Novel Liquid

Staking

Built on

Novel Liquid Staking

Built on

Hatom has developed a Liquid Staking solution built on the MultiversX Blockchain that allows users to earn staking rewards without locking up their assets. Users can deposit their EGLD and receive staked EGLD (sEGLD) in return. Liquid Staking is a feature designed to provide users access to the value of their staked EGLD, opening the doors to multiple DeFi opportunities.

sEGLD is a reward-bearing token you receive when you stake your EGLD on the Hatom Liquid Staking Platform. It is a representation of the user’s original EGLD deposit plus any staking rewards generated through the Liquid Staking module. The amount of sEGLD tokens you receive remains the same, while its redemption ratio increases daily following the growth of the staking rewards.

HsEGLD is a boosted version of sEGLD that allows users to further increase their rewards by supplying their sEGLD in Hatom Lending Protocol. Similar to sEGLD, the amount of HsEGLD you receive in your wallet remains constant, but its redemption ratio increases daily thanks to a combination of the staking rewards and interest earned through the Lending Protocol supply rewards.

Users can stake their EGLD through Hatom Liquid Staking and receive sEGLD, a reward-bearing token that increases in value as staking rewards grow. It can be used across multiple DeFi Apps such as Hatom Lending Protocol, AshSwap, and XOXNO, and at any point, users can redeem their sEGLD through Hatom and receive their original EGLD plus the accumulated rewards.

To unstake your sEGLD, you must go to the Hatom Liquid Staking App. After initiating your transaction, you will receive an NFT that represents your Unstake Request, and there will be a 10-day cooldown period, similar to traditional staking, before you are able to claim your EGLD. After the cooldown period has passed, you will be able to claim your EGLD in exchange for your NFT under the Active Request section.

To claim your rewards, simply unstake all of your sEGLD and HsEGLD tokens or sell them on AshSwap. Your Total Staked balance indicates the current value of EGLD that you will receive when you unstake these tokens. To calculate your lifetime earnings, subtract this EGLD amount from the amount of EGLD you initially invested.

You can also view an estimate of your annual earnings by checking the Dashboard, which displays the current APY for staking with Hatom.

Additionally, by activating HsEGLD as collateral, you may be eligible for extra rewards. To claim these rewards, click on the Rewards tab located next to the Connect Wallet tab

If you want to unstake your sEGLD or HsEGLD tokens from Hatom, you should be aware that there will be a 10-epoch cooling period (which lasts approximately 10 days), just as there would be if you were self-staking. If you need to bypass this cooldown period, we recommend selling the tokens on AshSwap. Additionally, Hatom requires a minimum of 1 EGLD worth of sEGLD or HsEGLD to be staked or unstaked, but AshSwap allows for smaller amounts to be bought and sold.

Liquid staking offers various benefits that include liquidity, flexibility, risk management, diversification, and yield optimization. By engaging in liquid staking, you can receive staked tokens in a liquid form that can be utilized for other DeFi strategies, all while earning staking rewards. Unlike traditional staking, you have the ability to withdraw your staked tokens at any time without having to wait for a specific period. This means that you can access your funds instantly and in full.

Furthermore, liquid staking allows you to earn rewards from multiple protocols. When you stake your EGLD through liquid staking, you are staking with various node operators, which diversifies your staking portfolio and increases network decentralization. Additionally, you can earn higher returns by accessing the auto-compounding function. Liquid staking also offers opportunities to access more yields through the Lending App, creating LPs on AshSwap, and employ leverage staking strategies. The possibilities are endless.

The Hatom liquid staking solution is a joint venture with the MultiversX team, and it offers several security features, including:

   • Multiple audits and open-source code, with continuous review of all code to ensure its security.
   • Committee of elected, best-in-class validators.
   • Use of non-custodial staking service: the liquid staking smart contract does not hold EGLD; instead, EGLD is kept on nodes.
   • Use of a DAO for governance decisions and to manage the protocol's updates.

Usually when staking EGLD you choose only one validator. In the case of Hatom you stake across many validators, reducing your staking risk.

The HTM token is an ESDT token that provides its holders with governance rights in the Hatom DAO. This DAO oversees a group of DeFi protocols, determines crucial parameters such as fees, and performs protocol upgrades to maintain efficiency and stability. Through the possession of HTM tokens, users are able to vote and influence decisions within the Hatom Ecosystem DAO, with more HTM tokens translating to greater decision-making power.

Staking HTM Tokens in the Booster will boost your sEGLD position that has been converted into HsEGLD and set as collateral in the lending protocol. To reach the Optimal Boost, you must stake HTM Tokens equal to 10% of your supply position's value. If you've supplied other assets in the lending protocol and they're also set as collateral, you'll need to stake HTM Tokens equivalent to 10% of the total value of all your collaterals within the lending protocol.