Elrond (EGLD) Launches Metastake DeFi Platform for the Metaverse
Published1 year ago
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Elrond (EGLD) is launching a decentralized finance (DeFi) project for the metaverse. This marks the first foray of the Elrond blockchain in the metaverse.
Over the past few months, the metaverse has been a hot topic in the crypto space. Top blockchains are rushing to launch offerings that will attract developers and brands interested in creating virtual world experiences.
Elrond launches Metastake
On February 1, Elrond, a smart contract-based blockchain network, announced the launch of Metastake. This DeFi product will be custom-made for the metaverse, making it the first offering of its kind.
The Elrond Metastake product will allow users to receive additional rewards beyond the liquidity pool yields and farming rewards provided by the current DeFi platforms in the sector. The product will bring together token staking, liquidity providing and yield farming, such that users can earn rewards from the two offerings.
The blockchain states that Metastake will be an innovative platform unique to the Maiar decentralized exchange (DEX). Token holders will also have a chance to stake long-term and generate rewards through this. This will allow liquidity providers to continue generating additional income.
“They (Metastaking) offer an additional income stream for liquidity providers, who now earn a third type of reward – denominated in the staked token – for providing liquidity, in addition to LP fees and the regular LP staking farm,” the announcement read.
First phase to use the Holoride RIDE token
The blockchain added that the first phase of this initiative will be exclusive to the Holoride RIDE token. RIDE token holders that want to support the initiative for the long term will benefit from the multiple rewards offered by Metastake.
Users who participate in this initial phase will stake both the RIDE token and EGLDRIDELP farm tokens. This allows them to earn RIDE rewards at the same time. As aforementioned, this project holds immense benefits for long-term holders. They will have access to a simple and powerful staking process for their RIDE holdings. Users will also have a chance to compound the received rewards to generate additional benefits.
This project will also benefit the existing liquidity providers on Elrond. The EGLDRIDE liquidity providers farming MEX/LKMEX rewards can stake their farm tokens into the RIDE Metastake. As such, they will earn RIDE rewards above their existing rewards, creating a unique revenue stream for these users.
“Users staking RIDE directly will get the same reward as users staking EGLDRIDE LP farm tokens that contain an equivalent amount of RIDE. Otherwise said, rewards are the same per RIDE tokens, regardless of how they are staked. To account for the fluctuation of ratios in LP tokens, a “safe price” is periodically samples from the EGLD-RIDE pool and used for rewards calculation.”
EGLD/RIDE liquidity providers can earn rewards through various initiatives such as the LP fees from the liquidity pool, the MEX/LKMEXD rewards from the regular farm and RIDE rewards from the RIDE Metastake.
The announcement by Elrond also includes the rewards that users should expect from the initiative. It announced that 21,750,000 RIDE tokens will be issued as rewards for Metastake over the next year. The Metastaking platform will launch this month, after which users can start unlocking the staking rewards. This is a one-of-a-kind offering in the DeFi space, and as the metaverse continues to attract interest, similar initiatives could be unveiled.
To learn more about this token visit our Investing in Elrond guide.
Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.