The layer 1 blockchain, Sui is introducing liquid staking to its ecosystem. The community has passed SIP-6 (Sui Improvement Proposal) which allows token holders to stake and receive liquid SUI tokens.
Currently, users receive a wrapped token while staking their SUI token. Although this wrapped token can not be traded or transferred. This process essentially takes out SUI’s liquid supply from the ecosystem.
With this upgrade, the wrapped tokens that users receive will be upgraded into a tradable and transferable form. These tokens will be further used to generate extra yields in Sui’s decentralized finance ecosystem.
This functionality will enable SUI’s DeFi ecosystem with more liquidity. It will also allow developers to offer liquid staking applications and financial instruments based upon it.
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The upgrade is currently live on Sui’s testnet. It will be deployed on mainnet once all tests and compatibility issues are fulfilled, says the blogpost.
Sui is a layer 1 blockchain network that is developed by Mysten Labs. It has gained substantial popularity with the SUI token getting listed on Coinbase and several other crypto exchanges.
