Boosted Stake
Boosted Stake, as presented by FluidTokens, is a protocol that seamlessly combines liquidity provision and borrowing against $ADA delegation. The protocol offers a two-fold benefit to liquidity providers and borrowers, introducing a novel way to enhance the decentralized finance (DeFi) landscape.
For Liquidity Providers
Liquidity providers using Boosted Stake gain unprecedented control over their $ADA APR. They have the autonomy to decide the amount of ADA they want to deposit into the protocol, set the Annual Percentage Rate (APR), and determine the duration for which their staked assets can be utilized by borrowers. Importantly, during periods when borrowers are not actively using their ADA, staking rewards flow directly to liquidity providers, maximizing their returns.
For Borrowers
Borrowers engaging with Boosted Stake experience a streamlined process. They get to decide the precise amount of staking delegation they require and specify the number of epochs for their borrowing needs. Notably, liquidity providers receive their payment upfront, and borrowers are restricted from spending the borrowed ADA. This unique feature ensures a secure borrowing experience for all participants.
Why it is 100% risk-free
- The lent $ADA are non spendable by the borrower
- Borrower pays the interest at the beginning of the loan
- At the end of the loan period the $ADA is automatically moved back to the lender
- If no one is borrowing $ADA, lender keeps earning his usual staking rewards
- There is no need of any collateral (so no liquidation)
Use cases
Boosted Stake serves various purposes, making it a versatile protocol in the crypto space. Here are some key use cases:
- Initial Stake Pool Offerings (ISPOs): Boosted Stake provides a platform for ISPOs, allowing pool delegators to increase their block rewards and actively participate in staking activities.
- Pool Delegators Seeking Block Increase: For pool delegators aiming to enhance their block rewards, Boosted Stake offers a unique opportunity to achieve this goal.
- Snapshots for Airdrops: Some airdrops are related to the total $ADA delegation under a wallet
…and much more. The flexibility of Boosted Stake opens doors to numerous possibilities, creating a dynamic ecosystem for users.