protocols. And the users who do stake will no longer have to run through the hoops of depositing and withdrawing their tokens at certain times in order to ensure that they are making the most profit. stEVER is a token that by its nature is designed to always grow in relation to EVER.
What are stEVER tokens?
stEVER is a Tip3.1 token in the same vein as other Everscale assets, only with an enhanced functionality on the EVER DAO platform. The launch of stEVER tokens will introduce liquid staking to EVER DAO. What liquid staking means in layman’s terms is essentially staking without restrictions. Anyone who has staked their assets on a DeFi platform is familiar with the restrictions that come with the activity. You have to lock your tokens in for a set amount of time and during that time you cannot touch them.
While this is all well and good, it should really be thought of as the beta version of staking. It is analogous to depositing your money in a traditional bank, albeit with much, much higher returns. But it is only just scratching the surface of what is capable in DeFi.
Liquid staking turns all of that on its head. With stEVER tokens, users can stake their assets while still having full autonomy over them. That means that you can farm your tokens, trade them and use them to vote in the platform’s DAO protocols.
Additional stEVER mechanics
Beyond that, stEVER also changes the essential dynamics behind staking on the platform. Normally when you stake with depools, you do so with an eye on making the most off of a pool’s APR. This can get tricky given that APRs change based on the amount of liquidity and the number of users also staking. Rates fluctuate every day, and depending on how long you lock your tokens in for, you could end up getting much less back than you originally imagined.
The launch of stEVER tokens does much to ameliorate that issue by virtue of a balancer mechanism built into the platform that will ensure that you are always getting the APR you signed up for. And the kicker is that it requires no effort on your part. All you have to do is stake your EVER tokens in return for stEVER and the rest will be taken care of for you. A staking interface has been built into the EVER Wallet for desktop.
stEVER mechanics, once they are fully released, will come to replace depools completely. Instead of having to go through all the steps to stake your tokens manually, with stEVER tokens, you will be able to enjoy a much simpler process that will ensure that you are getting the most out of staking. Because each stEVER token contract is a ratio between EVER and stEVER, the token has been designed to constantly increase in value relative to EVER. As time goes on, more EVER tokens will be added to the contract while the number of stEVER tokens will stay the same.
Details on EVER DAO upgrade and stEVER testing period
The complete retooling of the EVER DAO platform is in the works. While there is no concrete date yet for the unveiling of the new version of the platform, you can expect it soon. The rollout of stEVER is a crucial step towards the total platform upgrade. As such, and given the scale of stEVER functionality, the tokens will be released first in a beta testing mode. During the testing period, the use of stEVER tokens will be completely free, but once the testing period concludes there will be a small fee charged for using stEVER, deducted from the rewards accumulated from staking.
In addition, stEVER tokens have validators that ensure that all operations run smoothly. The full details on how these validators will work with stEVER will be published here soon.
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