Stepping boldly into the exciting and ever-evolving realm of blockchain technology, K9 Finance, an innovative player in the field of liquid staking derivatives (LSD), is poised to revolutionize industry norms through its forthcoming debut on a prominent layer-2 scalability solution Shibarium.
Liquid staking has gained significant popularity as a solution that enables users to stake their tokens while actively engaging in the security of proof-of-stake blockchains.
This process entails the transformation of staked assets, such as proof-of-stake cryptocurrencies, into more easily tradable and accessible liquid token forms.
Aside from that, liquid staking empowers cryptocurrency holders to stake their assets, contributing to the security of a blockchain network, all while retaining the flexibility to utilize the value of those staked assets for various other activities, including lending and trading.
Ahead of its official launch, International Business Times had an exclusive interview with the pseudonymous founder and developer of K9 Finance Buzz, who was kind enough to provide details about their liquid staking derivatives platform.
“K9 Finance is a liquid staking derivative platform for the Shibarium blockchain. It serves the same role as Lido does for Ethereum, but for Shibarium,” Buzz said.
When asked how will K9 Finance work on Shiba Ecosystem’s L2 solution, Buzz explained: “On Shibarium users delegate BONE to validators to earn a reward and help secure the chain. When doing so, much like other PoS consensus mechanisms, their BONE becomes illiquid and locked.”
K9 Finance presents a host of compelling advantages to users when they delegate to its validators.
Among these is receiving an LSD token called knBONE, which not only represents BONE but is equivalent to the gas fee token of Shibarium on a 1:1 basis.
Furthermore, during the period when users’ tokens are delegated to the validator, they retain the flexibility to deploy their capital in various decentralized finance (DeFi) applications, allowing them to maximize their yield potential.
In the words of Buzz, it’s about earning more and effectively “putting your BONE to work” within the DeFi landscape
Buzz said, “The main benefit of delegating with K9 Finance is that you are keeping your BONE liquid while delegating to a validator. When I look at Ethereum, the main pillars of DeFi are LSD tokens and then lending/borrowing.”
He added, “You can use our LSD token after helping secure the chain to leverage your capital and earn more yield than just delegating offers. This public infrastructure will become a foundation of Real DeFi on Shibarium and I expect other projects, or ours if the DAO deems it appropriate, to build more DeFi products on Shibarium that you’ll be able to use and leverage liquid knBONE.”
In a significant milestone, K9 Finance has secured validator status within the Shibarium network.
Through this users have the opportunity to delegate their assets to K9 Finance’s validator node and, in return, receive the Liquid Staking Derivative (LSD) token, marking the initial phase of our product development.
The second phase, however, promises a lot of potential since it will enable users to “users to delegate to all validators within our ecosystem and allow others to join so that we can continue decentralizing the network in concert with the Shib team.”
When asked about K9 Finance’s role in shaping a thriving DeFi ecosystem on Shibarium, Buzz said, “Right now our roadmap is to complete our product offerings but the DAO will govern the rest of the roadmap.”
Regarding K9 Finance’s contribution to the SHIB token burn, our pseudonymous representative elaborated, “The K9 product serves as a catalyst for Shibarium adoption by providing a DeFi solution. The more users engage with our product, the greater the burn rate of SHIB tokens, with rewards planned for participants in the Shibarium ecosystem.”
