The Good Tech Companies - Suilend Introduces New Liquid Staking Standard on Sui Network

Starting point is 00:00:00 This audio is presented by Hacker Noon, where anyone can learn anything about any technology. Sweland introduces new liquid staking standard on Sway network by Ashan Pandey. Sweland, a DeFi platform on Sway, has released Spring Sway, a framework for liquids taking tokens LSTs, along with its first implementation, Spring Sway, SSUI. The launch comes as Sway's liquid staking adoption lags behind other major networks, with only 1.18% of tokens in LSTs compared to 6.6% on Solana and 41% on Ethereum. Spring Sway builds upon two protocol upgrades, SIP31 and SIP33, which introduce new token standards for LSTs. The framework allows users to stake Sway and receive tokens representing their staked assets, which can be utilized across DeFi platforms.

Starting point is 00:00:52 The technical implementation includes an instant unstaking feature, which addresses depegging risks in LST-backed collateral. This feature could help mitigate a common concern in liquid staking protocols where token values can diverge from their underlying assets. SIP31 and SIP33 are significant upgrades to Sway staking. Adding fungibility to staked tokens will improve the interoperability of existing use cases and enable some new ones, said Sam Blackshear, CTO of Meisten Labs. Industry participants have shown interest in adopting the standard. Aftermath Finance, a leading LST provider on Sway, has committed to implementing Spring Sway. Studio Mirai plans to explore community-driven LSTs using the framework. The Spring Sway standard has been open-sourced, allowing any Sway developer to build upon it. Sweland plans to launch a

Starting point is 00:01:42 platform enabling users to create and manage their own LSTs with customizable fee structures. The introduction of Spring Sway could address several challenges in Sway's DeFi ecosystem. The low LST adoption rate suggests untapped potential for growth, and standardization could help accelerate development. The instant unstaking feature tackles a critical risk factor in liquid staking protocols. The open-source approach and support from established projects indicate potential for ecosystem-wide adoption. However, success will depend on market conditions, user adoption, and the ability to maintain security as usage scales. The timing aligns with broader trends

Starting point is 00:02:22 in DeFi, where liquid staking has become increasingly important for capital efficiency. As proof-of-stake networks mature, standards like Spring's Sway could play a crucial role in developing robust DeFi infrastructure. For context, Sway is competing in a market where Ethereum dominates liquids taking with products like Lido. SpringSway's technical innovations and focus on risk mitigation could help differentiate Sway's LST ecosystem, though reaching similar adoption levels will require sustained development and user engagement. Don't forget to like and share the story. Tip Vested Interest Disclosure.

Starting point is 00:02:57 This author is an independent contributor publishing via our business blogging program. Hacker Noon has reviewed the report for quality, but the claims herein belong to the author. Hashtag D-Y-O-R. Thank you for listening to this Hacker Noon story, read by Artificial Intelligence. Visit HackerNoon.com to read, write, learn and publish.

The Good Tech Companies - Suilend Introduces New Liquid Staking Standard on Sui Network

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