Staking vs Liquid Staking

As a Unity Wallet user you will be familiar with the concept of staking, whereby you leverage your crypto assets to help perform blockchain validations in exchange for rewards. We currently provide the ability to stake three different asset classes for this purpose. However, this involves ‘locking-in’ your crypto for a predetermined period of time and you lose some flexibility in the process.

Liquid staking, by contrast, enhances your flexibility by issuing synthetic tokens against staked assets. Unlike traditional staking, users can still trade and use their staked assets.

Thanks to our recent WalletConnect integration you can now access the world of dApps (decentralized applications). This means you can connect liquid staking applications to your Unity Wallet with a single tap and dive-in to the world of liquid staking.

This article is really a primer on the many options available to you via WalletConnect if you want to leverage your assets to get some passive rewards on the boil (or simmer depending on the asset).

WalletConnect & Liquid Staking

The integration of WalletConnect with liquid staking platforms is a game-changer. It simplifies the process of connecting your wallet to these platforms, enabling you to easily participate in staking pools across various blockchains. This not only enhances the user experience but also democratizes access to staking rewards, previously the domain of the technically savvy or the well-resourced.

Several platforms have already begun leveraging WalletConnect to facilitate liquid staking, offering users a straightforward and secure way to earn rewards. Through WalletConnect, users can explore and engage with a multitude of staking opportunities without the hassle of managing multiple wallets or navigating complex security protocols. This ease of access, combined with the security and interoperability WalletConnect offers, paves the way for a more inclusive and efficient DeFi ecosystem.

Two such platforms are AAVE and Stader — both robust liquid staking platforms.

What is AAVE?

AAVE is a decentralized finance (DeFi) protocol that enables users to liquid stake, lend and borrow cryptocurrencies such as Ethereum, Avalanche, Optimism, Gnosis, Polygon, Arbitrum, Base and Aave Arc. As a lending platform, AAVE allows users to earn interest on their digital assets by depositing them into a pool, from which borrowers can then take loans. These lending and borrowing services are managed through smart contracts, removing the need for a traditional financial intermediary.

AAVE is unique for its introduction of uncollateralized loans, known as "flash loans," which are designed to be taken out and repaid within a single transaction block on the Ethereum blockchain. This feature has become particularly popular among developers and arbitrageurs who leverage it for profit-making strategies without the need for upfront capital.

The protocol uses its native token, AAVE, for governance, allowing token holders to vote on decisions such as protocol upgrades and changes in parameters. The AAVE token also offers various benefits within the platform, such as reduced fees and enhanced borrowing capacities.

To connect your wallet to AAVE, is simple. From your Unity Wallet, simply tap the WalletConnect icon on the top right of the homescreen. From there simply scan the QR code presented at AAVE upon clicking “Launch App” and then, “Connect wallet”. Remember to select WalletConnect to get the correct QR code. Then simply tap the green “Connect” button back in Unity Wallet.

Stader

Stader is a non-custodial, smart contract-powered staking platform. It simplifies the discovery and use of staking solutions. As a crucial staking middleware infrastructure, it serves various Proof-of-Stake (PoS) networks. This includes retail cryptocurrency users, exchanges, and custodians.

Stader currently supports liquid staking across Ethereum, Polygon, Hedera, Binance and Fantom.

To connect to Stader via WalletConnect, simply tap the appropriate link below:

Ethereum: https://www.staderlabs.com/eth/stake

Polygon: https://www.staderlabs.com/polygon/stake/

Binance: https://www.staderlabs.com/bnb/stake

Connect via the “Connect wallet” button on the relevant page and then scan the WalletConnect QR code via your wallet. In Unity Wallet, simply tap the WalletConnect icon on the top right of the homescreen.

Wait! Wait! There’s more

Here are some of the other liquid staking dApps we think are worth a look*:

• Rocket Pool: liquid staking protocol for Ethereum

• Marinade Finance: Solana stake automation platform

• Yield Yak: autocompounding pools for Avalanche

• Socean: liquid staking for Solana

• JPool: liquid staking for Solana

• Lido: liquid staking for Ethereum and Polygon

• Stakewise: liquid staking for Ethereum

• Stake DAO: non-custodial liquid staking platform focused on governance tokens

• Ankr: liquid staking for Ethereum, Polygon, Binance and Avalanche

As with all these apps, just locate the connect wallet or stake now buttons to initiate your WalletConnect connection.

To discover more liquid staking dApps, simply copy and paste "liquid staking dapps” into your favorite search engine.

Remember this doesn’t mean that we fully endorse these sites but that the links provided are official and the product offering is real.

REMEMBER: ABD (Always Be Diligent)

Despite its many advantages, the integration of WalletConnect with liquid staking is not without challenges. Security remains a paramount concern, with the integrity of smart contracts and the reliability of platforms being crucial for protecting users' assets. Additionally, as more users flock to these platforms, scalability could become an issue, necessitating further innovation to accommodate growing demand. The regulatory landscape also presents a consideration, as compliance and legal frameworks around liquid staking continue to evolve.

Always quadruple check that the website and publisher name match-up as there are plenty of traps being set for eager users. However smart you might be, those seeking to rob you of your assets are way smarter and more devious. Never forget it.

Conclusion

WalletConnect is not just a protocol; it's a catalyst for change in the DeFi space, enabling a more secure, efficient, and user-friendly experience for participants across the globe. Its impact on liquid staking is profound, offering investors access to many liquid staking apps that provide the flexibility to earn rewards without sacrificing liquidity. As we venture further into this decentralized future, technologies like WalletConnect will be pivotal in shaping an ecosystem where financial opportunities are boundless and accessible to all. The future is bright, and it's decentralized.