Introducing Increment Liquid Staking

Hello World

Increment has developed and launched the first leading non-custodial Liquid Staking Protocol (i.e. LSP) on Flow.

By allowing users to earn staking rewards and enjoy unlocked liquidity to participate in Flow’s DeFi ecosystem at the same time, we believe that LSP creates huge new opportunities to the Flow network, node operators, stakers, and token holders as a whole.

LSP helps to decentralize the network, ease the staking process & diversify the risks, release unlocked capital, and create more yield & composibility opportunities.

Just give an example here: there are currently ~ 719,000,000 $flow tokens locked in staking. If we were able to make 10% of these staked tokens liquid, we’ll have ~ $121 million worth of TVL to participate in Flow's DeFi ecosystem.

Features

As of right now, users can:

• 💧 Stake $flow with LSP to get $stFlow. User can either hold, transfer, or use $stFlow within Flow’s DeFi ecosystem.
• 📈 $stFlow token’s price (against $flow token) grows over time: staking rewards are automatically re-staked (and thus compounded) in the beginning of each epoch.
• 💱 Redeem staked $flow & generated staking rewards using $stFlow, or simply swap $stFlow back to $flow on AMM/DEX, without waiting for the unbonding period of 7 ~ 14 days.
• 📥 Migrate — a feature specifically built for existing delegators. So if you’ve delegated to a node already, you do not need to unstake from the node, but instead you can “migrate” the staked position to LSP and receive $stFlow immediately in 1 transaction. Check our user guidance here for more info and certain restrictions.

👨‍🌾 Within the next 24 hours we’ll open a LP-farm for `$flow <> $stFlow` swap pair to incentivize LPs, creating a deep liquidity pool for users who need instant unstaking liquidity. $stFlow will also be enabled as collaterals in the money market in the near future.

Node List, Delegation Strategy

(*You can skip this section if you’re not running a flow validator node)

We do not spin up our own nodes, so the delegated tokens are not staked to us. The end goal is to let token holders (in future we’ll release the token) vote and distribute delegates in a weighted manner. However, right now there’s an allowlist of nodes, only nodes within the allowlist are eligible to receive delegates from LSP.

• Nodes in the list are chosen based on reputation, former experiences in maintaining node infrastructure, partnership, and so on. The 1st wave of nodes in the list includes nodes run by HashQuark (HashKey’s infra arm), Flow Versus, Blockchain at Berkeley, and we’re in talk with other professional node operators.
• A list of well-known nodes can be found here. If you’re a node operator and would like to join the node program, please find us on discord / twitter / email and let us know.

There are 4 types of nodes that are eligible to receive staking rewards: Execution, Consensus, Collection, and Verification. Right now all of them are applied with the same rewards weight, but it may change in the future according to Flow’s plan. Also currently nodes cannot customize the nodeCut parameter, as it is fixed to 8%, however, this is also updatable in future.

So for now the delegation strategy is simple enough: it will try to evenly distribute delegates to eligible nodes. But in the future once the node weight and node cut feature have been upgraded, the delegation strategy would also be upgraded accordingly, including but not limited to metrics like self-bonded amount, uptime, slashing history, etc.

More Info

Please check our user guidance and faq docs for more information.

Today is a historic moment, users do not have to choose staking $flow or using it in DeFi — with Increment LSP, now you can have both 🔥

Great thanks to our friends, partners, team and community members who encourage and supported us all along the way to make it happen! ❤️

About

Increment — the leading monolithic DeFi platform on Flow with real yield: with one-stop services including AMM/DEX trading, Liquidity mining, Money Markets, and Liquid Staking.

Apps: https://app.increment.fi

Twitter: https://twitter.com/incrementfi

Discord: https://discord.gg/r2keKxuKqX

New to trading? Try crypto trading bots or copy trading