Categories: DeFi

Hatom Protocol launches liquid staking, $sEGLD unlocks DeFi opportunities

Hatom Protocol launches liquid staking, $sEGLD unlocks DeFi opportunities

Hatom Protocol, a non-custodial liquidity protocol on MultiversX, has published an official tweet announcing that the liquid staking functionality is now live. It can be accessed via Devnet, with the mainnet launch scheduled to happen in the future.

Hatom Protocol has expressed confidence in the tweet, calling this a significant milestone, saying that $sEGLD will unlock several opportunities for decentralized applications in the DeFi sphere. However, the benefits will be restricted to members of the MultiversX community.

There is some time left for the mainnet launch. Until then, members can come forward to stress-test the staking applications in lending and liquidity. Their main task is to use the applications to the best of their capabilities. Also, they can craft their strategies and edge cases. The Proof of Work contest is live for 30 days.

Participants stand a chance to win a fair share of $10,000. The prize pool will be distributed among the top 100 participants, provided they use the applications as much as possible.

Additionally, participants can earn much more than a share of the prize pool. There is an opportunity to get their hands on trading fees and farming incentives via Liquid Staking LPs. All they have to do is provide liquidity to HSEGLD-EGLD LP and sEGLD-EGLD on AshSwap. 

Users are first required to disable collateralization of their assets on a lending platform for them to appear in their wallets or become eligible for providing liquidity.

Needless to say, users can maximize the $EGLD revenue without worrying about any impairment loss. Users can, meanwhile, use $HsEGLD and $sEGLD to maximize their returns with the DeFi products of MultiversX.

The development comes two months after the partnership between Hatom and AshSwap was announced. Specifically speaking, the collaboration came to light on February 7, 2023, intending to empower DeFi and accelerate its mass adoption through advanced liquidity protocols.

The mission is to improve the limitations of decentralized exchange platforms and the inconveniences that liquidity providers and delegators face every day. The utility of sEGLD is expected to spread across different DeFi apps leading in their respective industries. This will be achieved through interoperability within the MultiversX ecosystem.

It is expected to further reduce the dilution of liquidity.

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HsEGLD is the boosted form of sEGLD, with its value constantly rising through staking rewards and the accrued interest that users pocket through the lending protocol. Users can access both platforms and switch seamlessly, considering the token is listed on the lending application of Hatom and the decentralized exchange platform of AshSwap.

The MultiversX community definitely has a lot to look forward to since liquid staking is now live. This allows them to accumulate their token and participate in liquid staking. Rewards in the form of trading fees, farming incentives, and $EGLD revenue await as the MetaversX community moves forward with the development.

Trevor Holman: Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.