Introducing Liquid Staking of OKT on OKC

4 min readDec 20, 2022

OKC’s Liquid Staking protocol of OKT is now live!

Liquid Staking allows users to access and deploy their staked assets, namely OKT. Users can now swap OKT for stOKT (staked OKT) and earn staking rewards while putting stOKT to use just like one would with OKT.

Staking your crypto assets would usually come with (1) a high minimum number of tokens required to qualify for staking rewards, and (2) a lock-up period, making your assets illiquid. Liquid staking solves both of these issues, as no minimum number of tokens is required, and it also allows users to deploy their staked tokens on other protocols.

Currently, while staking your crypto assets, users require a particular account of tokens to stake; these tokens are locked for a certain time and hence, illiquid. Liquid staking solves the problems of liquidity loss and inefficiency of asset utilization. stOKT allows OKT holders to maximize the utility of OKT by providing access to DeFi protocols while allowing holders to earn the same staking rewards simultaneously.

How do you liquid stake on OKC?

You may access the <>Liquid Staking protocol<> to stake any number of OKT tokens on the protocol. When OKT tokens are staked, you will receive stOKT (staked OKT) tokens, and the value of your stOKT will change relative to OKT as staking rewards are earned.

What is stOKT?

stOKT is a KIP20 token representing staked OKT. Any staking rewards accumulated will be compounded automatically in the value of stOKT. As it represents the initial number of OKTs staked, the number of stOKTs one would have received does not change over time, even with the accumulation of staking rewards. The value of stOKT, however, changes over time, consisting of the accumulated rewards and initial staked OKTs. A user will then be able to claim the initial staked OKT and compounded staking rewards by unstaking and claiming OKT through the protocol.

This also means that over time, the value of 1 stOKT will not be equivalent to 1 OKT. In short, holding 1 stOKT represents a share of the total staked and staking rewards pool of OKT.

stOKT contract address: 0x97b05e6c5026d5480c4b6576a8699866eb58003b

What can you do with stOKT?

Earn staking rewards up to 40% APR.
Earn transaction fees by providing liquidity to OKC Swap pools (e.g., OKT-stOKT pool). For each trade, a 0.3% fee is paid to LP token holders. You can check the data at https://www.okx.com/okc/swap/info.
stOKT will be supported by various DeFi applications across the OKC network.

How are we generating 40% APR?

In short, our liquid staking rewards are a redistribution of the validators’ block rewards.

OKC is based on DPoS + Tendermint consensus, which means each staked OKT can vote for multiple validators nodes; all the validator nodes should send a portion of their mining reward proportional to the votes they received. Compared to the PoS consensus, where people can only vote for one validator, DPoS allows dozens of votes for one share, resulting in higher staking rewards.

Is 40% APR sustainable?

The liquid staking rewards are generated as a redistribution of validators’ block rewards, so as long as the chain runs, rewards can be paid out. As with most yield-generating products, our rewards are subjected to fluctuation anywhere from 10% to 40% APR depending on a number of factors such as the total number of votes and commission rate of nodes.

How does it work?

On Liquid Staking Protocol, stake OKT to receive stOKT in your wallet. Your staked OKT will be delegated to validators for staking rewards that will be automatically accumulated and compounded in the staking pool.
On OKC Swap, provide liquidity to stOKT pools such as OKT-stOKT, and receive transaction fees and an LP token that represents your liquidity pool share in deployed pools.
When you want to receive your staking rewards and its initial staked OKTs, you may return to the Liquid Staking Protocol to unstake and claim your OKT.

In addition, to celebrate the Liquid Staking launch on OKC, we’re giving away a total of $3000 in OKT for you to share! Learn how to use OKC Liquid Staking and take a short quiz to share the prize pool.

Campaign period:

Dec 20, 2022, 11:00 am — Dec 31, 2022, 11:00 am (UTC)

How to participate:

Watch OKC Liquid Staking Tutorial on Youtube
Try OKC Liquid Staking and stake any amount of OKT during the campaign period
Complete the short quiz

Rewards:

200 lucky users who finish the tasks will share a $2,000 OKT prize pool
Users who get all quiz results correct are eligible to enter an additional $1,000 OKT prize pool

Reward distribution:

Rewards will be issued within 15 working days after the campaign ends. Once rewards are distributed, we will announce in OKC TG Community. Stay tuned!

Join here: https://giv.gg/qdKo3T

About OKC

OKC (OKX Chain) is an EVM-compatible L1 built on Cosmos with a focus on true interoperability (IBC) and maximized performance. At high scalability, developers can build and scale with low gas fees. The OKC ecosystem and infrastructure, including the all-in-one multi-chain Web3 interface, enables a seamless experience for both developers and users.

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