CoinDCX to Launch 1:1 ETH-Backed Token in January 2021, Enhancing Liquidity and Staking Rewards

CoinDCX to Launch 1:1 ETH-Backed Token in January 2021, Enhancing Liquidity and Staking Rewards

Mumbai, December 16, 2020: CoinDCX, India’s largest cryptocurrency exchange, has announced its plans to launch a 1:1 Ethereum-backed token to enhance liquidity for Ethereum (ETH) staked holders. This new token will be liquid and tradeable on the CoinDCX markets, providing seamless access to ETH 2.0 staking rewards and boosting liquidity in the Ethereum network.

What is the 1:1 ETH-Backed Token?

CoinDCX’s new ETH-backed token is a strategic move to solve the liquidity issues commonly faced by those who stake their Ethereum in ETH 2.0. With the increasing interest in Ethereum staking, CoinDCX aims to allow users to stake their ETH while still retaining access to liquidity. The new token will be backed 1:1 by Ethereum, enabling users to participate in staking while being able to trade these tokens on CoinDCX markets.

The token will allow Ethereum holders to stake their assets while earning staking rewards (currently estimated at 15-20% annually as per the Ethereum 2.0 blockchain’s staking rewards) without being locked into an illiquid asset. CoinDCX aims to launch the token in the last week of January 2021, and the tokens will be available to all Ethereum stakers, both current and future.

Community Engagement: Name and Logo Voting

To engage the community, CoinDCX will involve its users in the process of choosing a name and logo for the new token. Community-led activities will be organized before the official launch, allowing users to take part in defining the token’s identity. This user-centric approach will help foster greater participation and excitement around the launch.

Benefits of the ETH-Backed Token

Once launched, CoinDCX’s ETH-backed token will offer several key benefits for its users:

1. Staking Rewards & Liquidity: Users can earn staking rewards while retaining liquidity. With 15-20% rewards expected on Ethereum 2.0, the ETH-backed token offers the best of both worlds—staking rewards and the flexibility to trade.

2. Seamless Trading: The token will be tradeable on CoinDCX markets, allowing users to easily enter and exit their positions without waiting for the completion of the staking process. This creates a liquid staking solution that many users have been waiting for.

3. Airdrops, Discounts, and Other Perks: Token holders will receive various benefits, including discounts on trading fees, exclusive airdrops, and other promotions, further incentivizing participation in the staking program.

4. Loan Facility: CoinDCX will also offer collateralized loan facilities where users can borrow stablecoins backed by their staked ETH. This feature will allow users to access liquidity without needing to liquidate their staked assets.

5. Future Utility: Once the target of 2000 ETH ($1 million worth) is met, the ETH-backed token will evolve into a utility token within the CoinDCX ecosystem. This token will have additional benefits and use cases within the exchange, allowing for enhanced user interaction and participation.

How Does the ETH 2.0 Staking Work?

CoinDCX’s ETH staking allows users to stake Ethereum with a minimum of just 0.1 ETH, making it accessible for all users, whether they are new to cryptocurrency or experienced investors. Once users stake their Ethereum, they are automatically eligible to receive Ethereum 2.0 rewards. However, until now, the lack of liquidity in staked ETH has been a challenge for many.

By introducing the ETH-backed token, CoinDCX offers a solution that ensures users can earn rewards while retaining flexibility. This means that users can still hold and trade their assets, all while benefiting from Ethereum 2.0 staking rewards.

A Strong Partnership with Staked

To support the ETH 2.0 staking process, CoinDCX has partnered with Staked, a U.S.-based non-custodial staking service. Staked provides the infrastructure needed to run Ethereum 2.0 validators and ensures the staking process is efficient, secure, and scalable.

Tim Ogilvie, CEO and Co-Founder of Staked, shared his excitement about the partnership:

“We are thrilled to extend our support to CoinDCX in such a way that the exchange’s users can now take advantage of our staking infrastructure to participate in Ethereum’s major upgrade.”

Staked’s infrastructure will ensure that CoinDCX’s users receive a seamless and secure staking experience. The partnership highlights the importance of collaboration and trust between industry leaders to bring innovative solutions to the crypto space.

CoinDCX’s Commitment to the Crypto Community

CoinDCX continues to demonstrate its commitment to enhancing the cryptocurrency ecosystem, particularly in India. As India’s largest cryptocurrency exchange, CoinDCX has long been at the forefront of innovation and adoption in the space. The introduction of the ETH-backed token and its collaboration with Staked will help accelerate the adoption of Ethereum 2.0 staking and provide enhanced benefits for users.

CoinDCX aims to make Ethereum staking more accessible, more liquid, and more rewarding for users. With this new token, the exchange is stepping up its efforts to bring the best of DeFi, staking rewards, and liquidity to its users.

Conclusion: The Future of Ethereum Staking and CoinDCX

With Ethereum 2.0 already gaining traction, CoinDCX’s launch of the ETH-backed token is a critical move that will not only empower Ethereum holders but also create new opportunities for DeFi enthusiasts and crypto investors. The ETH-backed token will allow users to stake ETH and continue trading seamlessly while reaping the benefits of Ethereum 2.0 staking rewards.

The community-driven approach, including voting for the token’s name and logo, ensures that users remain at the heart of this launch. The upcoming whitepaper, set to be released on January 7, 2021, will detail further benefits and specifications of the token, keeping the community informed and engaged.

As CoinDCX continues to innovate, Ethereum staking becomes more accessible, and users will soon enjoy a seamless experience in both staking and trading on the platform. The future of ETH staking and the CoinDCX ecosystem looks brighter than ever.

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