Bitcoin (BTC) first drew attention to the Proof of Work (PoW) consensus algorithm, a process that demonstrated that users can maintain a secure and decentralized blockchain at the expense of large amounts of energy. According to history, Bitcoin grew in popularity and had trouble scaling to accommodate the huge number of transactions required. Recognizing the gap in technology, alternatives have been developed, the most famous of which is Proof of Stake (PoS).
With staking, holders of crypto assets can participate in the process of verifying transactions by locking their funds. Each participant will receive compensation proportional to the amount allocated, which eliminates the need for very intensive operations. Although it is a positive step for user adoption, the process is still far from ideal.
Currently, a major marketing concern is the delinking period, which may require an investor to wait up to 28 days (for some protocols) between when their token is sold when it is returned to the user’s wallet. Of course, the de-linking period has proven to be only the beginning, with some centralized exchanges adding lock-in periods on top of the hold period, and some may add another 30 days or more. Punishment? Due to the volatility of the cryptocurrency, some investors have been forced to remain idle as the prices of their assets are dropping right before their eyes.
For this reason, liquidity trading has proliferated in order to ensure that investors have access to their money even when they are exposed to risk. Under this setup, liquidity is improved, since funds can remain in escrow but are no longer ‘locked’ and cannot be accessed as they would if they would remain at the point of sale. To achieve this, the Liquid Staking Project pilot team introduced a series of IOU derivative contracts that can be traded at a 1:1 ratio with their underlying assets.
It only became clear that another revolution was needed in the wake of the collapse of the Terra network, as derivatives tied to Ether (ETH) turned out to be worth nothing, unlike pegged ones.
While it is not a perfect solution, the launch of the liquid hurdles has greatly improved the process, increasing liquidity and improving the security of Ethereum 2.0. However, this raised the question for the community, “What’s next?”
XGo, a team aimed at accelerating the world’s decentralized financial future, aims to provide an answer to this question throughout 2022. After several rounds of development and battle testing, XGo has revealed the solution, Superfluid Rewards, the next logical evolution of the bet.
To achieve this, XGo Superfluid proposes a model without restrictions that can be traded in and out of any positions and completely without derivative wedges. The intent is that by providing all these features, Superfluid can enable people to generate returns directly from their personal XGo wallet without taking any unnecessary risks. This means that unlike traditional staking offers, users have the option to deposit and withdraw at their convenience.
More information from XGO here
To illustrate the difference this development will make, a member of the XGo team shared:
“More than 20 days of inability to move assets has a negative impact on portfolio management. The inability to quickly move one’s assets if the price of the token capitulates or worse, if the protocol is compromised, is a limiting factor for users when it comes to The order for mass adoption of storage.”
Given that the world is getting into the predicament of Web2.5, restrictions like the ones mentioned above need to be improved to meet the needs of the broader crypto community. If not, foreplay risks being practical for a whale rather than the average person.
From Web2.5 to Web3
So far, XGo recognizes the launch of Superfluid, a product completely unheard of in the market today, as its most significant achievement.
Over the next 12 months, XGo aims to continue positioning itself as a Web2.5 bridge with the ultimate goal of preparing people for everyday use of the blockchain. Although XGo was born as a trading venue with its flagship Superfluid offering, there are many additional productivity products in its roadmap that are set to build an environment that promotes widespread blockchain adoption now and in the future.