Introducing stONE — the first liquid staking token for Harmony ONE
Tranquil stONE (HRC20 token) is a liquid staking derivative, which allows users to stake their ONE tokens with validators, helping secure the network and earn staking rewards. Unlike traditional staking, stONE can be used in DeFi dapps such as Tranquil Lending and earn additional yield. The stONE token also can be swapped quickly for ONE without the long undelegation wait time.
At launch, we will delegate ONEs staked with stONE to a handpicked list of 20 validators, but in the long run, we want to use stONE to help improve the decentralization of the Harmony blockchain by onboarding a diverse set of validators.
Our long term vision for stONE is for it to replace ONE as the currency of choice within Harmony. We aim to increase the utility of stONE across the entire ecosystem so that holders can receive staking rewards while also taking advantage of the yields and growing capabilities of DeFi applications on Harmony.
Visit https://tranquil.finance to start staking your ONE when we launch!
Staking or delegating ONE currently gives a 9–10% yield from staking rewards. However, a user who wishes to use ONE with DeFi applications, like Tranquil Lending, will not be able to receive these rewards, which erodes the value of their ONE holdings through inflation.
Moreover, Harmony has a lengthy undelegation time of several days, which further increases the friction of staking ONE versus using it with DeFi applications.
Our liquid staking token, stONE, solves these problems by letting the user stake their ONE for rewards, while at the same time receiving a token (stONE) that can be used with in DeFi to earn even more yield.
Furthermore, the stONE backend autocompounds all ONE rewards every hour for you. It is also more tax efficient, as in traditional staking, you create a taxable event every time you collect and compound your rewards.
Instantly Swap for ONE
Additionally, you can become a liquidity provider for the stONE/ONE pair, allowing you to earn trading fees and rewards while creating a liquid market for this trade.
Collateral and Lending
You will also be able to lend and borrow stONE on Tranquil Lending and use it as collateral to borrow other assets, like stablecoins. You can earn interest and TRANQ rewards while being able to tap into the equity of your ONE holdings!
How It Works
Compared to delegating to a validator node normally, the user instead deposits their ONE to a smart contract for stONE. The stONE backend will then delegate the ONE to a diversified list of validators based on their staking weight.
The exchange rate for stONE to ONE will gradually increase over time as staking rewards are earned. At a later date, the user can burn their stONE to start an undelegation process and receive their original ONEs plus the earned rewards. The Tranquil protocol takes a 10% fee from the earned rewards.
Please visit our project docs for more details.
While our short term goal is the smooth and stable launch of stONE to validate the system and gain traction, we have an incredibly ambitious roadmap for the project.
Build Utility for stONE
To realize our vision of mass adoption and becoming the currency of choice on Harmony, we aim to build additional utility for stONE throughout the DeFi ecosystem through partnerships and building additional features.
A more close term target is building liquidity for the most common trading pairs, so stONE holders can smoothly perform trades with low slippage without having to swap to ONE.
Validators and Decentralization
Although we are launching with a handpicked list of validators, we are ardent supporters of decentralization. After we validate and get adoption for stONE, we aim to create a more formal system for onboarding additional validators in a way that minimizes trust and promotes decentralization.
We also realize this job is probably too great for us alone, and we will work very closely with both the community and Harmony team to help the entire network prosper.
We will officially launch stONE on mainnet at 7:00am PST, 12/20/2021. You will be able to start staking at https://app.tranquil.finance.
Additionally, Tranquil will offer an incentivized stONE-ONE pool for Sushiswap, as well as an incentivized stONE lending/borrow market. You will be able to earn extra rewards for stONE on top of the normal staking rewards!