Staking Rewards Strategy

Overview

Staking is one of the core revenue-generating strategies within the Seablocks ecosystem. By allocating a portion of its backing assets to proof-of-stake (PoS) networks, SeaBlocks earns staking rewards while contributing to network security and decentralization. This strategy provides a stable income source that complements other yield-generating activities such as liquidity provision and delta-neutral hedging.

Staking rewards originate from three primary sources:

1. Consensus Layer Rewards: These are distributed as part of PoS protocol incentives for validators and stakers securing the network.

2. Execution Layer Fees: A portion of transaction fees paid by network users is allocated to validators and delegators.

3. MEV (Maximal Extractable Value) Rewards: Validators and stakers may earn additional revenue from transaction ordering and priority fees.

To maximize returns while minimizing risk, Seablocks diversifies staking allocations across multiple PoS networks and utilizes liquid staking solutions where available in differents CEX.