CoinDCX to launch liquefiable ETH tokens for staking against ETH2
Crypto exchange firm CoinDCX on Wednesday said it will issue 1:1 Ethereum tokens to all Ethereum staked holders as well as those who have staked and may stake in the future. The token will be issued in the last week of January 2021.
The company has teamed up with Staked, which provides non-custodial staking services for institutions and is the leading independent validator for Ethereum 2.0. It is working with CoinDCX to support Ethereum 2.0 staking.
CoinDCX recently launched an ETH staking product where its users can stake ETH for as low as 0.1 ETH. For this service, users are required to lock their ETH for staking. CoinDCX is launching the token in response to the increase in demand from users on ETH2 staking
Staking is just like trading cryptocurrencies, but here the investor stakes (buy and hold) some coins to get added to the mining pool.
The token will be liquid and will be tradeable on CoinDCX markets. This will allow traders and investors to enter and exit ETH 2 staking seamlessly.
“Staking is slated to improve the efficiency and scalability of the Blockchain technology. But the assets locked in staking can cause a liquidity deficit in Cryptocurrency markets. With this token, CoinDCX aims to solve that problem for Ethereum. Staked ETH via CoinDCX will be highly liquid,” Neeraj Khandelwal, co-founder of CoinDCX said in a statement.
The backed token will be pegged to Ethereum price. According to CoinDCX, this will benefit Ethereum investors, both short or long term. On one hand, investors can earn staking rewards --15-20% as per the current ETH2 blockchain staking rewards -- and on the other, they can also trade in CoinDCX markets. Also, once the 2000 ETH target is met, the token will function as a utility token across the CoinDCX ecosystem.
Token holders will receive benefits on trading fees, discounts, lucrative airdrops, and more which will be mentioned in a whitepaper by CoinDCX, slated to be released on January 7th, 2021. CoinDCX will be also providing a loan facility. Users can access stablecoin backed loans, and can borrow collateral for Margin trades on CoinDCX.