STO announced yesterday its listing on Binance's spot market, which surprised many. Why this project among so many recent ones?
In fact, Chicken Brother conducted research and analysis on the project back in November last year and reached a conclusion. As one of the two star projects in the staking track of Binance investment, the listing on Binance was a natural outcome.
However, recently with the continuous decline of restaking sector tokens, especially the steep drop of Solv and Babylon, a viewpoint has emerged suggesting that restaking is a false demand, creating value out of thin air. Discussions on false TVL on Twitter have also turned into mutual attacks among project teams.
Recently launched restaking tokens like Solv, Babylon, Bedrock, PumpBTC, Pell, etc., have also faced a steep decline.
Asset staking becomes less appealing when you can just use a meme. Coupled with the current market sentiment of panic, there is a consensus that everyone wants to play the quick game. Project tokens should be sold immediately upon listing, and time is of the essence; even pre-authorizations are employed to gain an extra second, which is seen as disrespecting money. The actual trend of most tokens confirms this fact: they peak at launch and then decline all the way.
Is restaking really a false demand? It needs to start from addressing what user pain points.
What is Restaking?
Restaking is a decentralized finance (DeFi) mechanism that allows users to utilize already staked crypto assets (such as Ethereum's ETH) again, providing security, liquidity, or computing resources to other blockchain protocols or networks, thus earning additional rewards while improving capital efficiency.
Addressing the pain points of users' needs
In traditional staking, users lock assets on a blockchain (such as Ethereum PoS) to support network security and earn staking rewards, but these assets are usually unavailable for other uses during the staking period. Restaking breaks this limitation in the following ways:
Asset Reuse: Users will restake their staked assets into a restaking protocol (such as EigenLayer, StakeStone), providing services for other protocols (such as Layer 2, Oracles, Data Availability Layers).
Shared Security: The restaking protocol provides shared security for multiple decentralized networks by aggregating staked assets, reducing the launch costs of new protocols.
Liquidity Support: Through liquid staking tokens (such as StakeStone's STONE), users can continue to use these assets in the DeFi ecosystem, participating in lending, trading, and other activities.
StakeStone Protocol
StakeStone is a decentralized full-chain liquidity infrastructure protocol aimed at revolutionizing efficient, organic, and sustainable liquidity distribution across blockchain networks. By leveraging its full-chain architecture, StakeStone achieves optimized yield generation, full-chain liquidity supply, and flexible asset management. The protocol introduces STONE (a yield-bearing ETH), SBTC, and STONEBTC (which are fully liquid BTC and yield-bearing BTC, respectively), as well as LiquidityPad, enabling users to unlock full-chain liquidity while earning optimized and sustainable returns.
Staking Abstraction Layer
The staking abstraction layer is a technical framework or protocol layer that sits between users/applications and the underlying blockchain staking mechanisms. It simplifies operations and standardizes staking services for users and developers by encapsulating the underlying details of staking (such as node operation, validator management, reward distribution, etc.). Similar to the concept of 'abstraction layers' in computer science, the staking abstraction layer shields users from the complexities of blockchain protocols, allowing them to participate without needing to deeply understand the staking rules of each chain.
StakeStone provides a full-chain staking abstraction layer, allowing users to easily choose to 'eat fish in multiple ways' with STONE without needing to understand the staking rules of each chain.
Conclusion
As can be seen, the restaking abstraction layer shields users from the complexities of various blockchain protocols, allowing them to participate in restaking and 'eating fish in multiple ways' without needing to understand staking rules, thus lowering the threshold and increasing asset utilization.
With the listing of StakeStone on Binance's spot market, it has given a strong boost to the restaking sector, potentially leading to a revival and value recovery in the restaking space.
For yield farmers, the endpoint is staking, which significantly increases the utilization of assets. 'Eating fish in multiple ways' will never go out of style.
Even Sun is working hard to open 6 small accounts for 'eating fish in multiple ways' through restaking; we certainly can't fall behind.
