Indian cryptocurrency exchange CoinDCX has announced the launch of its new token, Liqueth (LQTH), a bond-backed token based on a Proof of Stake reserve protocol.
CoinDCX said that LQTH will be generated and transferred to stakers in a 1:1 ratio for every ETH staked through its platform. LQTH is an ERC-20 token and will only be minted once the ETH locked in CoinDCX is sent for validator creation. CoinDCX will cover all validator operating expenses, and 100 percent of the on-chain staking rewards will be distributed to users in the form of ETH. CoinDCX has opened a market to trade LQTH tokens, allowing stakers to liquidate their holdings at any time and other traders to buy and hold LQTHLQTH will be converted 1:1 to ETH once the Beacon Chain Withdrawal contracts are live, hence buying LQTH is similar to buying ETH but with the additional advantage of daily staking rewards in ETH (Annual Estimate Rewards: 5-20%).
Sumit Gupta, CEO and Co-founder of CoinDCX, said that as a pioneer in the Indian cryptocurrency space, CoinDCX fully supports the ETH 2.0 upgrade, adding that they want to make staking very simple and accessible for their users, which is why they are providing an ETH staking facility to anyone who holds at least 0.1 ETH in their CoinDCX wallet.
“Ultimately, we believe that this will allow our users to unlock the full earning potential of digital assets—by more actively participating in the token economy and the DeFi space, as we move further and further away from cryptocurrency’s role as a speculative investment,” Gupta said.
The Ethereum network is one of the largest and most widely used public, open-source blockchain networks in the world that was built to allow developers to create and deploy decentralised applications using smart contracts. ETH 2.0 is the long-awaited upgrade to the Ethereum network that promises to improve the network’s scalability, speed, efficiency, and sustainability without sacrificing security and decentralisation. The minimum amount of ETH required to stake directly on the ETH network to earn rewards is 32 ETH.
“The current deposit contract for ETH 2.0 works only one way—users can only deposit ETH but will not be able to withdraw it until ETH 2.0 is completely launched, which might take a few years,” said Neeraj Khandelwal, Co-founder of CoinDCX. “At CoinDCX, we aim to lower the barriers to staking by providing a highly liquid, smart-contract-driven solution. Since the announcement of ETH 2.0, while many aspire to participate in staking, only few hold the minimum required 32 ETH or possess adequate knowledge for setting up the system. Liqueth is designed to propel CoinDCX’s community’s contributions towards the ETH 2.0 upgrade in return for the myriad of benefits that holders and users of LQTH will receive in the future.”
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