Whitepaper
  • Trusted Node $TNODE WhitePaper
  • Industry Backdrop
    • PoS Blockchains
    • Staking Market
    • Role of Validators
    • Staking rewards
    • Staking Pools
    • Staking-as-a-service (SAAS)
    • DeFi vs. PoS Staking
    • Lending Protocols vs. PoS Security
  • Industry Challenges
    • Entry barriers
    • Centralization and Resilience
  • Solution
    • The Network of Trusted Nodes
    • Unlocking Staking Liquidity
    • Gateway to multichain PoS
    • Democratic Access to PoS Governance and Staking
    • Infrastructure for PoS Security
  • Trusted Node Architecture
    • Inroduction
    • Staking Portal
    • Governance Portal
    • Liquid Staking
    • The Vaults
    • DAO Escrow Contract
  • User Rewards
    • Staking Rewards
    • Liquidity Yields
    • DAO Benefits
  • Trusted Node DAO
    • DAO Governance
  • DAO Revenue Model
    • DAO Architecture
  • Tokenomics
    • $TNODE
    • Token Supply and Allocation
    • Token Sale
  • Roadmap
    • Roadmap
  • Risks
    • Generalities
    • Validator/PoS risks
    • DeFi Risks
    • Network Security
    • Market Risks
  • Disclaimer
    • Disclaimer
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  1. Industry Backdrop

Staking Pools

Centralized exchanges, wallets, and third-party services offer custodial PoS staking pools, sometimes compared to savings accounts. In exchange for locking coins for a time, users receive certain yields minus fees. Pooling of resources gives token holders indirect access to some staking benefits.

However, the custodial character of most staking pools means the rewards are paid at the discretion of the third-party validator, who is the direct recipient of the mined tokens. It also goes against the philosophy of decentralized finance or the complete ownership of one's crypto asset. The risks of staking pools include exit scams, rug pulls, hacks, thefts, or bankruptcy of the central entity.

Staking through the pools also requires extensive research and often complicated delegation mechanisms that may cost users their assets.

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Last updated 3 years ago