We are excited to finally reveal liquid staking on the Gnosis Beacon Chain (GBC) 🔥
Gnosis Chain users can now mint sGNO when they stake GNO / mGNO tokens and earn up to 18% APR wherever they go in the ecosystem. Staking rewards accrue daily in rGNO tokens, which can be reinvested back into the GBC for a compounding effect.
Start staking your GNO & mGNO now: app.stakewise.io
How to stake your GNO
To receive sGNO and start staking, users must deposit their GNO or mGNO through the StakeWise dashboard. Follow these steps:
- Head to https://app.stakewise.io and connect your wallet
- Switch to the Gnosis Beacon Chain network by clicking on the network button
- Enter the deposit amount into the Stake interface
- Confirm the deposit transaction in your wallet
Once you have completed these steps, you have started staking!
Please note that your wallet must be connected to the Gnosis Chain network — the instructions on how to do this can be found here.
How StakeWise works
sGNO & rGNO tokens
StakeWise uses a dual token model that separates staking deposits and rewards into two separate tokens. This model reflects the dynamic inside the validators and protects staking rewards from arbitrage and dilution when LPing by collecting rewards on the side. It also allows reinvesting the rewards back into staking for a compounding effect.
To illustrate, upon deposit, you will receive sGNO, which is equal 1:1 to GNO and reflects your principal. For example, if you deposit 10 GNO, you will receive 10 sGNO. The 32:1 exchange rate between mGNO and GNO is also preserved so 32 mGNO is 1 sGNO.
Holding sGNO in your wallet or DeFi applications, you will accrue daily staking rewards in rGNO, also equal 1:1 to GNO tokens, reflecting your rewards. For example, at an average APR of 10%, holding 10 sGNO for a year will yield you 1 rGNO. This makes sGNO an interest-bearing token, while rGNO is not.
Both sGNO and rGNO will be redeemable 1:1 for GNO tokens when the withdrawals from the Gnosis Beacon Chain are enabled.
Token liquidity & integrations
StakeWise is planning to deploy liquidity pools for sGNO & rGNO in Curve Finance on the Gnosis Chain. Initial liquidity in the pools will be seeded by the StakeWise DAO as well as the Gnosis DAO, followed by a liquidity bootstrapping program. Once the pools get initial traction, we will kick-start the push for the universal adoption of sGNO & rGNO within the Gnosis Chain ecosystem and beyond.
StakeWise’s decentralized architecture, called Metro, allows external node operators to join its network and run validators on behalf of the protocol’s users. The onboarding process is semi-permissionless, where anyone can apply to become a validator and join the network upon a successful DAO vote. The process is transparent — the steps required for onboarding are outlined here.
To simplify the onboarding of new node operators, the StakeWise core team has open-sourced a set of Helm charts that allow operators to launch a pre-configured and scalable infrastructure for Gnosis Beacon Chain out of the box. It supports switching between the different validator and RPC clients on the fly and is highly robust. Find more information about the onboarding process and the infrastructure package here.
About Gnosis Chain and Gnosis Beacon Chain
Intended to provide interoperability with Ethereum, the two networks aim to create an Ethereum-consistent environment for testing new concepts and facilitating fast and cheap peer-to-peer transactions for real-world use cases. Users can think of the Gnosis Chain as the execution chain (aka Ethereum mainnet) and the Gnosis Beacon Chain as the consensus layer chain (aka Ethereum Beacon Chain).
The key difference between Gnosis networks and Ethereum is the usage of smaller block times and block sizes, and a stable currency (xDAI, a bridged version of DAI) to pay transaction fees. This allows Gnosis networks to offer faster and cheaper transactions and allow usage of applications that would be prohibitively costly on Ethereum.
While GNO staking happens on the Gnosis Beacon Chain, the usage of staked GNO tokens happens on the Gnosis Chain. The latter network is home to many familiar projects like Curve, SushiSwap, 1inch, Perpetual Protocol, Superfluid, clr.fund, Circles UBI, and others.
Liquid GNO staking from StakeWise will be the latest addition to the ecosystem, with sGNO and rGNO tokens in a perfect position to become the backbone of DeFi on the Gnosis Chain.
To explore the stats around Gnosis Beacon Chain check out this Dune dashboard.
StakeWise is a liquid staking protocol on Ethereum and Gnosis Chain. With over 55,000 ETH in TVL and over 4,000 users, StakeWise is the 3rd largest staking protocol on Ethereum. StakeWise’s unique feature is the dual token model that pays rewards earned from staking in a separate token. This allows users to manage their earnings more flexibly, as well as to reinvest income back into staking for a compounding effect.