Decentralized, peer-to-peer blockchain networks are composed of computers known as Nodes. With no central authority in charge of the blockchain, it's the Nodes that are responsible for storing the data held within the blockchain, i.e., a history of every transaction that occurs on the blockchain and the account balance of each wallet holder. It’s also each Node’s responsibility to update its version of the blockchain whenever new data is added, i.e., when new transactions are made - but this data needs to be validated first.
Again, with no central authority, the blockchain network relies on a large subsection of special Nodes to verify transactions. On Proof of Stake (POS) blockchain networks, such as Polkadot, Solana, Avalanche, and Cardano, these Nodes are known as Validators. When a Validator verifies a group of transactions within a block and adds it to the end of the blockchain, they are rewarded with new crypto, in a process known as minting.
However, to ensure that Validators act ethically and don’t authorise fraudulent transactions, they are required to lock up a certain amount of cryptocurrency with the blockchain network. This process is called Staking and entitles a Validator with the chance to validate new transactions and earn newly created crypto through the minting process. If a Validator does go on to authorise an invalid transaction, they run the risk of forfeiting some or all of the crypto they staked, which is known as slashing.
Streakk’s revolutionary Integrated Node Cluster (INC) technology takes this network of Validators and integrates them into a single crypto wallet. As a result, Streakk is not forced to depend on a single Validator. Streakk runs its own Validator Node as well to earn block rewards while lowering the risk of slashing. This technology delegates the crypto only to the Validators providing the highest rewards. Streakk’s innovative INC solution means its members can earn generous interest by staking the crypto in their wallets without handing over control of their funds.
We’ve integrated a Node cluster within the Streakk wallet to make earning interest on your crypto easier than ever.
Simply hold crypto in the Streakk Wallet and our AI-powered algorithm automatically delegates it to the Validator offering the best staking rewards. In the event that crypto is delegated to a Validator which goes down - or if another Validator offers higher returns, the crypto will be automatically delegated to lucrative Validator.
Each POS blockchain network has different rules regarding lock-up periods. During this period, a user’s tokens are locked up in a smart contract on the blockchain, preventing them access to their staked assets. This creates a new scenario called lock-up risk, which refers to the opportunity cost of users not being able to reallocate or liquidate their assets in line with changes in the crypto market. The ability for the user to stake their crypto assets without a lockup period would be a way to mitigate lock-up risk. This is where Streakk’s Smart Liquidity Solution (SLS) comes into play.
Streakk’s SLS solves the liquidity issue routinely faced by blockchain networks in two ways:
Streakk pays out Node rewards to its members every week. Each member that stakes their crypto from Monday 00:01 UTC to Sunday 23:59 UTC, receives their staking rewards on the following Wednesday. To be eligible for that week’s rewards, however, they have to stake the funds for the entire week. On the other hand, those members who only stake their funds in the middle of the week only start to accumulate rewards the following week. Meanwhile, members who withdraw their staked funds forgo their rewards for that week. That being said, in such cases where members stake or withdraw funds mid-week, Streakk reallocates their rewards in the Internal Liquidity pool.
As a backup for meeting the network’s liquidity demands, Streakk has enlisted liquidity providers (financial institutions, exchanges) who can provide liquidity at a low rate of interest rate. This contingency guarantees that Streakk never loses its liquidity and can continue to consistently mitigate the lock-up risk for members.