Overcoming Barriers: The Future of Liquid Staking on Solana
How Xandeum’s New Liquid Staking Pool is Set to Revolutionize the Staking Landscape
Introduction: Web3 - Hype or Reality?
The Solana blockchain, known for its high-speed transactions, faces significant challenges with its storage model. Anatoly Yakovenko, the founder of Solana, recently highlighted these issues, referring to the concept of “State Rent,” which essentially means storage costs on the Solana chain.
What’s Holding People Back from Liquid Staking?
A recent poll on our social accounts revealed several insights into the reservations users have about liquid staking:
1. High Fees: Only 18% of respondents believe fees are too high. This misconception arises because liquid staking allows sharing rewards that are not possible with native staking.
2. Perceived Risks: Some participants view liquid staking as risky, which can deter involvement.
3. Complexity: The primary concern, complexity, indicates that users want a straightforward and user-friendly process.
4. Diversification: Interestingly, only a few cited the need for better diversification. Liquid staking typically involves diversifying stakes across multiple validators, enhancing decentralization and security.
What Do Users Want from Liquid Staking?
The poll also asked what users hope to gain from liquid staking. Here are the key takeaways:
1. Earning Priority Fees: A significant 56% of respondents are interested in earning priority fees. Unlike native staking, liquid staking pools can distribute these fees. This is particularly attractive as Solana processes a high volume of transactions, making priority fees a lucrative opportunity.
2. Instant Stake and Unstake: Liquid staking tokens provide the flexibility to stake and unstake instantly, bypassing the warm-up and cool-down periods inherent to native staking.
3. Increased Decentralization: Users appreciate the decentralization that comes with delegating to a curated set of high-yield validators.
Introducing Xandeum’s Liquid Staking Pool
At Xandeum, we are launching a Liquid Staking Pool on Solana that addresses these concerns and meets the community’s needs:
✅ Priority Fees: Our pool will be the first to share priority fees automatically with stakers.
✅ Ease of Use: We are committed to making liquid staking as simple and user-friendly as possible.
✅ Decentralization: Our pool will ensure stakes are diversified across numerous validators.
Conclusion
Understanding the dynamics of liquid staking on Solana reveals both challenges and opportunities for stakeholders. Our poll highlighted concerns such as perceived complexity and risk, while also underscoring the desire for user-friendly solutions and opportunities like earning priority fees.
At Xandeum, we are committed to addressing these concerns with our upcoming Liquid Staking Pool. By simplifying the staking process and enabling the sharing of priority fees, we aim to empower our community to participate more actively in Solana’s thriving ecosystem.
As we move forward, we invite you to join us on this journey of innovation and exploration in liquid staking. Stay tuned for more updates, insights, and opportunities to engage with us.
Xandeum's Approach
At Xandeum, we are developing innovative solutions to tackle these storage challenges. Our approach involves creating a second layer of storage, the Xandeum buckets, which are managed by pNodes (provider nodes) under the supervision of validators.
This architecture allows for scalable and efficient storage, integrated seamlessly with Solana’s ecosystem. By providing developers with new primitives for accessing this additional storage layer, we aim to enable the creation of truly scalable Web3 applications.
Conclusion
The storage model on the Solana chain is currently flawed, with significant inefficiencies and limitations. To achieve the potential of Web3 applications, a scalable storage solution is necessary.
At Xandeum, we are committed to solving these problems and providing the tools needed for a scalable and efficient blockchain ecosystem.
