Sui Network Releases SIP 6 Proposal, Will Soon Support Liquidity Staking

Key Points:

• Sui Network will soon support liquidity staking.
• With an update to the SIP 6 improvement proposal, developers will be able to build liquid staking.
• This SIP specifies improvements to the StakedSui structure and related functions and is still pending review.

According to the official announcement, Sui Network will soon support liquidity staking.

With an update to the SIP 6 improvement proposal, developers will be able to build liquid staking. This SIP specifies improvements to the StakedSui structure and related functions and is still pending review.

Liquid Staking is a solution born to support users who can participate in staking on blockchains with a Proof Of Stake consensus mechanism easily, conveniently, and without liquidity lock.

The current approach is constrained in its general composability, which unavoidably leads to less visible Sui Network staking custodial expansions. By evaluating these modifications, this SIP strives not to limit itself to a single domain but rather proposes enhancements that will allow for future expansions to Sui’s staking mechanism.

As Sui Network will continue to evolve over time, a snapshot of the Sui repo will be used when referencing the Sui Framework code. This SIP uses the latest stable version of the mainnet.

According to the proposal, by delegating to a validator, a user receives a StakedSui object that acts as a receipt to their position. This StakedSui object accrues rewards when the epoch advances and can be redeemed at will by its owner.

If the proposal is approved, with the store ability, dApps extending upon Sui staking can now store all StakedSui objects with a shared object and maintain all of their logic on-chain without the need for a centralized, custodial address. The store’s ability inherently presents its own concerns.

Sui Network is one of the blockchains actively expanding its ecosystem. As Coincu reported, it has established a relationship with Oracle Red Bull Racing, one of the most well-known Formula One teams, to provide immersive digital experiences for its followers all around the globe.

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Harold

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