LiNEAR is a revolutionary new liquid staking protocol built on the NEAR blockchain, with over $30 million TVL since its launch on April 5, and with the current TVL of approximately $10 million.
The protocol unlocks liquidity of the staked assets, enabling users to participate in DeFi without being locked in.
Unlike traditional staking methods, the $LiNEAR tokens obtained by users during the staking period are fully liquid. Users can maximize their yields and utilize their assets across a myriad of DeFi protocols on NEAR and Aurora.
NEAR is a high-performing cryptocurrency network that uses a unique approach to Proof of Stake (PoS) and sharding to optimize scalability and transaction speeds.
NEAR aims to deliver high throughput of up to 100,000 transactions per second (tps) under ideal conditions, at a cost of less than $0.001 per transaction, while ensuring that its platform remains decentralized and secure.
Near Protocol is a blockchain-based platform that offers developers the tools they need to create decentralized applications (dApps).
Its main goal is to make it easy for developers to build applications that are secure, scalable, and decentralized. Near Protocol was founded in 2018 by Illia Polosukhin, Alexander Skidanov, and Evgeny Kuzyakov.
Read more on NEAR here.
And LiNEAR wants to help, so how exactly?
LiNEAR offers two core services, Stake Pool and Liquidity Pool. In the Stake Pool, users can stake $NEAR tokens directly and receive $LiNEAR tokens in return.
The price of $LiNEAR goes up each epoch with staking rewards being accrued into the underlying staked $NEAR, ensuring LiNEAR users receive the same rewards as every other $NEAR staker.
Furthermore, the $LiNEAR tokens obtained during the staking period are fully liquid, which means users can utilize them across a myriad of DeFi protocols on NEAR and Aurora, such as lending, DEX, and stablecoin protocols, further boosting the yield earned by the staked $NEAR.
LiNEAR provides a secure and flexible alternative for users to stake their $NEAR tokens.
With its Instant Unstake function, users can pay a small fee (around 0.3%~3%) to redeem $NEAR and staking rewards instantly, reducing the volatility risks caused by a long unstaking process.
If users are not in a hurry, they can still choose Delayed Unstake with zero handling fee, which takes around the same time as the traditional NEAR unstaking process (~48 hours).
During the waiting period, users will not receive any staking rewards from $NEAR/$LiNEAR, and they can view the status of $NEAR redemption in My Account.
Users can still perform Delay Unstake to their remaining staked balance multiple times within the waiting time, and the end time will be calculated based on the latest one.
However, after the waiting time reaches, they won’t be able to unstake unless they withdraw the tokens and rewards.
In the Liquidity Pool, users (or Liquid Providers) who provide their NEAR tokens as collateral for those who require access to instant liquidity can earn instant unstaking fees in return.
Users can add or remove liquidity at any time they want. Once an unstake operation is done, the liquidity pool now includes $LiNEAR (sent by the user unstaking).
When another stake operation is called immediately, the order will be filled with the existing $LiNEAR provided from the liquidity $LiNEAR/$NEAR pool (without handling fee).
The remaining LiNEAR supply will be fulfilled with the stake position in the NEAR stake pool. When a User (or Liquidity Provider) removes liquidity from the pool, he/she can receive a certain amount of $NEAR and $LiNEAR representing their share of the liquidity pool.
One of the most exciting recent developments on Near Protocol is the launch of Phoenix Bonds, a novel bond mechanism that enables principal-protected amplified yield for end-users.
Phoenix Bonds were launched on January 16th, 2023, and have the potential to offer significantly higher yields than other staking options on the Near Protocol network.
So how do Phoenix Bonds work? In Phoenix Bonds, users can bond their $NEAR tokens to create a bond.
The bonded $NEAR is then staked in the LiNEAR protocol to generate staking rewards. The yield earned by the Pending Bucket flows to the Reserve Bucket, and users accumulate a balance of $pNEAR over time.
$pNEAR represents ownership of Reserve Bucket shares, and the floor price of $pNEAR will continue to appreciate against $NEAR.
There are three main actions that users can take in Phoenix Bonds:
- Buy Bonds: Users can buy bonds from the Phoenix Bonds smart contract by depositing $NEAR tokens. The purchased bonds will start accruing interest, and the user will receive a fixed return on their investment over time.
- Sell Bonds: Users can sell their bonds at any time to get back their deposited $NEAR tokens plus the accrued interest. The amount of $NEAR tokens that the user will receive depends on the current market price of the bond, which fluctuates based on supply and demand.
- Redeem Bonds: Once the bond reaches maturity, users can redeem their bonds to receive their original deposited $NEAR tokens plus the full interest earned. The maturity date for each bond is predetermined and set at the time of purchase. Redeeming the bond means that the user will no longer receive any further interest on their investment.
Read more on Pheonix Bonds here.
In summary, LiNEAR is a new liquid staking protocol built on the NEAR blockchain that unlocks liquidity of staked assets and provides users with flexible and secure staking options.
LiNEAR's two core services, Stake Pool and Liquidity Pool, allow users to maximize their yields and utilize their assets across a myriad of DeFi protocols on NEAR and Aurora.
The Instant Unstake function reduces the volatility risks associated with traditional unstaking methods, and the Liquidity Pool enables users to earn instant unstaking fees while providing liquidity for $LiNEAR/$NEAR.
LiNEAR is a powerful DeFi tool that offers users the benefits of staking without being locked in. Keep an eye out for the growth of LiNEAR amongst the NEAR network projects in the future.