Staking to invest

Invest in liquidity to earn an income

Investors may stake digital assets such as crypto currencies, stable coins and Verified cash tokens that are allocated to asset managers for investments in tokenized securities such as tokenized equity, bonds and structured products. This yields a return on investment for such investors we will refer to as liquidity providers.

Liquidity providers can stake in two ways. The first way is to stake digital assets on the Verified Liquidity contract that issues Verified Liquidity tokens to liquidity providers they can trade for capital gains. Assets staked on the Verified Liquidity contract are allocated by Verified governance to licensed asset managers that invest staked assets in tokenized securities to yield a return on investment which is shared with Verified Liquidity token holders.

The second way is for liquidity providers to stake assets on Verified market maker contracts that provide liquidity to liquidity pools of specific tokenized security and cash pairs. In this case also, Verified market maker contracts issue Verified liquidity tokens to liquidity providers. The difference between staking assets in Verified market maker contracts vis a vis staking in Verified liquidity contracts is that the underwriting risk is borne by liquidity providers in the former (market maker contracts) case, while underwriting risk is borne by asset managers in the latter (liquidity contracts) case.

Staking in Verified liquidity

Applications can check tokens accepted for staking with the getSupportedTokens function, or check the support for a specific token with the checkSupportForToken function. Accepted tokens can be staked with the buy function. The number of Verified liquidity tokens issued to an liquidity providers can be checked with the balance function.

Staking in Market makers

Applications can let liquidity providers check the number of available liquidity pools by calling the getPlatforms function which returns the market maker name, address and the ISIN of the tokenized security in the liquidity pool. Liquidity providers can then call the offer function on the market maker contract.