How are we different from Liquid Staking?

Liquid staking has been the talk of the town for the past year with the surge in LSD and LSDfi products. Liquid staking brings capital efficiency to the ETH and already has a proven product market fit.

We at Nexus Network have taken a staking-based approach which we believe is a better solution for rollups looking to stake the ETH locked in rollup bridges -

  • Plug & unplug - Staking flow is the same for both staking and liquid staking. For unstaking, rollups staking with Nexus Network can change the stake in a single smart contract call allowing them to unplug within seconds. For a liquid staking protocol, since the LSD token is held by users, unplugging is very difficult, and thus the rollup becomes dependent on the liquid staking protocol for eternity

  • Non-custodial - The solution by Nexus Network is completely non-custodial. For liquid staking, there is a staking pool in the middle that manages the flow of all the ETH being staked with the protocol

  • Additional overheads - For a rollup working with a liquid staking provider, they will have to create liquidity for the LSD token through incentives, etc. There is no such requirement if it uses a staking provider like Nexus Network

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