1. Staking

The process in which participants lock up a certain amount of cryptocurrency, known as a stake, to support the operations of a blockchain network. Stakers, also known as validators, are chosen to validate transactions and create new blocks in the network, and in return, they receive rewards in the form of additional cryptocurrency.

2. Proof-of-Stake (PoS):

A consensus mechanism utilized by BlastFi and other blockchain networks, where validators are selected to create new blocks and validate transactions based on the amount of cryptocurrency they hold and are willing to stake. Validators are chosen through a deterministic algorithm, and their likelihood of being selected is proportional to the amount of cryptocurrency they have at stake.

3. Tokenized Assets (Liquid Staking Tokens - LST)

Digital representations of staked assets recorded on a blockchain, such as Ethereum. To be specific, for example when users stake ETH on BlastFi platform, they will received an amount of BRES token corresponding to the value of their staked asset. BRES as an LST will allow users to trade or transfer their staked assets while still earning staking rewards through BlastFi's platform. This tokenization process enhances liquidity and accessibility for staked assets.

4. Restaking

Liquid restaking allows users to stake their ETH and support validation on various networks, including Ethereum and other protocols integrated with a restaking protocol. This approach uses Ethereum’s security layer to boost capital efficiency throughout the crypto ecosystem, allowing stakers to earn additional rewards for their validation services.

When restaking, users can deposit their tokens, including those used in liquid staking, allowing them to gain additional profit and invest in other DeFi projects. The restaking concept is close to pooled PoW mining, where miners can simultaneously mine two or more cryptocurrencies without losing the overall hash rate.

Benefits of Restaking:

  • Amplified Earning Potential: By leveraging restaking protocols, users can potentially earn higher returns on their staked assets compared to traditional staking options. This enhanced earning potential stems from the ability to participate in various DeFi activities simultaneously, such as liquidity provision and governance participation.

  • Fortifying Blockchain Security: Contributing staked assets to other platforms strengthens their overall security posture. By increasing the total value locked (TVL) within the protocol, restaking disincentivizes malicious attacks and fosters a more resilient blockchain environment.

  • Unlocking Additional Utility: Restaking goes beyond simply earning passive income. It unlocks additional functionalities for staked assets, enabling users to participate in decentralized governance processes, earn interest on DeFi platforms, and potentially access exclusive features offered by specific protocols.

5. Cryptoeconomic Security

A security model employed by BlastFi and other blockchain networks, utilizing economic incentives and cryptographic mechanisms to ensure the proper functioning and security of the network. This model aims to prevent attacks, maintain network integrity, and incentivize honest participation in the network.

6. WiseLSD® algorithm:

A proprietary AI algorithm developed by BlastFi, meticulously designed to autonomously inspect all staking protocols across blockchain networks periodically. This algorithm assesses comprehensive real-time data to provide users with curated staking pool options, prioritizing risk assessment and maximizing earnings. The WiseLSD® algorithm optimizes staking strategies across the entire Web3 landscape, enhancing efficiency and profitability for users.