Tenderize here. We’re excited to be a part of the growing Livepeer ecosystem and look forward to keep playing a meaningful role in its future development. We would like to shed light on our commitment to the network, centered around decentralizing Liquid Staking for LPT.
We are building non-custodial LPT Liquid Staking. The protocol is called Tenderize v2. This decentralized, permissionless and open-source protocol can transform a previously staked position into a liquid staked token (LST), which Tenderize calls tTokens.
This new tToken cab instant liquidity because it can be swapped for the unstaked version of the same asset through Tenderize’s application specific AMM: TenderSwap v2. Users can always simply unstake as well and wait 7 days to reclaim their LPT.
Motivation: decentralizing liquid staking for LPT
Building a decentralizated network is one of the strategic priorities for Livepeer since genesis. As participation in LSTfi increases, it’s crucial to also develop and implement a decentralized approach from the onset.
LST/LSD: Liquid staking tokens (formerly Liquid staking Derivatives) have gained traction according to recent open data on Dune.
There must be a mechanism to decentralize delegation amongst all orchestrators and not silo stake to large orchestrators. Any LPT holder, holding as little as 1, can stake to any LPT orchestrators through Tenderize v2, delivering lower barriers to entry for validating and decentralizing the stake at a delegation level.
Tenderize V2 Launch and Incentives Offered
Tenderize is allocating 3% of our governance token, WAGYU, total supply to allocate to orchestrator partners or LPT whales interested in delegating through Tenderize v2.
Our launch TVL target is $1.5M LPT, if this number is hit, those staking LPT through Tenderize v2 can expect another 10-20% in WAGYU on top of the native ±26% LPT staking yield.
The 20-30% APR on top of native LPT staking yield is generated from:
grant worth of 10% of staked value for orchestrators and 5% for whales.
10-20% from airdrop.
10% each year from staking incentives.
If you want to project your ROI into the future when staking in our protocol on launch day, we have created a calculator to help showcase expected rewards. You can find it here.
Key Benefits to LPT orchestrators
- Orchestrator Grant & Increased Yield: Participating orchestrators can benefit from a grant equal to 10% of the initial stake which half is used to boost your orchestrators yield for delegators
- Liquid Stake: Orchestrators can bypass the unstaking window of their tTokens by swapping to unstaked LPT at any time via TenderSwap.
- Visibility & Stake Increase: Participants will gain exposure through our go-to-market materials and have the chance to accept community delegations on launch day, effectively increasing their stake.
- Upside exposure: Thanks to the airdrop, staking yield and validator grant, users participating in Tenderize v2 launch enjoy the upside benefits of WAGYU while simultaneously decentralizing the Livepeer Network.
Technical Architecture for decentralized LST infrastructure
Tenderize v2 is a fully decentralized and permissionless version of Tenderize v1. It possesses a robust, secure, and efficient technical backbone, inheriting core modules from Tenderize v1. The latter was launched in May 2022 with $1M worth of liquid staked MATIC, GRT, and LPT across Ethereum L1 and Arbitrum.
How the decentralized LST infrastructure works
- Tenderizer: Decentralizes LST tokens to the core
- TenderSwap DEX: Makes LST tokens liquid
Decentralizing LST tokens to the core
Any orchestrator can self-delegate through Tenderize v2 - minting a LST representing their stake. This is called a tToken. Users can delegate stake to any Orchestrator.
Making LST tokens liquid
Once the tTokens (LST) are minted the holder has two options;
- A LPT holder can either unstake by waiting 7 days for the unstaking period
- Or use TenderSwap DEX for instant liquidity swapping your tLPT tokens for LPT.
TenderSwap is an application-specific decentralized exchange (DEX) tailored for liquid staking. It provides liquidity to tTokens (LSTs) through a shared liquidity pool model, as illustrated below.
Launch & Participation
As mentioned during the Livepeer Water Cooler community call on the 5th of June 2023. In anticipation of this major release, we will be rolling out our official testnet this summer, providing an early glimpse into the Tenderize v2 protocol and its functionalities. All launch partners can interact with the code, testnet and review audits before joining the cohort.
Our proposed incentive program presents a golden opportunity for orchestrators to garner significant benefits while playing a critical role in decentralization of LPT liquid staking. We aim to make underlying networks resilient and robust. The more orchestrators use Tenderize V2, the more resilient and sustainable the Livepeer network will be.
We invite LPT orchestrators to join our mission in amplifying the decentralization of LPT liquid staking. To apply click here, or you can directly reach out to us on Telegram: @nvergauwen or @AlecShaw.