One of India’s largest cryptocurrency exchanges, and the brand behind the popular Mood of the Nation survey, CoinDCX is all set to launch liquid ETH-backed tokens for its users. It will be a 1:1 Ethereum token and will be issued to all Ethereum staked holders who have staked or may stake in the future. The token issue is expected to take place in the last week of January 2021. The token will also be liquid and tradeable on CoinDCX markets.
What are the Advantages of Staking ETH on CoinDCX?
A recent staking product offered by CoinDCX had allowed users to stake ETH for as low as 0.1 ETH with great ease. All that needed to be done was to lock one’s holdings for staking. An increased demand in staking from users was observed by CoinDCX. Now, it is all set to launch the liquid ETH-backed token.
Since the token will be liquid and tradeable on all CoinDCX markets, it would also allow investors and traders seamless entry into and exit from ETH 2.0 staking. Moreover, being an ETH-backed token, it will be pegged to the price of Ethereum, thereby benefiting both short-term and long-term Ethereum investors.
Therefore, not only would the investors be able to earn staking rewards amounting to approximately 15-20% as per the current staking rewards, but they will also be able to trade in the CoinDCX markets.
When the 2000 staked ETH target ($1 million worth of ETH) will be completed, the token holders will receive a multitude of token benefits. It will then function as a utility token across the CoinDCX ecosystem.
Other benefits for token holders include benefits on trading fees, lucrative airdrops, discounts, etc. Further clarity regarding these can be gained when the whitepaper is released.
Staked, a U.S.-based non-custodial staking services provider is partnering with the exchange to support ETH 2.0 staking.
A Massive Step
According to Neeraj Khandelwal, the co-founder of CoinDCX:
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.
Perhaps the most interesting aspect of the token is that in addition to being ETH-backed, it also happens to be community-backed and is powered by the most-awaited technological transformation on the Ethereum blockchain. Therefore, the expectation is that the ecosystem thus created will allow its community to reap the benefits of Ethereum 2.0. CoinDCX expects to put out a whitepaper on this on January 7, 2021.
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