General

FAQ Section

What’s liquid staking? Liquid staking allows users to support a network's security while keeping their tokens liquid, unlike traditional staking where assets are locked. Velix’s VeMetis token enables trading, further staking, and DeFi application use while original tokens earn rewards. The advent of decentralized sequencers on Metis opens significant opportunities for liquid staking derivatives like Velix.

What can I earn? Participating in Velix’s liquid staking can earn users rewards in Metis tokens from transaction fees and block validation. The value of the VeMetis derivative increases over time with rewards, enhancing earnings, though actual returns depend on network performance and staked amounts. VeMetis can also be staked on DEXs for trading fees.

What are the risks? DeFi platforms carry inherent smart contract risks. Before engaging with Velix, consider potential liquidity conditions on DEXs and slippage risks when converting tokens.

What’s sequencer staking? Sequencer staking involves locking tokens to support sequencer nodes, crucial for transaction ordering and block creation on the blockchain. This role, requiring a higher stake, offers unique opportunities for yield through the decentralized nature of Metis Sequencers, enhancing the appeal of liquid staking derivatives.

What can I earn from sequencer staking? Sequencer staking through Velix offers potentially higher rewards, sharing in the network’s APY. Rewards, possibly in Metis tokens, relate to the value added to the network and may include a share of transaction fees or other incentives. StMetis, a liquid staked token received, represents your staked Metis and auto-compounded rewards.

What are the differences between Metis, veMetis, and sveMetis?

• Metis: The native token of the Metis Layer 2 network.

• veMetis: Issued for staking Metis in the Velix protocol, allowing participation in DeFi without locking assets.

• sveMetis: A non-tradeable token proving staking participation, accruing rewards in veMetis.

What is the cost? Supporting a sequencer node requires a significant stake (e.g., 20,000 Metis tokens), limiting participation to those with considerable capital. This investment secures the sequencer's role and aligns their interests with the network’s integrity. Staking with Velix allows you to share in network security rewards.