In the evolving landscape of decentralized finance (DeFi), Humanode is set to introduce a new staking model: Biometric-based Sybil resistant Nonlinear Liquidity Staking. With the deployment of Impossible Finance and Occam DEXes on the Humanode chain, we are elated to announce the launch of Nonlinear Liquidity Staking on Humanode.
This sybil-resistant approach, powered by our biomapping technology, heralds a new era in liquidity pooling and reward distribution. Here’s a closer look at what this entails:
Understanding Sybil resistant Nonlinear Liquidity Staking
Traditional staking methods are directly proportional to the amount staked, often leaving smaller participants with a minimal share of the rewards. Additionally, Sybil attacks pose a significant threat to the security and integrity of decentralized systems, especially to the DeFi ecosystem. While Proof of Stake(PoS), Proof of Work (PoW), and Proof of Burn (PoB) are considered promising in deterring Sybil attacks, they are not Sybil Proof and have limitations.
Humanode disrupts this imbalance with a Sybil-resistant Nonlinear Liquidity Staking model.
Fundamental parameters of Nonlinear LP staking model
- Formula used to calculate rewards = x^(3/4)
- Rewards = Fixed at 1 HMND per block for 6 months
- Staking period = November 14th, 2023 to May 14th, 2024
Step-by-step guides to start staking:
In-depth details on How Nonlinear liquidity staking works.
Key highlights of the biometric-based LP staking model
1. Sybil resistant: At the core of Humanode's staking sample is cryptobiometrics, ensuring one person, one account – a solid defense against Sybil attacks. This authentication guarantees a fair and unique representation in the staking pool. This means that participants no longer need to hold a large number of tokens or consume a high amount of energy like in PoS or PoW to mitigate the possibility of Sybil attacks.
2. Nonlinear reward distribution: The APR for stakers is determined using a root-based formula x^(3/4), which results in a more balanced allocation of rewards across various liquidity sizes. We’re implementing a system where APR decreases gradually as the provider's share in the pool increases. Check it out from the example in this article. This encourages participation from a wide range of liquidity providers - from those with limited capital to large-scale holders, ensuring a diverse and healthy liquidity pool.
3. Pools secured by a blockchain of unique humans: Powered by over 300 unique and equal validators, Humanode ensures robust security for all staked assets thanks to one of the highest Nakamoto coefficients of 100+.
4. Higher Yields: One of the standout features of Humanode’s Nonlinear Liquidity Staking model is the enhanced APR for small-scale liquidity providers. This approach democratizes the staking rewards, allowing even participants with modest investments to enjoy a high yield. This is particularly beneficial for those just starting in the DeFi space.
Dive deeper into Humanode's Nonlinear liquidity staking
For a thorough understanding of how Nonlinear liquidity staking reshapes the staking landscape, explore our comprehensive article on the workings of the Nonlinear liquidity staking model.
Getting started with Sybil resistant Nonlinear LP staking
With staking now live, those keen on engaging with Humanode’s Nonlinear Liquidity Staking can begin by adding liquidity and participating in staking. No matter the size of your contribution, our model is tailored to ensure every asset is impactful and enriches the ecosystem. For starters, incentivized staking will cover the WeHMND/USDC pair - on Humanode EVM.
Ready to start staking?