Types of Staking Pools

We wish to expand our staking pools to include a diverse variety of tokens that can cater to the requirements of different categories of users. This can happen through:

a) Staking Pools for Institutional Investors

Institutional investors, especially ones that have issued ETFs, hold a significant number of crypto assets. Arithmic’s MSPs can accept such deposits and provide a guaranteed return on institutional holdings. Moreover, due to the diversification of portfolios in these pools, the associated risk is mitigated and stable returns can be earned - a feature that is extremely rare in crypto markets that are notably volatile.

b) Memecoin Pools For retail degen investors who prefer to invest and profit from memecoins, Arithmic can create memecoin pools that will include hundreds of traditional and upcoming memecoins. Pooling a large number of such assets ensures that even if one memecoin succeeds, the entire pool’s yield is boosted. Subsequently, the yield can be provided in the form of the outperforming memecoin.

c) Staking Pools for RWA tokens

Recently, there has been institutional interest in tokenized treasury funds. For example, BlackRock has its own tokenized treasury funds on public blockchains, represented by its own token, $BUIDL. Given that the underlying asset is the U.S. Treasury, these funds can provide stable returns akin to the risk-free rate that Treasury bonds provide in Centralized Finance (CeFi). The tokens that these funds issue can, in turn, be accepted as deposits into Arithmic’s MSPs where users can enjoy a higher yield from a diversified pool of assets and receive rewards in multiple types of tokens.

What these different varieties of staking pools stand to show is that the applications of Arithmic’s MSPs are numerous and can be a lucrative yield-bearing mechanism, especially during bull markets. In the upcoming cycle, LSTs and LRTs are expected to proliferate at a staggering pace and Arithmic MSPs can be an instrument that combines all such leading tokens to create significant value for our users, investors and the network itself.