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Liqueth (LQTH): ETH-backed Crypto Token enabling better ETH-2.0 staking

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CoinDCX is overwhelmed and thankful for having such an amazing community of crypto traders and investors! We had made a promise to our community to bring forth an ETH-backed token for the ETH-2.0 stakers on CoinDCX.  As promised, with over 1,000 ETH (currently valued near $2million) being staked, we are here with the launch of our ETH backed token Liqueth (LQTH)

CoinDCX launches Liqueth (LQTH)!

Liqueth (LQTH) is a bond-backed token based on proof of staking reserve protocol. In other words, the crypto token will be generated in a 1:1 ratio for every Ethereum (ETH) staked through CoinDCX. The LQTH token will be an ERC-20 token and will be minted only when ETH is locked in CoinDCX for Ethereum 2.0 (ETH 2.0). 

Liqueth (LQTH) enables our users to take advantage of staking Ethereum (ETH) without any hassles and expenditure. They will get an equivalent amount of LQTH for the amount of ETH they stake on CoinDCX and will be able to: 

  1. Earn interest in ETH based on the LQTH they hold (6-20% APY)
  2. Sell LQTH in the open markets for instant liquidity (Listing coming soon)

For more details behind the need for ETH 2.0, issues with ETH 2.0 staking, and the vision behind Liqueth, read the Liqueth Litepaper.

Properties of the LQTH:

  • Each token is backed by ETH staked in the Beacon Chain.
  • No token is generated extra for founders or teams working on the project.
  • Burns 1:1 with ETH at the time of unlocking ETH from the ETH2.0  withdrawal contract (once live).
  • Holding the LQTH is similar to holding ETH for the long term but with extra interest rewards (6-20% APY ). 

What is ETH2.0?

For a long time Vitalik Buterin, the founder of Ethereum, has claimed that Ethereum is expensive to use as its blockchain has been almost full. The lack of Ethereum’s scalability has continued to be a bottleneck that restrains the addition of more decentralized applications (Dapps) and organizations. This is because the addition of more organizations would only mean making the blockchain more full leading to even higher costs.

Ethereum is one of the popular cryptocurrencies in India and is actively used by investors and traders for crypto investment and ethereum staking. Ethereum 2.0 (ETH 2.0) is a set of upgrades to the Ethereum (ETH) network that is distributed into three phases due to its complexity. This aims to make the network more scalable, secure and sustainable by moving ETH from a proof-of-work network to a proof-of-stake network, which introduces staking, allowing users to stake their ETH and earn rewards.

The minimum amount of ETH required to stake directly on the ETH network to earn rewards is 32 ETH. Since the announcement of the upgrade, many people have staked 32 ETH for participating in staking. Although many aspire to participate, only a few hold the minimum required 32 ETH or adequate knowledge for setting up the system. 

At CoinDCX, we aim to solve the staking challenge by providing a smart-contract-driven solution for our investors and traders. Being the pioneer in the Indian crypto space, CoinDCX supports the ETH 2.0 upgrade. To substantiate the same, we provided an ethereum staking facility to anyone who holds at least 0.1 ETH in their CoinDCX wallet.

Although, the current deposit contract for ETH 2.0 (Beacon Chain) works only one way. Thus, the users can only deposit ETH but won’t be able to withdraw it until ETH 2.0 upgrade makes progress, which might take a few years. To solve this issue, CoinDCX launched Liqueth (LQTH), which is backed by a  1:1 ratio with ETH staked on CoinDCX and transferred to the stakers. CoinDCX plans to open a market to trade LQTH so that holders can liquidate their holdings anytime if they so require. 

Not only are the users able to stake any number of ETH greater than 0.1, but they will also be given the LQTH token, which they can sell anytime, backed by the ETH staked on CoinDCX.

How does Liqueth work? 

If you deposited 10 ETH, you will receive 10 LQTH tokens in your wallet. There might be a slight delay in the transfer of LQTH tokens into your wallet as CoinDCX needs to batch 32 ETH and start a validator before the transfer.

As soon as the LQTH is transferred, you will start receiving ETH as a reward in your wallet for your crypto investment. 

What can you do with your Liqueth (LQTH)?

There are a couple of benefits if you have Liqueth (LQTH) in your CoinDCX wallet:

  • Hold

Holding LQTH in your wallet makes you eligible to receive daily rewards in ETH. 

  • Sell

You can sell your LQTH in open markets and liquidate in case you need some funds. (Listing coming soon on CoinDCX)  

Once Phase 1.5 is completed you will be able to redeem your LQTH tokens for ETH in a 1:1 ratio.

About CoinDCX:

CoinDCX is India’s largest and safest cryptocurrency exchange and top liquidity aggregator in the world. The exchange has instant deposit and withdrawal facilities. The versatile wallet structure provides the best fee structure in the industry. Established in 2018, the exchange is today deemed by many market participants as India’s most trustworthy cryptocurrency exchange.

CoinDCX offers users single-point access to a diverse suite of crypto-based financial products and services:

  • Insta Provides fiat onboarding from INR to crypto 
  • Spot – Gives access to trade cryptocurrencies across 500+ markets 
  • Margin With up to 10x leverage trade across more than 500 markets 
  • LendDecentralized lending service wherein users can earn up to 14% APR 
  • Stake Users can earn passive income by staking their cryptos 
  • FuturesMaximize trading potential with leverage up to 20x 

The exchange has a powerful yet simple interface that provides a fast and reliable cryptocurrency trading experience for professional and novice customers alike. CoinDCX is backed by world-class security processes which include a safe & instant KYC verification process and insurance cover to safeguard users’ funds.

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