Polygon Labs on Tuesday launched sPOL, the network's first native liquid staking token (LST), aiming to unlock more than 3.6 billion POL tokens currently locked in validator staking contracts.
sPOL allows stakers to receive a transferable, yield-bearing receipt token upon staking POL, which can then be deployed across DeFi as collateral, liquidity, or a building block for additional yield strategies, all while continuing to earn staking rewards.
Polygon's liquid staking penetration has lagged far behind Ethereum's, where over 43% of staked ETH sits in liquid staking derivatives. On Polygon, that figure remains below 5%, a gap the team attributes to a fragmented market where third-party LSTs charge fees ranging from 5% to 16%.
To continue reading this as well as other DeFi and Web3 news, visit us at thedefiant.io
