The Ronin Network, an Ethereum-based platform, has introduced a new feature called Liquid RON, which offers a flexible approach to staking for RON token holders. This feature allows users to deposit RON and receive tradeable tokens in return, enabling them to stake their assets while keeping them liquid. In this article, we will take a closer look at how Liquid RON works and how you can get started.
What Is Liquid RON?
Liquid RON is a vault system based on the ERC-4626 token standard. This standard governs how tokenized vaults operate, allowing users to deposit one type of token and receive another token representing their stake in a larger pool. In the case of Liquid RON, users deposit RON into a specialized vault and receive Liquid RON tokens in return, which represent their share in the Ronin Network’s validation process.
The vault automatically stakes the deposited RON, harvests and compounds rewards without manual intervention, allowing users to benefit from staking while retaining the freedom to use their tokens. Additionally, the vault automatically harvests rewards each day, increasing the total RON balance and consequently the value of Liquid RON tokens over time.
How Does Liquid RON Work?
- Deposit RON: Users transfer RON tokens into the Liquid RON vault either through the deposit function or standard ERC-4626 methods.
- Receive Liquid RON: After depositing RON, users receive Liquid RON tokens, confirming their participation in the Ronin Network’s validation process.
- Stake and Harvest: The vault automatically stakes the deposited RON, harvests rewards, and compounds them regularly.
- Transfer and Use: Liquid RON tokens can be freely transferred and used in other DeFi protocols on the Ronin Network without lock-up periods.
The Liquid RON protocol has undergone an audit through Code4rena to ensure its security and reliability.
Why Liquid RON Stands Out
- Liquidity: Liquid RON tokens can be freely moved, traded, or transferred without losing staking rewards.
- Automation: The vault automates essential tasks like harvesting, compounding, and distributing rewards.
- Compatibility: By embracing the ERC-4626 standard, Liquid RON can interact smoothly with other DeFi platforms on the Ronin network.
- Efficient Capital Use: Users can earn staking rewards while potentially earning more from other DeFi opportunities that accept Liquid RON tokens.
The Liquid RON vault has simple fee structures, including a deposit fee and a performance fee that goes to the treasury when rewards are claimed.
Getting Started With Liquid RON
- Acquire RON Tokens: Purchase RON tokens on cryptocurrency exchanges like Binance, Coinbase, or KuCoin.
- Connect a Ronin Wallet: Visit the Liquid RON platform and connect your wallet.
- Deposit the RON: Send RON tokens into the vault using the deposit command or ERC-4626 functions.
- Receive Liquid RON: Liquid RON tokens will appear in your wallet, reflecting your stake in the network.
Liquid RON tokens appreciate over time, allowing users to withdraw more RON than initially deposited when redeeming them, assuming the vault has accrued staking rewards.
With its flexibility and user-friendly features, Liquid RON offers a unique and efficient way for users to stake their assets on the Ronin Network.