Liquid staking is a mechanism that allows users to retain the liquidity of their staked tokens. As traditional staking implies that the tokens are locked up for a period, liquid staking gives users a tokenized representation of their staked assets that they can use for various DeFi activities while still earning their staking rewards. This way, the staked tokens retain their liquidity, hence the name.
This article will walk you through the process of using the liquid staking platform Lair Finance built on Kaia Chain to put its native KAIA token in liquid staking.
Kaia Chain in a Nutshell
Kaia Chain came about as a merger of Klaytn by Kakao and Finschia by LINE. Its goal is to boost the advantages of both platforms and produce a fast, interoperable, and highly scalable blockchain ecosystem catering to the specific needs of Web3 apps in Asia.
The resulting blockchain offers near-instant transaction finality with one-second block times, which plays a significant role as both developers are known for their major part in Asian social media services, where real-time applications are especially important. Kaia Chain is, therefore, aimed at seamless integration with LINE and Kakaotalk, social media apps by LINE and Kakao used collectively by over 250 million users. The merged blockchain also has EVM compatibility and account abstraction.
Kaia Chain continues to use the Klaytn mainnet, so the existing users of Klaytn and Finschia can migrate seamlessly to the new ecosystem.
Lair Finance: Key Points
Lair Finance is a decentralized liquid staking provider on the Kaia Chain. As was mentioned above, it helps user retain the liquidity of their staked KAIA tokens by providing their representation called stKAIA. It earns yield over time and is transferable.
Lair Finance’s unique feature is its integration with KIP-163 (CnStakingV3), which enables decentralized delegation. In particular, users can delegate KAIA to an extended set of validators (called GCs in the ecosystem) in a completely decentralized fashion. Lair Finance has its focus on DAO governance, enhancing validator infrastructure, and ensuring maximum decentralization.
How to Put KAIA into Liquid Staking
Liquid staking KAIA is fairly simple and takes only a few easy steps. It is further simplified by Lair Finance’s intuitive, user-friendly interface.
Step 1
Visit the official website.
Step 2
Once there, click on Connect Wallet and follow the onscreen instructions to connect your wallet properly.
Step 3
Sign in by connecting your wallet and signing a message in the Reward tab or Farm tab. This step is necessary to authenticate your wallet and access staking features.
Step 4
Specify the amount you want to stake.
Step 5
Select the GC member with whom you’d like to stake your KAIA. To stake with Everstake, choose Jump Crypto - Everstake.
Step 6
Click Stake, review the transaction, and confirm it in your wallet.
Step 7
Once the transaction is confirmed, click Add stKAIA To MyWallet and confirm the action in your wallet.
Congratulations! The staking process is complete now, and you can track your delegation in the dashboard.
Now that you have stKAIA, you can just hold it for additional rewards, provide liquidity in the Capybara DEX pool, or stake your LS tokens on Capybara Perp for a revenue share.
How to Unstake stKAIA
Unstaking your stKAIA is also a very easy and intuitive process.
Step 1
Go to the Unstake tab on Lair Finance’s website.
Specify how much you want to unstake and choose your preferred method. Note that currently, only Use Lair is available, with the opportunity to use third-party exchanges coming later on.
Step 2
To unstake the amount of tokens you specified, hit Unstake. Note that there is a waiting period of 7 days before the funds become available.
Step 3
Finally, confirm the transaction.
Step 4
You can monitor the status of your unstaking process in the Claim tab.
Final Thoughts
Kaia Chain has enormous potential for the crypto markets in East Asia and beyond, as it seamlessly integrates with some of the region’s most popular social media platforms. With a growing audience of at least 250 million users, it makes blockchain tech more accessible to the broader public.
Lair Finance is an important part of this vast ecosystem. It enables users to enhance their interaction with DeFi while supporting Kaia Chain’s proper operation and security. It is likely that its role in the Kaia Chain will only increase over time.
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