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Home >Markets >Cryptocurrency >CoinDCX launches ethereum-backed Liqueth token to make staking accessible

Cryptocurrency exchange, CoinDCX, has launched a new token, Liqueth (LQTH), a bond-backed token based on a proof of stake (PoS) reserve protocol that aims to make staking accessible for Indian crypto community. Staking is the process a wallet uses to validate transactions and award the node that adds a new block of transactions to the blockchain.

Liqueth will allow users to earn staking rewards backed by ETH or Ethereum 2.0.

As a tokenized asset, LQTH will be generated and transferred to stakers in a 1:1 ratio for every ETH staked through CoinDCX. LQTH is an ERC-20 token and will only be minted once the ETH locked in CoinDCX is sent for validator creation.

The company will cover all validator operating expenses, and 100% of the on-chain staking rewards will be distributed to users in the form of ETH.

CEO and co-founder of CoinDCX Sumit Gupta, said: “We want to make staking very simple and accessible for our users, which is why we are providing an ETH staking facility to anyone who holds at least 0.1 ETH in their CoinDCX wallet. Ultimately, we believe that this will allow our users to unlock the full earning potential of digital assets—by more actively participating in the token economy and the DeFi space, as we move further and further away from cryptocurrency’s role as a speculative investment."

The Ethereum network is one of the largest and most widely used public, open-source blockchain networks in the world that was built to allow developers to create and deploy decentralized applications using smart contracts.

ETH 2.0 is the long-awaited upgrade to the Ethereum network that promises to improve the network’s scalability, speed, efficiency, and sustainability without sacrificing security and decentralization. The minimum amount of ETH required to stake directly on the ETH network to earn rewards is 32 ETH.

“The current deposit contract for ETH 2.0 works only one way—users can only deposit ETH but will not be able to withdraw it until ETH 2.0 is completely launched, which might take a few years. We aim to lower the barriers to staking by providing a highly liquid, smart-contract-driven solution. Since the announcement of ETH 2.0, while many aspire to participate in staking, only a few holds the minimum required 32 ETH or possess adequate knowledge for setting up the system," said Neeraj Khandelwal, co-founder, CoinDCX.

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