Liquid Staking
Liquid staking gives flexibility to users to stake their native tokens ( $DYM ) without the need to lock them up for a specific period of time. This is accomplished by providing users with a liquid token in return ( $nDYM ) for their staked native tokens.
Benefits of liquid staking:
Liquidity and Flexibility: Liquid staking allows token holders to earn staking rewards and participate in security while enabling the flexibility to trade or use their staked assets which eliminates the dilemma of giving up on APR or using their LST throughout DeFi ecosystem.
Improved Network Security: Liquid staking incentivizes token holders to stake their assets, which fosters the overall network security.
Capital Efficiency: Liquid staking is enabling capital-efficieny for users, chain itself and DeFi protocols, as they don't compete with native APR; rather adding a layer on top to strengthen the ecosystem.
Planned future use cases for nDYM
Incentivized AMM Liquidity on Dymension Portal - nDYM/DYM
Lending/Borrowing
Staking Derivatives
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