Liquid staking was conceptualized as an alternative to traditional staking. While both allow users to contribute to the security and decentralization of a PoS chain, liquid staking gives asset holders a lot more flexibility.
This is due to the fact that in liquid staking when users lock up their assets to contribute, they receive a receipt token that represents their stake and the rewards it has accrued. This token can then be used freely in any way they choose.
An example of this is ETH and LsETH on Liquid Collective. The longer a holder keeps their LsETH, the more network staking rewards accrue over time as a result. LsETH is a fungible receipt token based on the Ethereum ERC-20 cToken model.
As one of Liquid Collective’s earliest contributors and the protocol’s lead Ethereum Technical Provider, Kiln played a critical role in developing the protocol’s Ethereum infrastructure, ensuring its code security, and providing development resources. We’re glad that our team contributed to design this token, its utility, and all infrastructure behind it.
I started building Liquid Collective a year ago while at Kiln. It quickly became clear that an industry standard for Liquid Staking was needed. Alluvial is born from the collaboration of the various actors in the ecosystem (Figment, Kiln, Coinbase, Kraken) around this standardisation vision.
I joined Alluvial as Co-Founder to help mature this vision by bringing my blockchain expertise. We continue working closely with Kiln as Liquid Collective’s industry-leading technical partner on Ethereum, and their engineering excellence has been key in Liquid Collective's development."
The reason Kiln was one of the first teams approached to help build and run Liquid Collective is that it is one of the very few teams who combines expertise in enterprise-grade Ethereum staking, smart contract development, and in building the off-chain components of an Ethereum-based protocol. Let’s briefly deep dive into these areas of expertise:
LIQUID COLLECTIVE is the secure liquid staking standard: a protocol with multi-chain capabilities, built and run by a collective of leading web3 teams. Developed in collaboration with a diverse group of industry leaders, Liquid Collective is designed to meet the need for an enterprise-grade decentralized liquid staking standard that can be widely adopted, increasing liquidity and composability for the web3 economy.
ALLUVIAL is a software development company supporting the development of the Liquid Collective protocol. Alluvial is focused on the overall growth and maturity of the ecosystem by bringing in more institutional participants to participate in proof of stake blockchains.
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