Stake.link Sets the Stage for Cross-Chain LINK Staking on Arbitrum, Attacking Gas Fee Challenges

The delegated liquid staking framework designed for the Chainlink ecosystem has rolled out cross-chain staking capabilities on Stake.link , a Layer-2 solution built on the Ethereum blockchain. This initiative by Stake.link not only aims to broaden its influence but also to enhance the overall Chainlink interaction experience while addressing the high gas fee dilemma. Arbitrum The leap to cross-chain functionality on Arbitrum followed a recent decision made by the Stake.link Governance Council. Operating as a Decentralized Autonomous Organization (DAO), Stake.link is overseen by a council made up of seven members, including Chainlink node operators and two representatives from the community. For a proposal, referred to as an SLURP, to pass, a simple majority of four out of seven votes is needed. staking On January 24, a proposal to enable Stake.link's deployment on Arbitrum was put to a vote and later passed with an overwhelming 6-0 approval just a week afterward. Presently, the platform secures 45 million LINK tokens for its feed.

With the introduction of Chainlink Staking v0.2 in December 2023, users were finally able to withdraw their LINK alongside accrued rewards. That said, executing these transactions can become quite expensive, particularly if done separately, and this cost is anticipated to rise in the future.

Jonny Huxtable, the CEO of LinkPool and a key founding member of Stake.link, shared with Metaverse Post, \"By rolling out cross-chain staking on Arbitrum, Chainlink community members will experience numerous advantages, particularly a significant drop in gas expenses related to staking and withdrawing LINK tokens, including the rewards from staked LINK. Utilizing Arbitrum grants LINK stakers a more efficient and affordable staking journey compared to working on the Ethereum network.\"

Stake.link streamlines contributions from Chainlink community stakeholders by allowing them to stake LINK as collateral with 15 leading Chainlink node operators, earning rewards in the form of stLINK, which serves as the protocol's liquid staking receipt.

With stLINK, users enjoy a diverse staking reward that comes from both the Chainlink Community Staking Pool and the Node Operator Staking Pool. They also have the chance to engage in liquidity provision by pooling their stLINK in the Curve Finance stLINK/LINK pool, while their staked LINK continues to earn rewards from node operators.

Huxtable added, \"Rather than manually watching the staking page, hoping to secure a position when the Community Pool reopens, stake.link automates this process for LINK holders by staking their deposited LINK into the stake.link Priority Pool, a dedicated area for LINK tokens via smart contract automation. This ensures a smooth and worry-free, 'set and forget' staking experience.\"

Staking on Arbitrum: A Step Towards Greater Accessibility and Efficiency DeFi activities In the last 14 months, the uptake for Chainlink staking on the mainnet has soared, leading to issues for everyday users who face Ethereum's congestion and soaring gas fees. To tackle these challenges, Stake.link is now providing an option to stake LINK tokens on Arbitrum, targeting a reduction in costs and a boost in user accessibility.

By branching out to Arbitrum, users are now able to stake both LINK tokens and Stake.link's SDL governance token, earning an NFT called reSDL which symbolizes staked SDL. Additionally, users can bridge their stLINK receipts to convert them into wrapped staked LINK (wstLINK) tokens on Arbitrum.

Huxtable explained, \"Stakers on Stake.link can benefit from rewards from both Chainlink Staking Pools—the Community Staking Pool and the Node Operator Staking Pool. The Node Operator Staking Pool provides a higher reward rate while incurring a 4% delegation fee on all rewards obtained from the Community Staking Pool.\"

"This innovative reward structure unique to stake.link results in an expected aggregate reward rate of about 8.36% for stakers, which merges the community pool’s 4.32% with the node operator pool’s 12.37%, after deducting protocol fees. This rate surpasses the 4.32% effective staking rate for Chainlink as of February 2024,\" added Huxtable. Ethereum This strategic move not only enhances the staking experience for the Chainlink community but also opens doors to yield-generating activities within DeFi on Arbitrum. Moreover, Stake.link benefits from its partnership with Arbitrum, which offers funding opportunities for initiatives launched on its infrastructure.

As the sole third-party liquid staking solution within the Chainlink ecosystem, Stake.link remains committed to delivering the highest LINK staking rewards on the market. This expansion is vital for Chainlink's progression, an essential element of the broader DeFi and Onchain Finance landscape.

The rollout of cross-chain LINK staking signifies a crucial advancement in Stake.link's objective of making staking more efficient and accessible within the Chainlink ecosystem, ultimately bolstering the overall growth and security of the network.

Huxtable emphasized, \"In order to fulfill Chainlink’s vision of offering Oracle services across both permissioned and permissionless blockchains, it is essential to expand LINK Staking to additional blockchains, which ensures solid security for Decentralized Oracle Networks (DONs). The launch on Arbitrum is a significant landmark, marking the first occasion of LINK Staking crossing over blockchain boundaries. This strategic growth lays the groundwork for the security infrastructure necessary to support the global financial sector.\"

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Victor is a Managing Tech Editor and Writer at Metaverse Post, focusing on topics like artificial intelligence, cryptocurrency, data science, the metaverse, and enterprise cybersecurity. With half a decade of expertise in the media and AI sectors, he's written for esteemed platforms like VentureBeat, DatatechVibe, and Analytics India Magazine. Additionally, as a media mentor at prestigious institutions such as Oxford and USC and holding a Master's degree in data science and analytics, Victor remains committed to keeping pace with the latest trends. Web3 ecosystem He provides readers with the freshest and most insightful updates from the Tech and Web3 realms.

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