The team behind the Sui blockchain (SUI), Mysten Labs released an update that adds the liquid staking of the native token.
The initiative is implemented as part of the SIP-6 proposal. Developers on the network can already implement the function in protocols.
“Adding built-in support for decentralized applications as part of the blockchain’s core technology meets the clear need voiced by members of our community who wanted to participate in securing the network without compromising liquidity,” said Greg Siournis, Executive Director of the Sui Foundation.
According to the statement, when staking the asset the Move software package issues a derivative token — stSUI. In addition to the main withdrawal function, it can be sold, exchanged, or left as collateral.
The native coin, which remains locked, continues to “protect the network within the consensus mechanism.”
According to project representatives, Sui separates these two processes, unlike other liquid staking solutions such as Lido on Ethereum. The network also allows users to choose validators themselves, rather than “shift that responsibility to the protocols.”
Mysten Labs believes that the absence of such solutions in other blockchains “concentrates power in one or more nodes.”
According to DeFi Llama data, at the time of writing the amount of locked funds in the network stands at $13.9 million. The SUI token trades at $0.595, having fallen 5.9% over the day.
Earlier in May, the Sui developers conducted a successful mainnet launch. On the same day, the cryptocurrency exchange Binance listed the SUI token.
Later, the project announced the launch Web3-games as part of numerous partnerships.