The post Liquid Staking on Sui Gets a Shake Up With New Token Standard From Suilend appeared on BitcoinEthereumNews.com.

A new token standard by Suilend – SpringSui – has been announced that has the potential to shake up the staking landscape on Sui. The first proof of concept comes in the form of Spring SUI (sSUI), which will serve as a liquid asset for SUI stakers who can use it to earn additional yield across various DeFi protocols. Liquid staking tokens (LSTs), the largest DeFi sector by TVL, has been the center of much of the onchain innovation occurring during the current bull market. And now it’s Sui’s turn to capture the upside to the LST craze as it seeks to grow a DeFi vertical that’s been slower to take off here than on Solana and Ethereum. Spring Comes to Sui Suilend’s new token standard, SpringSui, marks a significant step forward for liquid staking on Sui, targeting a market that currently lags in liquid staking adoption compared to more established PoS chains. By building on existing token standards SIP31 and SIP33, SpringSui is structured to support broader DeFi use cases and expand Sui’s rapidly growing ecosystem. The standard, although developed by Suilend, is openly available to all Sui network developers to ensure widespread adoption. Aftermath – an established staking protocol on Sui – has already integrated SpringSui, setting a precedent for others. By encouraging participation from additional platforms, Suilend hopes to stimulate growth and adoption of liquid staking on Sui, bridging the gap between Sui and more mature ecosystems. A key innovation here is SpringSui’s potential for cross-protocol collateralization. By allowing liquid staking tokens (LSTs) to serve as collateral in lending, borrowing, and potentially in backing collateralized stablecoins, SpringSui could unlock new DeFi functionalities on Sui. While some of these use cases will take time to be developed, in the here and now, growth of LSTs gives greater freedom…

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Filed under: News - @ November 1, 2024 12:15 am