Revolutionizing restaking: Stake smart, harvest hexa rewards with Spectrum
Kroma now hosts Spectrum, a pioneering restaking service with an innovative reward system. This groundbreaking product allows users to earn rewards and accrue value within the Kroma ecosystem.
On 14 May 2024, Kroma launched Spectrum, a restaking platform that allows users to do more with their ETH, while earning all kinds of rewards. This new ecosystem allows for so-called hexa rewards; six layers of rewards that users can harvest by participating in the Kroma ecosystem.
Before we dive deeper into what you can earn through Spectrum on Kroma, we will first explain the key characteristics of both the blockchain network. After that, we will look at the rewards and earning opportunities of the DeFi platform Spectrum.
Kroma explained
Kroma is a Layer-2 network built on top of the Ethereum mainnet. This ecosystem has the goal to become a zk-rollup scaling solution, but they are waiting for the technology to become faster and more cost-efficient. Until that time, Kroma exists as an Optimistic rollup with zero-knowledge fault proofs.
Kroma prides itself on low transaction fees that are at least 10 times cheaper than Ethereum. The L2 network compresses and bundles transactions, and then finalizes them on Ethereum mainnet, while still ensuring the inherited security level of Ethereum. In addition, Kroma is EVM-compatible, making it easy for developers to deploy on the Layer-2 network.
In Q2 2024, the Kroma team will revise their validator network. This will happen in conjunction with the launch of their KRO token.
Spectrum revolutionizes restaking with hexa rewards
Spectrum is a new DeFi protocol built on top of Kroma that strongly incentivizes users to stake their ETH and increase their yield. Restaking has become one of the biggest revelations in DeFi, because it creates more liquidity and enhances utility. Users who stake their ETH with Lido, receive spETH in exchange. They can then use spETH elsewhere in the DeFi spectrum, using the spETH as a sort of redemption coupon.
Spectrum wants to attract that liquidity with a rewarding campaign that involves something they call ‘hexa rewards’. Spectrum wants to bring plenty of rewards to users who stake their ETH, stETH or eETH, and then enable these stakeholders to participate in the Spectrum ecosystem with spETH.
With this offering, Spectrum even offers more types of rewards than Manta, which offers penta (5) restaking rewards. The full list of Spectrum rewards can be found below:
- ETH APR – receive yield on your bridged ETH
- Restaking rewards – you still earn yield on staked stETH or eETH
- EigenLayer points
- Ether.Fi loyalty points
- WEMIX.e airdrop
- KSP, Kroma Spectrum Points – these points can be exchanged for KRO tokens in the future
Spectrum Staked ETH, or spETH
Users receive spETH, short for Spectrum Staked ETH, by staking ETH, stETH or eETH. This means that spETH is a synthetic asset, backed by staked ETH tokens. With spETH users get access to liquidity in the DeFi system of Spectrum, liberating users from long-term lock-ups while still earning rewards.
spETH empowers users to unlock the full potential of their staked assets through DeFi protocols and dapps within the Kroma ecosystem. Additionally, users can utilize spETH across various dapps onboarded onto the platform. Spectrum has garnered widespread acclaim with the successful onboarding of renowned decentralized applications (dapps) like Standard Protocol, Light Bank, Layer Bank, Shoebill, ZapankiSwap, Wellxy, PrixmSwap, and iZUMi Finance. Spectrum is expanding its ecosystem to ensure that spETH can be widely used in DeFi applications. Simply put, thanks to spETH you can earn more through Spectrum’s DeFi ecosystem.
Kroma Spectum Points, or KSP
Similar to various other restaking platforms, Spectrum introduces Kroma Spectrum Points, or simply KSP. You can earn points based on your contributions to the spETH ecosystem. The KSP points hold the promise of future exchange for KRO, the governance token of the Kroma.
In addition, users can boost their KSP earnings through a referral system. Where other networks require users to restake to get access to the referral system, Kroma does not limit any community member. The referral system will allow users to invite friends, and earn KSP together. People you invite earn you a 16% boost, while friends of those friends give you an additional 8%. That means that active community members can really benefit from their invites.
However, there are more ways to get a boost on your KSP earnings. For example, early members who stake ETH, stETH or eETH will get KSP boosting. In addition, Kroma NFT holders (KQM/KGH) get access to KSP boosting.
Closing words
Spectrum on the Kroma is shaping up to become a rewarding experience for DeFi enthusiasts who want to put their staked ETH to work. The received spETH becomes usable in the wider Kroma ecosystem, which will include DeFi, GameFi and other product segments. Moreover, Kroma is working towards the launch of their KRO token, allowing community members to earn Kroma Spectrum Points which can be redeemed for KRO tokens in the future. In summary, the Kroma ecosystem presents an interesting opportunity, and the hexa rewards system makes it very appealing for those looking for novel DeFi systems.
