Challenges of dApp Staking

One of the most significant challenges of dApp staking is the lack of a ubiquitous model to offers users Bonus Rewards. By effectively locking their tokens for the Voting and Build&Earn Subperiod, they lose any liquidity on their capital.

Moreover, per Astar’s rules, users receive rewards in proportion to the duration for which they keep their (minimum required) ASTR staked during the Build&Earn subperiod. If they decide to withdraw halfway through that period, they lose the ability to accrue the rewards for the entire period.

Moreover, to withdraw their ASTR, users also need to wait for the unbonding period (which is roughly 9 days) to get over before they can receive their capital back. And since locked ASTR do not earn any rewards, users lose out on significant yield opportunities during the unbonding period itself.

This leaves users locked in the network for a significantly long period, further disincentivizing them to stake their ASTR tokens.

Neemo Finance solves this very problem for ASTR stakers by introducing liquid dApp staking.