Liquid Staking
What is liquid staking?
Liquid staking on Argo is an alternative to traditional staking with a validator. It allows you to stake your CRO on Argo and receive bonded CRO ("bCRO"). bCRO that you receive represents your staked CRO and acts as a receipt, allowing you to exchange them later on for your staked CRO and the earned rewards.
bCRO is a liquid, tokenized representation of the staker’s staked CRO. bCRO enables stakers to gain liquidity over their staked CRO and enables the locked value of the staked CRO to be utilized across decentralized finance applications across Cronos. Find out more about bCRO in the following section.
Key benefits of Argo liquid staking
Simplicity
Argo offers a simple and one-click liquid staking feature for users to stake CRO on Cronos. Currently, there are no CRO staking option on Cronos. Argo not only makes it possible to stake CRO on Cronos but extremely easy and seamless as well.
Capital Efficiency
With a fully liquid derivative token (bCRO), users are opened up to the possibility of using their staked assets across other DeFi applications. Users no longer have to choose between staking CRO (locking up CRO) or using that asset value as liquidity across decentralized exchanges or provided as collateral in lending platforms. You can now earn DeFi yields on top of staking yields!
Instant Liquidity
Users do not have to wait for the 28 days unbonding period to unstake their CRO and get back their assets in their wallets. Instead, bCRO can be immediately swapped for CRO across secondary markets such as decentralized exchanges. We believe the secondary market will be extremely attractive to two stakeholders in the Cronos ecosystem:
Stakers who wants instant liquidity Immediately swap your bCRO to CRO without waiting for the 28 days period across our DEX partners.
bCRO <> CRO arbitragers Since instant liquidity to swap bCRO to CRO will result in CRO trading at a premium (liquidity premium) to bCRO. Arbitragers who are bullish about CRO can essentially buy bCRO at a discount and go through the normal 28 days unbonding period to receive more CRO after the unbonding period ends.
Diversified Validator Management
Our Validator Delegation Strategy aims to optimize staking returns and reduce slashing risks as we spread the staked CRO across multiple high quality validators.
Reduced Slashing Risks
Argo diversifies all staked CRO across a multitude of whitelisted high-quality validators who were selected based on meeting certain threshold performance criteria (Uptime, Commission %, self-staking, Oracle Sign %). With Argo liquid staking solution, users can delegate their CRO to a multitude of validators rather than just one. Due to the fungibility of bCRO, each unit of bCRO share the same risk and rewards. The cost of slashing is thus spread across pro-rata to all bCRO tokens. This design is inspired by the Bonded Asset (bAsset) design of Lido in collaboration with Anchor Protocol on Terra.
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