{"id":16563,"date":"2026-01-03T19:32:01","date_gmt":"2026-01-03T12:32:01","guid":{"rendered":"https:\/\/bitcoinvn.io\/news\/?p=16563"},"modified":"2026-06-07T12:27:57","modified_gmt":"2026-06-07T05:27:57","slug":"staking-liquidity-pools","status":"publish","type":"post","link":"https:\/\/bitcoinvn.io\/insights\/staking-liquidity-pools\/","title":{"rendered":"From Staking Vaults to Staking (Liquidity) Pools"},"content":{"rendered":"

Since the introduction of our liquidity provision program (commonly referred to as \u201cstaking\u201d<\/a>), we have generally used the term \u201cStaking Vaults\u201d<\/b> in our public communication around the program.<\/p>\n

This will change as of 2026.<\/p>\n

Going forward, we will align our naming more closely with the actual functionality of the product and with the general common parlance<\/i> used across the broader \u201ccrypto\/DeFi\u201d ecosystem.<\/p>\n

As such – while the underlying functionality remains exactly the same as before and as you have known it – we will from here on out refer to these structures more precisely as staking pools and\/or liquidity pools<\/b>.<\/p>\n

In hindsight, the term \u201cvault\u201d was likely not the best choice. A vault typically implies an object or system designed primarily for secure storage<\/i> – something that is intentionally made harder to access or remove assets from than it would be without such precautions.<\/p>\n

Our staking infrastructure, by contrast, is first and foremost a liquidity provision mechanism<\/b>, not a long-term cold-storage solution – and our terminology should reflect that more clearly.<\/p>\n

But that is not what our staking\/liquidity pools are.<\/p>\n

Participation in our liquidity provision program requires clients to give up custody of their coins and to entrust a third party (in this case: us<\/a>) with those assets.<\/p>\n

This is, generally speaking, a bad move – unless you really, really<\/i> know what you are doing and can afford to take on the counterparty risk that inevitably comes with giving up self-custody.<\/p>\n

\"Self-custody
He tells it like it is – get your self-custody defender shirt here<\/a><\/figcaption><\/figure>\n

While our liquidity providers (LPs) offer a highly valuable service to the platform – their liquidity allows us to operate a smooth, instant-swap exchange across a wide range of digital assets (<\/i>without having to carry all of those assets on our own balance sheet<\/i><\/a>)<\/i> – it must be clearly understood that this program is only suitable for sophisticated participants.<\/p>\n

Specifically, it is intended for users who understand the risks involved and who have the financial resilience to endure adverse outcomes<\/i> should things go wrong.<\/p>\n

LPs are providing liquidity to an online service<\/b>. That liquidity is held in an open pool<\/b>, with withdrawals possible at any time. It is not<\/i> \u201clocked away\u201d in a vault or otherwise isolated from operational use.<\/p>\n

For these reasons, both the imagery and the terminology of a liquidity pool<\/b> describe the function of this exchange feature far more accurately – and they are also much closer to the established common parlance used throughout the broader crypto and DeFi ecosystem.<\/p>\n

On actual \u201cvault-like\u201d security<\/h2>\n

If you are specifically looking for additional security<\/b> – the kind of protection people usually associate with the word vault<\/i> – other parts of our organization are better suited for that purpose (at a cost).<\/p>\n

If you are looking to separate your private keys from any internet-connected device, our colleagues at BitcoinVN Shop<\/b> – an official hardware wallet supplier – stock the latest genuine models from leading manufacturers such as Trezor<\/b> and Ledger<\/b><\/a>, available for fast domestic shipping within Vietnam.<\/p>\n

\"BitcoinVN<\/p>\n