Liquid Staking Proof

Zypheria’s innovative staking model combines robust network security with enhanced DeFi capital efficiency

Zypheria’s proof-of-liquid-staking model reimagines traditional PoS economics by combining a fixed token supply, delegator protection, and deep liquid staking integration—delivering sustainable security while keeping capital productive in DeFi.

Core Principles

P-Driven Rewards with Fixed Supply

With no inflation or block rewards, Zypheria compensates validators from the Treasury, rewarding performance rather than increasing token supply.

Delegator Protection and Capital Efficiency

No slashing for delegators eliminates the risk of asset loss, while staked ZYPH tokens can be represented as liquid assets and used throughout the ecosystem.

Economic Structure

Validator Compensation: $3,500 USD per month base pay, with performance-based adjustments. No commissions on delegator rewards, ensuring clear separation of roles.

Delegator Rewards: Stable 3% target APR funded by the Zypheria Treasury, with opportunities to enhance returns through DeFi participation.

Performance Requirements

Performance Metric	Minimum Threshold	Target Threshold	Result if Below Minimum
Block Signing	85%	83.5%	Partial or no rewards
Oracle Price Updates	85%	83%	Partial or no rewards

Liquid Staking Innovation

• The network actively supports liquid staking derivatives such as dZYPH.

• Staked ZYPH can be represented as liquid tokens and used throughout the ecosystem.

• Capital both secures the network and participates in DeFi applications.

• The DAO stakes a significant portion of the treasury with validators to strengthen network security.

• Staked ZYPH provides governance voting power through dedicated vaults without requiring unstaking.

Advantages Over Traditional Models

Sustainable Economics

No inflation preserves token value, while Treasury funding ensures stable and predictable compensation for both validators and delegators.

Capital Efficiency

Liquid staking removes opportunity costs by enabling capital to secure the network while simultaneously generating DeFi yields.

Technical Implementation

Zypheria’s liquid staking model functions through several integrated mechanisms:

• x/revenue Module: Evaluates validator performance and distributes rewards proportionally to their service metrics.

• Staked ZYPH Voting Vault: Allows native stakers to participate in governance without needing to unstake their tokens.

• DAO Treasury Management: Strategically deploys treasury assets to secure the network while supporting ecosystem growth.