Developers have introduced a new product called MilkyWay in the cryptocurrency community. This product is a liquid staking protocol designed for use on the Celestia network. MilkyWay allows users to engage in cryptocurrency staking of Celestia (TIA) and receive MilkTIA in return, a digital asset representing their investments. This staking method is considered more efficient in terms of capital allocation compared to the traditional fund placement process.
Celestia is a modular network that second-layer blockchains (L2) can use to access data and achieve consensus. The product was launched on the mainnet of the Cosmos ecosystem at the end of October 2023. The TIA token plays a crucial role in the system, being used by validators for staking and ensuring the ecosystem's security.
MilkTIA represents TIA assets while providing liquidity. Users have the option to trade these assets or use them as collateral in various decentralized finance (DeFi) products. This scheme allows avoiding the "standard 21-day unbonding period" often used in Cosmos-based networks.
MilkyWay operates without the use of a dedicated first-layer blockchain (L1). To ensure liquid staking, the company uses smart contracts on Osmosis, which is the DeFi hub for the Cosmos ecosystem. This solution also incorporates a multi-signature setup on Osmosis managed by a consortium of seven authoritative operators, including Everstake, Chorus One, Allnodes, 01node, DSRV, Keplr, and Cosmostation.
According to information from The Block, since the mainnet launch on October 31st, the market value of the cryptocurrency TIA has increased by nearly 400%, rising from 2.5 to over 11.5. It is worth noting that over the past day, prices for this digital currency have decreased by 15%. As a result, the TIA capitalization has also decreased to the level of 1.76 billion.
