Coinbase, one of the popular Bitcoin and altcoin exchanges, made a new announcement. The exchange has partnered with Liquid Collective to launch Liquid Staked ETH (LsETH), a new liquid staking solution that provides more security and liquidity to institutional investors. Here are the details…
Altcoin announcement from Coinbase
Staking is the process of holding and locking cryptocurrencies to help secure the underlying Blockchain network and can provide investors with passive income on the assets they already hold. Liquid staking takes this a step further by providing greater flexibility and liquidity, allowing traders to stake their holdings without having to lock them up for a while.
According to the releases, the launch of LsETH in collaboration with Liquid Collective is designed to deliver the highest security standards to meet regulatory obligations and best practices for institutional investors. All corporate users who issue LsETH through the Liquid Collective protocol will have passed Know Your Customer (KYC) and Anti-Money Laundering (AML) checks, regardless of which exchange or custody service they do so.
To provide greater security, LsETH uses a variety of validator service providers, including Coinbase Cloud, Figment, and Staked, which build applications such as LsETH, multi-cloud and multi-region infrastructure, technical support teams, and double-signature protection to mitigate. Institutional users participating in staking also protect a portion of all staking rewards with a program run by Liquid Collective.
Liquid staking area is developing
Validator service providers also provide coverage against “slashing” events caused by infrastructure failures. Finally, institutions participating in staking are protected by a Nexus Mutual coverage policy that scales dynamically as the protocol grows. In addition to greater security, LsETH provides deep liquidity through integration with the largest exchanges and custodian platforms, allowing institutional investors to join the DeFi space through the adoption of the LsETH token.
Coinbase Prime, the corporate arm of Coinbase; Supports traditional staking for a number of other assets, including Near, Polygon, Solana, Polkadot, Cosmos, Tezos, Celo, and Aptos. Overall, the launch of LsETH represents a big step forward for institutional investors looking to engage in staking and DeFi with greater flexibility, security and liquidity. With plans to add liquid staking support to more assets in the future, Coinbase and Liquid Collective are positioning themselves as leaders in the emerging liquid staking space.
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