How Is Liquid Staking On Cashfi (CFI) Different From Curve Finance (CRV) And Maker (MKR)?
Liquid staking on CashFi is a step forwards from the problems of illiquidity on the blockchain. It has become especially prevalent since the proof of stake system came into play, giving investors the right to participate in verifying transactions and getting rewarded. The act itself is not only Beneficial but would require that you do little or no work with zero risks of losing your assets. It gets even better knowing that you’ll still have all the access to your funds while you stake them.
Liquid staking is not a feature found on every Blockchain protocol. Still, it is gaining popularity, and new projects with the feature are gaining ground within the DeFi ecosystem. Here we’ll be discussing CashFi as one of these projects, including the differences between its liquid staking feature when compared to already existing ones like Curve Finance and Maker.
CashFi, The New Generation Of Liquid Staking
CashFi is a new generation liquid staking protocol that allows you to access your funds and stake them to get rewards. It is an ERC-20 token that offers speedier, cost-effective, and scalable services. Liquid staking on CashFi is different from what we might have witnessed in the past. It will be a crucial component in reducing illiquidity and solving the present shortcomings of the system. The obstacles of asset inefficiency, lesser yields, lack of security, and instant liquidity are limitations that the CashFi liquid staking system aims to overcome. Accessibility is better with $CFI staking as tokens aren’t frozen, unavailable, or completely locked as it is in PoS.
CashFi’s CFI Stake will be a liquid staking platform that will allow PoS tokens to grow and thrive. By delivering 1:1 pegged ERC-20 liquid staking representation tokens on Ethereum, CFI Stake will enable users to defend PoS platforms natively while unlocking liquidity for staked assets. In addition, individuals will be able to participate in Ethereum DeFi while using CFI Stake, allowing them to increase their wealth and return.
Curve is a well-known automated market maker (AMM) platform that provides a very efficient way to trade tokens while keeping cheap fees and minimum slippage by accepting liquidity pools of assets that behave similarly. Furthermore, the curve incentivises their involvement by connecting with other DeFi protocols and offering rewards through CRV tokens and interest. At the same time, this strategy results in cheaper costs for the liquidity providers that provide the pools with tokens.
Curve Finance is focused mainly on stablecoins, although they have tokenised versions of BTC such as renBTC and wBTC, which also contribute to the liquidity pool. Profit margin is limited for liquidity stakers as interest is decided based on demand and supply. Compared to a CashFi allows users to adjust their risk tolerance, reduce it when the market is unstable, and increase it when the market is stable.
Curve Finance has a total value locked of around $9 billion, and the native token of the protocol has a market cap of $4 billion as of the 1st of June 2022. CashFi’s competitive advantage over Curve Finance would be that it’s a new platform with a large profit margin from liquid staking for early investors.
Maker is a permissionless lending platform that helped launch DAI, the first decentralised stablecoin based on Ethereum. The Maker has long maintained the top spot on practically all DeFi monitoring systems regarding the total quantity of ether (ETH) locked within the system since many consider it the first DeFi project.
For those unfamiliar with Maker, it is a platform that lets any user take out a loan (in Dai) by putting up digital assets like ether (ETH) as collateral. Because the system is permissionless by design, there are no KYC requirements to get started. Furthermore, smart contracts conduct all lending operations, implying that no person is engaged in the loan facilitation process.
Liquid staking is somewhat deficient on Maker that the DAO proposed last month to replace the MKR governance token because of a significant tokenomics shift. The protocol would replace the MKR token with a new token, stkMKR. The existing tokenomics structure, which runs on a “buyback and burns” mechanism, has flaws and inefficiencies. The community claims the present system has various drawbacks, including a lack of tailored incentives because of repurchase and burn to return all cash to MKR holders.
You can find out more about CashFi here: