Jul 19
A Deep Dive into Stakee
Stakee is a staking platform designed for the TON blockchain, allowing users to stake as little as 1 TON with the convenience of instant withdrawals directly to Telegram. In total, over $3 million worth of TON has been staked via Stakee so far.
Staking protocols have become a cornerstone for network security and investor participation in various blockchain projects. The TON blockchain is not exempt from this. In fact, there has evolved an entire pool of liquid staking innovations that aim at democratizing access to blockchain technology and so many other reasons.
Examples include Tonstakers, Bemo, TON Whales, Hipo Finance, etc. And of course, Stakee, which is the subject of this review. Stakee was launched about 7 to 8 months ago, but its reputation has shot up very quickly.
Innovations like this have contributed to the exponential growth of TON in recent months and with this guide, you should be able to understand Stakee and liquid staking on TON more.
What is Stakee?
Stakee is a staking platform designed for the TON blockchain, allowing users to stake as little as 1 TON with the convenience of instant withdrawals directly to Telegram. In total, over 3 million worth of TON has been staked via Stakee so far.
Despite having only been launched in December 2023, Stakee has quickly amassed $20 million in Total Value Locked (TVL) and taken over 5% of the market share, reflecting its growing popularity.
The platform is decentralized, with all assets securely held in smart contracts developed by the TON Foundation. Stakee promises up to 7% annual returns, positioning itself as an easier and potentially more profitable alternative to traditional bank deposits.
How Stakee Works
Stakee operates on a straightforward staking mechanism. Users connect their TON wallets to Stakee through app.stakee.org or the @StakeeBot on Telegram. After connecting, they can stake any amount of TON by sending a transaction, which is then confirmed through their wallet. Once staked, users receive STAKED tokens, which grow in value over time as rewards accumulate.
The rewards come from transaction fees and other blockchain incentives, distributed by validators who share profits with users based on their staked TON. Users can manage their stakes, track daily rewards, and withdraw their coins through the app or via MyTonWallet.io.
The use of official TON Foundation smart contracts ensures the security of users' assets. Those have already been audited and are trusted by the community, which adds to Stakee’s credibility.
Liquid Staking on TON
Liquid staking on TON offers a flexible and efficient way for investors to utilize their assets. Unlike traditional staking, where assets are locked up, liquid staking provides users with "receipt" tokens like STAKED (which is the liquid staking token of Stakee).
These tokens are fully backed by the staked coins and can be used within the DeFi ecosystem for various activities such as lending, borrowing, and yield farming.
All liquid staking tokens on the TON network, including STAKED, fall into the Non-Rebase (Value-Accruing) category.
This means their value increases over time with the accumulation of staking rewards, without altering the number of tokens held. This model contrasts with Rebase LSTs (like Lido’s stETH), which increase the token count as rewards are distributed.
The following are some of the benefits of liquid staking:
- Enhanced network security: liquid staking lowers the entry barrier for staking, potentially leading to higher participation rates, which in turn increases security.
- Capital efficiency: Liquid staking promotes flexibility by allowing staked tokens to remain usable within the DeFi ecosystem for various other uses.
- Earning potential: users benefit because they get to earn staking rewards while simultaneously using their derivative tokens in other DeFi protocols to generate additional yield.
- Improved user experience: the availability of more options and overall flexibility makes the TON blockchain more appealing to both retail and institutional investors.
Indeed, liquid staking does introduce additional complexity and there could also be market risks due to fluctuations, but compared to its benefits, many users consider it worth the risks.
STAKED Token
The STAKED token is the cornerstone of Stakee's liquid staking mechanism. It represents the user's staked TON and accumulates value over time. These tokens can be used like regular TON, allowing for transactions, exchanges, and other DeFi activities. When users decide to withdraw their staked assets, the STAKED tokens are burned, and they receive their initial TON plus any accumulated rewards.
STAKED tokens offer flexibility and liquidity, making them an attractive option for investors looking to maximize their returns while retaining the ability to use their assets. This utility is crucial for integrating staking into the broader DeFi ecosystem, providing opportunities beyond mere staking rewards.
Finally, Stakee’s market share is currently smaller than more established platforms, but its rapid growth and innovative approach position it well for future success. However, limited documentation about its roadmap and plans leaves many users uncertain and wary. If the team can focus on rolling out actionable plans soon, that would be even more credibility boost for them.
Relevant Links
Streamlined Approach to Crypto Investing | Flagship FYI
Flagship FYI offers a streamlined approach to cryptocurrency investments, leveraging Telegram for easy access to expert-curated portfolios. The platform provides diverse crypto portfolios, spanning various blockchains, directly within the popular messaging app, making it accessible to a broad user base. With a focus on transparency and security, Flagship aims to simplify crypto investment for both seasoned investors and newcomers.
Disclaimer: Nothing on this site should be construed as a financial investment recommendation. It’s important to understand that investing is a high-risk activity. Investments expose money to potential loss.
