In a newly released report, Swiss cryptocurrency exchange ShapeShift explores the potential role of so-called “staking derivatives” in addressing some of the challenges posed by Proof-of-Stake, or PoS, protocols.
Yield Unchained: Exploring Staking Derivatives shines the spotlight on existing challenges with POS protocols – namely, the opportunity cost that comes with locking up capital in a consensus mechanism. Staking derivatives, the report says, allows users to combine the benefits of staking returns and the ability to deploy their capital in DeFi and other protocols.