Tezos Includes Liquid Staking Through stXTZ Debut on Etherlink Platform
The introduction of stXTZ on the EVM-compatible Layer 2 blockchain Etherlink significantly expands DeFi opportunities within the Tezos ecosystem [1][2][3]. This innovative liquid staking solution allows users to stake their XTZ tokens while maintaining full liquidity to participate actively in DeFi protocols on both Tezos Layer 1 and Etherlink Layer 2.
stXTZ works by locking Tezos staking tokens on Layer 1 and minting ERC-20 compliant proxy tokens on Etherlink’s Layer 2. This combination enables users to earn around 90% of staking rewards while trading, lending, or using stXTZ as collateral in DeFi applications like Superlend and Uniswap V3 [3].
Key benefits include bridging Layer 1 staking and Layer 2 DeFi, enhancing capital efficiency, and catalyzing DeFi growth in the Tezos ecosystem. Etherlink’s secure bridging and Chainlink-compatible price oracles provide real-time price feeds, ensuring smooth interaction between stXTZ's staking pool on Tezos L1 and DeFi platforms on Etherlink L2 [1][4]. Users can maximize asset utility by simultaneously earning staking rewards and engaging in high-performance DeFi with reduced costs and network delays on Etherlink [1][3].
stXTZ prepares the ecosystem for a "next era of DeFi," encouraging more liquidity and innovation not only on Tezos L1 but also on current and future Layer 2 solutions, supporting broader scalability and interoperability goals for Tezos [1][2][5].
Developed by contributors from Ubinetic AG, specialists in developing synthetic assets, stXTZ is set to unlock DeFi yield opportunities while securing the network, opening a new frontier for DeFi scalability and composability within Tezos [1][3][5]. Holders of the staked token retain 90% of the staking rewards, while 10% goes to a reward-collecting contract overseen by the DAO [4].
In essence, stXTZ turns the previously illiquid staked XTZ into versatile, transferable tokens, enabling users to engage with DeFi applications on the Tezos Smart Rollup-powered Etherlink, while also contributing to the security of Tezos Layer 1 and earning potential staking rewards [1][3][5]. With the liquid staking market worldwide having surpassed $45 billion, driven by financial instruments like stETH from Lido Finance, stXTZ is poised to make a significant impact within the Tezos ecosystem.
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