The MilkyWay Liquid Staking Protocol

In the ever-expanding universe of DeFi, innovative solutions are constantly being developed to address the limitations of traditional blockchain networks. One of the latest stars in the Cosmos ecosystem is MilkyWay, a liquid staking protocol designed specifically for the Celestia network. This new protocol is changing how users interact with DeFi in the Cosmos ecosystem and the Celestia Network, offering a flexible and efficient staking mechanism. Let’s dive into the core of MilkyWay, exploring how it operates and the unique benefits it brings to the DeFi landscape.

The Foundation of MilkyWay

MilkyWay is built on the Celestia network, a modular blockchain framework that prioritizes scalability and simplicity. By focusing on Celestia, MilkyWay leverages a platform that supports massive scaling without compromising on security or decentralization. The protocol enables users to stake their Celestia (TIA) tokens and, in return, receive milkTIA tokens. These tokens represent the staked TIA and can be freely used in various DeFi activities, offering liquidity and flexibility previously unseen in traditional staking models.

Breaking Free from Unbonding

One of the most significant challenges with conventional staking protocols is the unbonding period. Typically, when users decide to unstake their assets, they must endure a waiting period, which can be as long as 21 days. This waiting period is a significant drawback for many, as it locks up assets and prevents them from being used in other investment opportunities. However, MilkyWay eliminates this issue by allowing users to convert their milkTIA back into TIA instantly, without the need to wait for an unbonding period. This feature is a game-changer, providing unprecedented flexibility and access to assets.

MilkyWay’s Role in the DeFi Universe

The introduction of MilkyWay into the DeFi space opens up a myriad of possibilities for both investors and developers. The protocol offers investors a way to earn staking rewards without sacrificing liquidity. This means that users can continue to participate in other DeFi protocols, leveraging their assets across multiple platforms without being tied down by staking requirements.

For developers, MilkyWay provides a fertile ground for innovation. By integrating with the protocol, DeFi applications can offer their users the benefits of staking with added liquidity. This could lead to the development of new financial products and services that were not possible under the constraints of traditional staking models.

DeFi Protocols Compatible With milkTia

For networks within Cosmos, you might have to do an IBC transfer, which can easily be done inside Keplr or Leap wallets. Also keep in mind you will need a small amount of the native token on each network for gas, which can be achieved with an IBC transfer as well. The following protocols are a few of the options for utilizing your milkTIA in DeFi:

There are additional opportunities that you can view on the MilkyWay dApp here.

mPoints Airdrop

MilkyWay has a confirmed airdrop and recently released the details of their mPoints program. Essentially, the program is currently comprised of two elements, with more ways to earn points soon:

  • Simply hold milkTIA in your wallet (on the Osmosis chain) and receive 1 mPoint per milkTIA held, per day. Also, if you have milkTIA in a DeFi app, you’d transfer it back to the Osmosis chain to start earning HODL mPoints again.
  • Put your milkTIA to work in one of the DeFi plays mentioned previously and earn 1.2 mPoints per day per milkTIA.
  • There will be new ways to earn mPoints coming soon, including social media activities, early adopter points, testnet participation, referral initiatives, and booster campaigns.

Final Thoughts

MilkyWay isn’t just another protocol in the DeFi space; it represents a significant leap forward in how staking can be integrated into the broader Cosmos ecosystem. By eliminating the friction of unbonding periods and providing a liquid alternative to staked assets, MilkyWay offers a more flexible and efficient way for users to manage their investments. As the DeFi universe continues to evolve, protocols like MilkyWay play a crucial role in shaping the future of decentralized finance, making it more accessible, flexible, and efficient for everyone.


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