Introducing Trusted Node — Staking Rewards Made Easy. Base Capital Untouched.
Trusted Node is changing the game for liquid staking and yield generation. Before we dive into how our platform accomplishes this, let’s go over some terminology.
Nodes are distributed across a network to carry out a variety of tasks, like verifying transactions. Within crypto and DeFi, validator nodes may be the most important and yet often overlooked elements in any given network. They are vital for proof-of-stake networks and are the cornerstones for blockchain technology. Specifically, validators forge new blocks, and each stores a full or partial copy of their blockchain.
Liquid Staking is the process of staking your funds, often in PoS mechanisms with a locking period, and yet keeping your liquidity by receiving a tokenized representation of your staked liquidity.
Let’s look at the challenges within the current DeFi ecosystem — and unpack how Trusted Node gives you a way to harness the value of your crypto assets by earning dual rewards without having to actively manage your portfolio.
Trusted Node opens access to PoS network rewards to everyone
Within PoS networks, validator nodes are essential to the health of a network. However, there are several drawbacks. Each network has different requirements for hardware, technical knowledge, and capital investment that are locked into the node. The up-front investment in physical hardware and continued maintenance is costly.
That means the rewards that come with operating a validator node aren’t accessible to most participants in the DeFi and crypto community. Many nodes are built by operators who provide validation as a professional service or infrastructural services for the chain, in many cases for high commissions. Other nodes are run by early backers who invested in the team that created the protocol. The rewards may end up being concentrated in a few silos in the network.
Trusted Node opens access to those rewards for everyone. We accomplish this by running validator nodes on the most important emerging blockchains, so you don’t have to keep track of the logistics and technical details of operating your own validator. This means two things for our users: Trusted Node is your hassle-free pathway into reaping the lucrative fixed income offered by PoS staking. Plus, you’ll play a part in making the next major networks more secure.
Here is an example of what our delegator interface will look like:
The Ins and Outs of Liquid Staking
Here’s one problem with providing liquidity to proof-of-stake projects: it involves locking assets into the protocol for lengthy periods for a fixed reward. While this does generate yield, it limits your options — your assets cannot be freed to create higher returns if new opportunities arise.
Liquid staking adds flexibility to that arrangement, allowing you to mobilize your staked assets in other trading or investment scenarios. It’s the best of both worlds — you will glean yield from your staked assets plus profits from the new ventures you discover. This is accomplished by tokenizing the stakes to generate collateral, which can be diverted to those new ventures.
In the context of Trusted Node, a wrapped token — a synthetic token pegged to the value of an asset — is created to provide users with liquidity, which can be allocated to Automated Market Making (AMM) liquidity pools like those on Uniswap and SushiSwap for new yield-generating strategies.
Because users helped secure networks through Trusted Node, they now have access to liquidity pools, allowing them to earn additional yield while their base capital remains safe and sound. Think of this access to liquidity pools as a bonus on top of the reward for helping secure a blockchain! We call this yield stacking.
$TNODE Holders can boost their PoS rewards
Users holding $TNODE tokens can boost their validator staking rewards. This is done by sending a transaction to the contract to lock up $TNODE tokens in a vault for a set amount of time, as determined by the user. Any user staking $TNODE will then receive a proportionate share of the daily rewards allocated to the vault. $TNODE will be listed on exchanges so it can be traded for other assets.
DAO Participation and General Governance
As mentioned, users will receive $TNODE in return for liquid staking. Along with giving users access to the liquidity pool marketplace, $TNODE also bestows the right to participate in the governance for the Trusted Node decentralized autonomous organization (DAO). Users can vote to launch new validator nodes for networks they believe will be beneficial to the platform, as well as how resources are allocated for the proof-of-stake networks. $TNODE will also provide voting rights to streamline governance of these PoS networks within the Trusted Node platform.
Unlock the earning potential of your assets. Put them to work through Trusted Node for optimized liquidity, compounded returns, and to be part of the platform’s DAO!
We will be walking you through more features of Trusted Node down the road. Please follow our social media to keep up to date with our offering!
About Trusted Node
Trusted Node is creating a validator network for proof-of-stake and next-generation blockchains. It allows for professional stewardship of the network while providing yields to stakeholders who participate in the decision-making around nodes in the network infrastructure.