stXTZ Launches on Etherlink, Expanding Liquid Staking to High-Performance Tezos L2

• stXTZ is now accessible across Etherlink’s expanding DeFi ecosystem, which may include Superlend for borrowing and lending operations.
• Users may continue to receive native tez staking rewards even when they are using Etherlink to interact with high-performance decentralized finance apps.
• While holders of stXTZ will keep 90% of all staking rewards, 10% of the rewards will be collected via a specialized reward-collecting contract that will be owned by the youves DAO.

Contributors to , a robust staking platform based on Tezos that combines rapid liquidity with baking incentives, have introduced stXTZ, the liquid staked tez (XTZ) token, to Etherlink , the Layer 2 blockchain that is compatible with EVMs and powered by Tezos Smart Rollup technology. The token, stXTZ, makes it possible for users who stake on the network to keep their assets in full liquidity. This means that users may continue to receive native tez staking rewards even when they are using Etherlink to interact with high-performance decentralized finance apps.

Solutions such as stETH from Lido, which have become core assets in DeFi ecosystems, have been the driving force behind the fast rise of the worldwide liquid staking industry, which has already surpassed $45 billion. Users are able to concurrently receive staking incentives and preserve asset liquidity with the use of liquid staking tokens, which successfully solve the capital inefficiencies that are present in conventional staking arrangements. Their broad popularity in lending, trading, and yield farming applications may be attributed to the advantageous dual nature of these applications.

On behalf of the youves decentralized autonomous organization (DAO), primary contributors at Ubinetic AG built Stacy.fi, which is powered by Acurast. Following their successful governance approval, the youves decentralized autonomous organization (DAO), which is comprised of all stakers of YOU tokens, is now in charge of managing the stXTZ pool, token, and manager contracts. While holders of stXTZ will keep 90% of all staking rewards, ten percent of the rewards will be collected via a specialized reward-collecting contract that will be owned by the youves DAO.

djangobits, contributor of youves and stacy.fi stated:

“stXTZ from stacy.fi allows DeFi users in the Tezos ecosystem to make use of their Tezos funds in DeFi offers on Tezos L1 and on its rapidly emerging Layer 2 Etherlink, while contributing to the security of the L1 and earning 90% of the potential staking rewards. With liquid staked tez, the ecosystem is ready for the next era of DeFi, not only on the L1, but also on the current and future L2s.

Etherlink’s secure bridging technology is used for the integration, which results in stXTZ tokens being locked on Tezos L1 and ERC-20 compliant proxy tokens being created on Etherlink L2. Real-time price updates for DeFi platforms on Etherlink are provided via a Chainlink-compatible price oracle that is powered by Acurast. These updates are based on the stXTZ staking pool contract that is being used on Tezos L1.

David Relkin, Head of DeFi at Nomadic Labs stated:

“The integration of stXTZ addresses a fundamental challenge for users seeking to earn staking rewards while participating in Layer 2 DeFi. With stXTZ on Etherlink, users can maintain their Tezos staking exposure while benefiting from the enhanced performance and cost-effectiveness of our Layer 2 infrastructure.”

stXTZ is now accessible across Etherlink’s expanding DeFi ecosystem, which may include Superlend for borrowing and lending operations, Curve Finance and IguanaDex for trading stXTZ/WXTZ, Hanji for advanced users and seasoned traders who are looking for a more professional trading experience, and Uniswap V3 through oku.trade, which is Etherlink’s AMM-style trading hub for blue-chip assets.

Based on the Tezos Smart Rollups technology, Etherlink is a Layer 2 blockchain that is compatible with the Ethereum Virtual Machine. It gives developers the ability to deploy any EVM codebase without any problems and to migrate users and assets from Ethereum and other interoperable chains. This makes it possible for users and assets to communicate and move themselves across multiple networks without any problems.

Originally developed by Ubinetic AG, a Swiss company that specializes in providing solutions for web3, Youves is a platform for synthetic assets. On Tezos L1, Youves has developed into a decentralized autonomous organization (DAO). Youves is the largest DeFi Platform on Tezos, with a TVL of more over USD 50 Million. Youves is managed by the Youves DAO. The youves DAO is comprised of those who have YOU tokens.

Acurast is a decentralized physical infrastructure network (DePIN) and a worldwide fleet of cellphones that work together to enable edge computing that is both distributed and secure. In comparison to conventional servers, these devices provide a higher level of security thanks to their integrated TEEs and high-grade HSMs. Beginning as the oracle solution for youves, Acurast is now the driving force behind a number of solutions inside the Tezos ecosystem. These solutions include youves (Oracles), tzBTC Bridge (automation), and stXTZ (staking), and it is rapidly growing into other areas of the ecosystem.