Stacks

<h4><strong>Initially, users had to manually harvest and restake their rewards every ALEX cycle, approximately every 3.5 days. This was necessary to benefit from auto-compounding.</strong></h4> 
<p>Recognizing the need for greater convenience, the community called for an auto-compounding solution. In response, AutoALEX (atALEX) was launched in April 2022.</p> 
<h5><strong>Introducing AutoALEX for Seamless Staking</strong></h5> 
<p>According to <a href="https://medium.com/alexgobtc/lialex-introducing-a-rebase-alex-token-95ccfd31fec4" target="_blank" rel="noopener">ALEX’s blog post</a>, atALEX represents ALEX which is permanently staked. When ALEX is staked as atALEX, its intrinsic value consistently increases relative to ALEX with each cycle. This dynamic increase is tied to the ALEX staking yield. Currently, 103,200 ALEX are emitted each cycle as part of staking emissions, distributed proportionally among stakers. So, the APY adjusts inversely with the amount of ALEX staked: more staked ALEX results in a lower APY and vice versa.</p> 
<p>The introduction of atALEXv1 and atALEXv2 marked the creation of permanently staked <a href="https://www.coingecko.com/en/coins/alex-lab" target="_blank" rel="noopener">ALEX</a>. While users could mint ALEX into atALEX, converting atALEX back to ALEX required using the AMM DEX for swapping. Typically, the AMM DEX value closely matched atALEX’s intrinsic value, as deviations quickly corrected through arbitrage.</p> 
<p><img decoding="async" class="wp-image-143473 aligncenter" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/06/cvxxvcxcvxvcxcv-289x300.jpg" alt="" width="481" height="499" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2024/06/cvxxvcxcvxvcxcv-289x300.jpg 289w, https://www.altcoinbuzz.io/wp-content/uploads/2024/06/cvxxvcxcvxvcxcv.jpg 390w" sizes="(max-width: 481px) 100vw, 481px"></p> 
<h6 style="text-align: center;"><strong>Source: <a href="https://x.com/LisaLab_BTC/status/1803396777347051887" target="_blank" rel="noopener">X</a></strong></h6> 
<h6><strong>More About ALEX’s Staking Mechanism</strong></h6> 
<p>Further innovation came with the introduction of LISA, a <a href="https://medium.com/lisalab/lisa-evolves-liquid-staking-across-the-bitcoin-ecosystem-41ccff08a8ac" target="_blank" rel="noopener">liquid staking token</a>, launching the first rebase token within the Stacks ecosystem. <a href="https://www.altcoinbuzz.io/spotlight/what-makes-tectum-softnotes-unique/" target="_blank" rel="noopener">Rebase tokens</a> are unique due to their dynamic supply mechanism. Instead of the intrinsic value increasing, the token supply in the holder’s wallet increases directly. For instance, 1 LiSTX always equals 1 STX. With each rebase event during a Stacks cycle, holders see their LiSTX quantity increase.</p> 
<p><img decoding="async" class="wp-image-143474 aligncenter" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/06/vcxvfdfgd-291x300.jpg" alt="" width="513" height="529" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2024/06/vcxvfdfgd-291x300.jpg 291w, https://www.altcoinbuzz.io/wp-content/uploads/2024/06/vcxvfdfgd.jpg 390w" sizes="(max-width: 513px) 100vw, 513px"></p> 
<h6 style="text-align: center;"><strong>Source: <a href="https://x.com/XverseApp/status/1776973225286848837" target="_blank" rel="noopener">X</a></strong></h6> 
<p>The same principle applies to LiALEX. Additionally, LiALEX can be wrapped into vLiALEX, similar to atALEX, exhibiting a growing intrinsic value. Wrapping LiALEX into vLiALEX is particularly advantageous for DeFi use cases, such as borrowing stablecoins against liquid Stacks as collateral. The growing intrinsic value of vLiALEX increases collateral value over time, enhancing borrowing potential and stability.</p> 
<p><a href="https://www.patreon.com/altcoinbuzz" target="_blank" rel="noopener"><img decoding="async" class="alignnone size-full wp-image-123700" src="https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner.jpg" sizes="(max-width: 1197px) 100vw, 1197px" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner.jpg 1197w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-300x37.jpg 300w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-1024x127.jpg 1024w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-768x95.jpg 768w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-696x86.jpg 696w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-1068x132.jpg 1068w" alt="" width="1197" height="148"></a></p> 
<div class="youtube-embed" data-video_id="YUkeKRaaZBw">
 <iframe title="This is Cardano ADA MAKE-or-BREAK Milestone... 👀" width="696" height="392" src="https://www.youtube.com/embed/YUkeKRaaZBw?start=4&amp;feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div> 
<h6><strong>Disclaimer</strong></h6> 
<p>The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.</p> 
<p>The post <a href="https://www.altcoinbuzz.io/cryptocurrency-news/from-manual-staking-to-autoalex-alex-staking-evolves/">From Manual Staking to AutoALEX: ALEX Staking Evolves</a> appeared first on <a href="https://www.altcoinbuzz.io">Altcoin Buzz</a>.</p>

From Manual Staking to AutoALEX: ALEX Staking Evolves

Altcoin Buzz

Other articles published on Jun 19, 2024

Top Crypto Presale in 2024: MoonBag Raises $2.5 Million in a Month, Will Popcat and Arbitrum Catc...

Bitcoin Whales Unload Over $1B In Shift Towards AI

Martin Shkreli Claims Involvement in Solana-Based Token DJT Amid Speculation of Trump Family Ties

SEC Ends Ethereum 2.0 Probe: What It Means for Ripple vs SEC Lawsuit

BitLen Finance Launches on Core: Transforming DeFi with Groundbreaking Liquidity Hooks

ABS2024 in Taipei: AI, Blockchain, and the Future of Governance, 15,000 Attendees Are Expected

Join our free newsletter for daily crypto updates!