The decentralized exchange platform MilkyWay has announced a liquid staking protocol for the Celestia ecosystem. Users will be able to receive milkTIA tokens representing their staked assets by staking their Celestia (TIA) tokens. This move aims to offer users a more capital-efficient option compared to the traditional staking process.
Celestia was launched as a modular network that Layer-2 rollup blockchain ecosystems can use for data access and consensus. The TIA token is staked by validators to secure the network. MilkyWay will enable users to maintain the liquidity of their TIA assets while representing them.
MilkTIA will allow users to trade their staked TIA assets in various decentralized finance (DeFi) products or use them as collateral. This arrangement will eliminate the need for the 21-day lock-up period common in Cosmos-based blockchain networks.
MilkyWay operates without a dedicated Layer-1 blockchain ecosystem. The protocol was designed using smart contracts on Osmosis, a DeFi hub for the Cosmos ecosystem, and is used to provide a liquid staking solution.
This initiative includes a multisig setup on Osmosis, managed by a consortium consisting of seven major platforms such as Everstake, Chorus One, Allnodes, 01node, DSRV, Keplr, and Cosmostation. The launch of MilkyWay will also include a TIA: milkTIA liquidity pool on Osmosis’s decentralized exchange.