Coinbase Cloud recently announced a partnership with Acala Foundation. The collaboration will promote liquid staking, with KSM being their first target on Karura.
The process allows token holders to stake tokens while integrating them into DeFi without subjecting token holders to any unbonding period. Thus, the procedure enables more opportunities to boost the crypto economy.
As one of the most popular DEXs in the market, the popularity of the Coinbase exchange is evident. The platform has started several initiatives to assist the global adoption of cryptocurrencies. Click here to know more in detail about the best crypto exchange in Indonesia.
Its latest venture with Acala Foundation will also add more users to the Polkadot DeFi infrastructure. Moreover, the partnership will unleash more value for token owners while onboarding more customers into Web3.
Standard PoS (proof-of-stake) networks subject users to unbonding periods during the staking process. It restricts them from withdrawing the tokens before the set time. Depending on the protocol, the restriction period can vary vastly. Thus, even if users earn rewards on the tokens, they cannot stake them in other apps.
Liquid Staking is different, as the process enables users to earn staking and other accrued rewards in dApps. After a user stakes tokens, they will get a representative token in return, for example, an LDOT for DOT. The L-Tokens represent both the staking yield and the original staked asset.
Since these L-Tokens can be traded on any Kusama or Polkadot networks, their use-cases are immense. This way, users can make the utmost use of their tokens without being subjugated to restrictive periods. While Liquid Staking was released in 2021 for Karura, Coinbase is promoting its adoption across the globe with the latest partnership.
Given the stature Coinbase holds, the staking process will soon gain mainstream attention.