⁉️About Lair Finance
Last updated
Last updated
Lair is the next generation liquid staking solution built for Kaia KIP-163: CnStakingV3 - providing a simple way and diverse options to get rewards on KAIA tokens. By staking with Lair, KAIA tokens remain liquid and can be used across a range of DeFi applications, getting extra rewards.
NodeController. Protocol to manage deposits, staking rewards, and withdrawals.
StakingToken. Unlike staked tokens, the Lair stKAIA tokens are freely transferable instead of locked as in the case of native staking. Lair lets users operate with staked tokens by leveraging collateral, lending, farming, and other kinds of DeFi protocols. It’s a yield-bearing token whose value against KAIA systematically increases over time.
DAO. Lair Finance management entity, responsible for picking GCs, configuring the protocol parameters and much more. It will be managed by Lair DAO token holder governance.
GC Partners. GCs that manage a secure and stable infrastructure for running validator clients for the benefit of the Lair Finance and its users. They’re dedicated staking providers who can ensure the safety of funds belonging to the protocol users and correctness of validator operations.
Public Delegation. Before cnStakingv3, only a few validators offered public delegation services, limiting users' options. By enabling public delegation natively in CnStakingV3, users can delegate their KAIA to any validator offering this service, thus broadening the delegation options and improving network participation. Lair Finance is the first service to adopt KIP-163: CnStakingV3 on Kaia, allowing users to delegate their KAIA tokens to a decentralized set of GC members.
Traditionally, staking in Proof-of-Stake (PoS) protocol based projects has been about locking one’s tokens in one project for a long time and expecting a fixed, predetermined staking reward in return. While it guarantees the return on staked tokens much like a bond, it also limits the opportunities of generating higher returns on those tokens from the DeFi ecosystem. If you’ve staked all of your crypto holdings, you can’t invest or trade in more profitable crypto pairs on exchanges. The 7-day unstaking period makes it even less liquid.
Liquid staking service providers already exist in the Kaia ecosystem, but most of them take full control of the validator selection process, delegating all the user assets to a single Governance Council member. This is a huge centralization risk that can jeopardize users’ funds. And because of the decentralization seeking nature of the Kaia staking rewards incentive system, a GC receives less and less amount of staking rewards as its staked amount increases. Combined together, the existing Liquid staking service users on KAIA suffer from both centralization and low staking APY.
Lair allows using the stKAIA token in other trading opportunities to let the user get the best of both worlds - a reward on your staked KAIA tokens, as well as the returns from new trading opportunities. Lair liquid staking introduces various fundamental benefits by:
Making the staking process easy. Just stake KAIA to your choice of GC on Lair staking interface. There’s no need to claim rewards or compound. The rewards are automatically compounded via yield-bearing token stKAIA.
Decentralizing Kaia GC voting power. Lair lets users choose the GC that they want to delegate their tokens to. You can view the GCs’ voting power and actual APY before making a choice.
Getting the maximum return from staking. Users can choose a GC that offers the highest staking rewards APY from the list. You don’t have to give up on the staking APY to use it on DeFi.
Providing the stKAIA a building block for other applications and protocols (e.g., as collateral in lending or other trading DeFi solutions). Liquid staking gives an opportunity to maximize the potential while having the best of both worlds;
Unstaking instantly. Users staking KAIA with Lair Finance can unstake their stKAIA tokens instantly without waiting the 7-day unstaking period. This is made possible by Lair’s partner DEXs’ stKAIA <> KAIA pair pools.
It may have been possible to produce staking through some staking contracts provided by a few individual GC members via their portals. But they either don’t give you LST to use on DeFi, or don’t offer the highest level of staking rewards APY. It’s most likely because of the following reasons which are very difficult to fix:
Liquid staking contracts on cnStakingV2 don’t allow public delegation. They can only delegate to a single GC member.
When a single GC takes too much delegation, Kaia systematically lowers the GC’s staking APY to incentivize the network to be decentralized.
Lair fixes these two problems by building our service based on cnStakingV3, which goes live with Kaia mainnet launch.
KAIA Staking: Users stake KAIA tokens with Lair Finance.
stKAIA Issuance: In return, users receive Liquid Staking Tokens (LSTs) that represent their staked assets and rewards.
GC Selection: Users select their chocie of GC to delegate their assets.
Rewards Distribution: Staking rewards automatically get compounded to the stKAIA token. There's no need to manually claim and stake again.
Extra Yields from DeFi: stKAIA can be used in various DeFi applications, enabling users to earn additional yields.
Flexible Unstaking: Users can either wait 7-days KAIA unstaking period to fully unstake their assets, or unstake instantly via stKAIA <> KAIA liquidity pool on Lair partner DEXs.
Decentralized LSD: As the first decentralized LSD protocol on Kaia chain, Lair Finance can offer higher security and staking APY compared to the centralized LSD providers.
Dual Yield Optimization: Lair Finance uniquely solves the growth dilemma of the Kaia chain by allowing users to simultaneously earn both GC delegation rewards and DeFi yields.
Proven Team Expertise: Our team's experience in blockchain validation demonstrates our capability:
Been maintained a 95% staking retention rate
Secured commitments for $2.2M in ecosystem grants (*70% allocated for user incentives and ecosystem growth)
Instant Withdrawal: Lair Finance offers instant withdrawal feature through connected DEXs. Unlike standard Kaia users who must wait at least 7 days to claim their profits, our users can enjoy the flexibility and convenience of immediate access to their funds.
Strong Partnerships: We're actively collaborating with DeFi teams supported by the Kaia foundation, ensuring wide compatibility and integration of our LSTs across the ecosystem.
Substantial Backing: With anticipated support of a $2.2M grant and DAO fund program from the foundation, Lair Finance is set to become the largest and most advanced LSD protocol in the Kaia ecosystem.
Decentralized GC Selection: As the only LSD on Kaia that allows users to choose their GCs, Lair Finance provides a truly decentralized service encompassing the entire ecosystem. This flexibility empowers users to have more control over their staking decisions, further enhancing the overall value proposition.
Experienced Team: Backed by prominent investors such as Kakao Ventures and KB(Kookmin Bank) Investment, our team has demonstrated success in fostering community-driven growth within the blockchain ecosystem, with a proven track record of building and scaling projects that prioritize user engagement and decentralized governance.
