According to Alluvial, the operating company that supports its development, Kraken, a crypto exchange, has joined an industry consortium to create, secure, and support an enterprise grade liquid staking protocol. Alluvial revealed that the protocol would be called Liquid Collective and Kraken will join a growing number of participants such as BENQI, Coinbase Cloud, and Acala Foundation.
Alluvial, a Liquid Staking startup, has added Kraken cryptocurrency exchange platform to its independent industry consortium. It announced that it will now be called Liquid Collective.
Other Industry players include Kiln BENQI and more
Kraken is joining a growing number of industry participants, such as Kiln and BENQI, Rome Blockchain Labs, and Acala Foundation, who help to secure, build, and support multi-chain enterprise-grade liquid staking protocols.
It is hoped that the industry standard will be established, which will allow trading venues and custodians offer liquid staking for institutional customers. This will include robust KYC/AML monitoring and reporting.
Liquid Staking increased from 1% to 30% of the Ethereum staking segment in just one year.” According to Tim Ogilvie (product director at Kraken), demand is increasing rapidly and institutional interest has emerged.” Kraken has the opportunity to help create the most secure liquid staking system for enterprises.
Proof-of-stake cryptocurrencies equate to more than half of the crypto market cap
Matt Leisinger (CEO and cofounder of Alluvial) stated that proof-of-stake cryptos account for more than half the total crypto market capital, but there has never been an option for token holders to take part in liquid staking.
Token holders will have seamless access to liquid staking that is enterprise-grade with the launch of Liquid Collective. True collaboration is the only way to achieve this goal. Liquid Collective is proud to have collaborated with some of the most talented web3 teams.
To contribute to their security, and to earn rewards, liquid staking is a popular alternative for traditional staking.
Users lock their tokens on proof of stake blockchains to secure them. Liquid staking provides users with a derivative cryptocurrency token that represents the equivalent amount of an understake asset such as STETH. This is Lido’s liquid version of staked Ethereum.
Liquid staking is better than long unlocking periods for tokens. It allows stakers to have greater liquidity and transfer the derivative crypto tokens to increase their yield in other DeFi protocols. These tokens will be called LsETH in the Liquid Collective protocol.
This news is Kraken’s latest move in liquid staking services. In December 2021, purchased the non custodial staking platform Staked. Along with Coinbase Cloud, Figment, Staked will be a validator for Liquid Collective.