Unlocked liquidity, increased capital efficiency, and additional revenue streams to stakers and liquidity providers. All this is possible through Proof-of-Liquidity - an evolution of Proof-of-Stake targeted at DEX-specific chains.

Every asset is paired against MGA to create stakeable LP tokens. Users stake liquidity pool (LP) tokens, instead of just staking the native token like in other networks.

LP tokens are staked with nodes and will automatically be used in the corresponding liquidity pool. Instead of being locked capital, the stake will keep working as liquidity.

By using liquidity pool tokens as staking assets, Proof-of-Liquidity unlocks staked liquidity, which allows for deeper liquidity and thereby increases capital efficiency.

You can learn more about  Proof-of-Liquidity in the dedicated blogpost: