CoinDCX to launch Liquid ETH-backed token for users

Indian cryptocurrency exchange startup CoinDCX has announced that it is set to issue 1:1 token Ethereum token, to all Ethereum staked holders, who have staked and may stake in the future. The token will be issued in the last week of January 2021.

Staking, similar to the trading of cryptocurrencies, poses a lesser risk. All you have to do is stake (buy and hold) some coins in order to get added to the mining pool.  

CoinDCX recently launched an ETH staking product where its users can stake ETH for as low as 0.1 ETH. All the users have to do is lock their ETH for staking.

Taking note of the increasing demand from users on ETH2 staking, CoinDCX to launch this token in the last week of January. The company will also release a whitepaper on January 7, 2021.

CoinDCX will organise community-led activities before the launch to come up with a token name and logo. Once the token is launched, it will be available for all the users who have staked ETH and will be staking ETH, in the future. The token will be liquid and will be tradeable on CoinDCX markets. This will allow traders and investors to enter and exit ETH 2 staking seamlessly.

The backed token will be pegged to Ethereum price. The company said that this will be hugely beneficial to every type of Ethereum investors (short or long term).

On one side, investors can earn staking rewards (15-20 percent as per the current ETH2 blockchain staking rewards), and also they can trade in CoinDCX markets. However, there are more benefits in store, once the 2000 ETH target is met, the token will function as a utility token across the CoinDCX ecosystem.

In a statement, Neeraj Khandelwal, Co-founder of CoinDCX, said, “Staking is slated to improve the efficiency and scalability of the Blockchain technology. But the assets locked in staking can cause a liquidity deficit in Cryptocurrency markets. With this token, CoinDCX aims to solve that problem for Ethereum. Staked ETH via CoinDCX will be highly liquid.” 

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Token holders will receive benefits on trading fees, discounts, airdrops, and more which will be enumerated in the whitepaper. CoinDCX will be also providing a loan facility. Users can also get stablecoin backed loans, and can borrow collateral for Margin trades on CoinDCX.

CoinDCX is launching this token which is not only ETH backed, but it is community-backed too. The token is powered by blockchain. U.S-based Staked, which provides non-custodial staking services for institutions and is the leading independent validator for Ethereum 2.0, is partnering with CoinDCX to support Ethereum 2.0 staking.

Tim Ogilvie - Co, Co-founder and CEO of Staked, said, “We are thrilled to extend our support to CoinDCX in such a way that the exchange’s users can now take advantage of our staking infrastructure to participate in Ethereum’s major upgrade.”