In the innovative sphere of cryptocurrency, SwissBorg is excited to announce our collaboration with Kiln. This partnership will introduce an elevated staking and restaking experience for our users. This partnership underscores our commitment to enhancing the value and security of blockchain investments through state-of-the-art technology and community-driven initiatives.
Understanding Staking and Restaking
Staking in cryptocurrency refers to the process of holding and locking a certain amount of digital assets in a cryptocurrency wallet to support the operations and security of a blockchain network. Essentially, it involves participants committing their crypto holdings to back the network’s consensus mechanism, which is particularly common in blockchains that use the Proof of Stake (PoS) or related algorithms. Nodes, which are computers that connect to the network and support it by validating and relaying transactions, play a critical role in this process. By staking their tokens and potentially running nodes, participants can earn rewards, similar to interest in a savings account, as compensation for their contribution to the network's stability and security. Staking is recognised as one of the safest and most reliable methods of earning rewards in the crypto domain. It derives value directly from blockchain-native currency inflation and transaction fees. This system not only aids in the validation of transactions and maintenance of the blockchain but also incentivises token holders by offering them a way to earn additional tokens over time based on the amount they have staked.
Restaking takes this concept further by utilising existing staked assets, such as ETH, to secure additional applications, referred to as AVSs. This innovative approach, pioneered by EigenLayer, rewards validators for their expanded service, enhancing the utility and interconnectedness of the Ethereum ecosystem.
EigenLayer: A New Dimension of Restaking
EigenLayer introduced restaking on Ethereum to allow ETH stakers to leverage their stakes to secure other protocols without additional collateral. This creates a decentralised trust marketplace, enriching the Ethereum landscape with more robust and efficient connections between restakers, operators, and builders.
The Kiln Integration
Kiln, the largest independent node operator on Ethereum, has integrated one-click native restaking into its dashboard, breaking down barriers to entry with no minimum threshold and making restaking accessible to all. By operating different AVSs, Kiln provides users with diverse strategies to secure multiple services and ensures only the most viable AVS projects are selected through rigorous evaluation.
Why engage in restaking now?
Restaking before the mainnet launch of EigenLayer AVSs is a strategic move to signal support for the protocol and accumulate EigenLayer Restaked Points. This not only amplifies the economic utility of staked ETH but also strengthens the broader ecosystem.
Navigating the risks
While restaking opens new avenues for rewards, it also introduces specific risks, including potential penalties from both Ethereum and AVS protocols. Awareness and understanding of these risks are crucial as we move towards a more interconnected DeFi landscape.
Kiln: A pillar of trust and innovation
Kiln stands at the forefront of enterprise-grade staking solutions, managing over $7 billion in stakes and operating a sophisticated multi-cloud, multi-region infrastructure. Their commitment to security and innovation is further emphasised by their SOC2 Type 2 certification, making them a trusted partner in the staking ecosystem.
Staking Made Simple with SwissBorg and Kiln
This collaboration between SwissBorg and Kiln heralds a new era of staking and restaking, simplifying the process while maximising the potential rewards for our users. By integrating Kiln's advanced restaking capabilities, SwissBorg is making it easier than ever for users to participate in the benefits of staking and restaking directly through our in-app Earn Program. Our mutual goal is to democratise access to these innovative blockchain functionalities, ensuring our community not only grows in number but also in knowledge and investment sophistication.
As we continue to explore and expand these capabilities, SwissBorg is dedicated to providing our users with the tools and insights needed to confidently navigate the complex world of cryptocurrency investing. Join us in embracing this new frontier of staking and restaking, and let's build a stronger, more secure blockchain ecosystem together.
