Liquid Staking is live on Aleph Zero with Ike

Liquid staking allows you to simultaneously stake AZERO and participate in Aleph Zero’s DeFi ecosystem. And with Ike’s Mainnet launch, you can get started right now! Here’s all you need to know!

Ike is the result of Kintsu undergoing a strategic fork. This fork has paved the way for Ike to emerge as an independent brand that is completely dedicated to Aleph Zero. It’s already live on the Mainnet and has passed a security audit done by the blockchain security experts at ULAM LABS. You can view the results of the audit available here.

If you’ve been following Kintsu’s development, Ike is built by the same team led by Stephen Novenstern, former Head of Strategy at Pangolin DEX. The Aleph Zero community can rest assured that the same expertise, dedication, and innovation that powered Kintsu’s success will now drive Ike forward. 

What are the benefits of liquid staking? 

One way of conceptualizing liquid staking is thinking of it like collecting airline miles. You’re earning reward miles (staking) but still have the flexibility to travel. PoS chains like Aleph Zero are the airlines that ensure smooth operations—and the applications and protocols you can utilize are destinations you can fly to. 

And speaking of flight, liquid staking is emerging as a “flight to quality,” as it offers so much more than regular staking through liquid rewards that have a growing list of applications and integrations. 

For example, LSPs are offering users a substantially enhanced DeFi experience by reducing friction and enhancing liquidity. And if we break down some of the core benefits of LSPs like Ike in more detail, we’re talking about heightened access to staking rewards, a simplified staking process, mutual Validator-user gains, simultaneous liquidity and yield, and composable yield:

Heightened access to staking rewards

Most PoS protocols demand a minimum token amount when staking, which can act as a barrier for users with limited capital. LSTs like sAO solve this problem by allowing fractional ownership of staked assets. This means you can pool your tokens with others to meet the staking thresholds—and earn rewards that are proportional to your contribution.

A simplified staking process

Setting yourself up as a network validator typically requires a lot of technical expertise and complex infrastructure. LSPs like Ike simplify this process by offering Staking-as-a-Service, where providers handle the technical complexities. This means users can easily access staking services by interacting with blockchain contracts.

Mutual Validator-user gains

Liquid Staking creates a symbiotic relationship between users and Validators. Validators gain access to large amounts of native gas tokens for staking, while users earn staking rewards after the Validators take a commission fee. 

Simultaneous liquidity and yield

LSTs like sAO represent direct ownership of staked AZERO and are fully backed by the network’s tokens. These fungible sAO tokens can be used in other network activities like DeFi, gaming, and lending—all while continuing to generate yield from your staked balance.

Composable yield

Since LSTs like sAO are liquid representations of yield-bearing staked assets, they can also earn additional yield when used in DeFi activities like lending. This creates the potential for users to earn yield twice on the same underlying assets.

How do Liquid Staking Protocols (LSPs) work?

With typical Proof of Stake networks, once you stake your tokens, this liquidity remains locked—and on Aleph Zero, unstaking requires a wait of around two weeks. While you do earn rewards from this, you’re not able to leverage these tokens throughout the wider DeFi landscape. Now thanks to Liquid Staking Protocol (LSP) Ike on Aleph Zero—you no longer need to choose between earning staking rewards and participating in DeFi.

Just like standard staking, LSPs enable users to stake their native gas tokens (for example, AZERO) and earn rewards. However, the big difference is that with liquid staking, you are issued LSTs or Liquid Staking Tokens––such as sAO on Ike––that are backed by the blockchain’s staked native gas tokens. 

This means that you get the full benefit of standard staking rewards while helping secure the network, but also retain full liquidity and are free to participate in on-chain activities across the Aleph Zero blockchain using sA0 in place of the native gas token, AZERO.

You can also see how Ike on Aleph Zero stacks up against the top 10 liquid staking projects here.

Native gas token staking rewards are solid—but LSTs like Ike are always liquid 

To stake your tokens with Ike, you begin by initiating a stake transaction with the Vault contract. This will submit your native AZERO gas tokens to the Vault. You will then receive sAO back from the Vault. The amount you receive will depend on the current Redemption Ratio, which you can see on the Ike website before initiating your stake transaction. The amount of sAO received is typically slightly higher than your amount of native gas tokens staked.

Taking advantage of liquid staking on Ike

Ike’s UX is intuitive, but there are a few key things you should be aware of when getting started. 

Firstly, you can use Ike’s interface to start staking with their validators system. You’ll receive sAO for your staked amount—and then you’ll be able to use it within Common and other DeFi projects on Aleph Zero while simultaneously getting your staking rewards for your staked amount. It’s also important to note that to remove your funds from the platform, you’ll need to unbond them and then withdraw after 14 days.

If you’re currently staking AZERO, you need to unstake it. After the unbonding period, you then need to stake it back via Ike.

Start [liquid] staking on Ike now—where you can have your stake and use it too!
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