Introduction Guide To Quicksilver


Jul 24, 2023

3 min read

Introduction Guide To Quicksilver

Liquid staking solutions are becoming increasingly popular in the blockchain and PoS (Proof-of-Stake) ecosystem. With traditional staking on PoS networks, your assets are locked in the protocol. Therefore, you're unable to use them while you stake. However, with liquid staking, you can utilize your staked assets in DeFi dApps, etc., while staking your assets.

That brings us to Quicksilver, a Cosmos SDK-built PoS blockchain that allows for scaling and communication with the Cosmos ecosystem through the inter-blockchain communication protocol (IBC). Quiksilver defines itself as a liquid staking zone, in which you can stake with your preferred validator and receive liquid staked assets (qAssets) that can be used for swapping, pooling, lending, and more, while simultaneously earning the original staking APY from securing the network.

The network's native asset $QCK, is used for securing the chain via staking, lets you participate in the governance, and is needed to pay for transactions in the Quicksilver network.

Interchain Accounts

Quicksilver has implemented Interchain Accounts (ICA) to perform critical functions of the protocol. For example, stakers enjoy all the benefits of staking on other networks without leaving QuickSilver. How? The Host chain (Quiksilver) creates a deposit and withdraw account on the Controller chain (i.e., Juno) to handle staking rewards for the delegators.

The Interchain Accounts module enables Cosmos chains to perform specific tasks from chain A to chain B without leaving chain A. The Cosmos Hub, Osmosis, Juno, and Stargaze are the Zones to be onboarded at Genesis, all leveraging ICA.

Liquid Staking

With traditional staking, if stakers want to use DeFi applications, they must unbond their stake, which means they will lose staking rewards and possibly airdrops. Still, they will opt out of their governance rights if they use these assets on a liquid staking protocol.

You can do more with your staked assets when you liquid stake. In the Cosmos Ecosystem, there are numerous examples of liquid staking protocols. Quicksilver's approach, on the other hand, is unique. Users won't need to choose between DeFi or governance; they can engage in both, which will keep users empowered regardless of what they do.

Users' voting rights will be preserved thanks to the governance by proxy feature. The protocol will mirror native chain proposals that allow users to vote. The Quicksilver protocol will then reflect users' votes on behalf of delegations, allowing users to participate in governance from their native chains via Quicksilver. It is worth noting that users are not required to unstake their assets to do so. Only protocol-enabled networks will be able to do so.

The features mentioned above will rely on Interchain Queries to work. Interchain Queries (ICQs) function as follows: a Requesting Chain asks for information from the Target Chain. A relayer sends this request to the Target Chain, which replies by providing proof and information to the Requesting Chain. When liquid staking on Quicksilver, your assets are sent from your wallet to a Quicksilver "account" on the native chain, meaning that your assets don't need to go to Quicksilver to use them; this avoids concentrating assets on the protocol and adds an extra security measure.

Closing thoughts

In conclusion, liquid staking solutions are revolutionizing the blockchain and PoS ecosystem, offering users unprecedented flexibility and utility for their staked assets. Unlike traditional staking, where assets are locked in the protocol, liquid staking allows individuals to stake their assets while simultaneously utilizing them in DeFi dApps and other applications. Quicksilver, a Cosmos SDK-built PoS blockchain, is leading the way as a liquid staking zone, offering stakers the ability to earn staking rewards while using liquid staked assets (qAssets) for various financial activities like swapping, pooling, and lending.

One of Quicksilver's remarkable features is its implementation of Interchain Accounts (ICA), enabling stakers to enjoy the benefits of staking on other networks without leaving Quicksilver. This ensures a seamless and interconnected experience within the broader Cosmos ecosystem. Liquid stakers on Quicksilver retain their governance rights through the governance by proxy feature, allowing them to participate in voting from their native chains. With Interchain Queries (ICQs), Quicksilver effectively facilitates the transfer of assets without concentrating them on the protocol, adding an extra layer of security.

In a world where traditional staking often forces users to choose between DeFi and governance, Quicksilver is a unique solution that empowers users to engage in both aspects simultaneously. By combining the earning potential of staking with the flexibility of liquid assets, Quicksilver offers users a powerful and inclusive platform for managing their assets in the Cosmos ecosystem.

As the blockchain and PoS landscape continue to evolve, liquid staking solutions like Quicksilver are set to play a vital role in shaping the future of decentralized finance. By providing increased accessibility and usability, liquid staking unlocks new possibilities for users and contributes to the ongoing growth and maturation of the broader blockchain ecosystem. With Quicksilver's innovative approach, users can look forward to a future where their staked assets work harder for them, creating exciting opportunities in the decentralized world.

DISCLAIMER: This is not financial advice. Staking, delegation, and cryptocurrencies involve a high degree of risk, and there is always the possibility of loss, including the failure of all staked digital assets. Additionally, delegators are at risk of slashing in case of security or liveness faults on some protocols. We advise you to do your due diligence before choosing a validator.

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