Valour Digital Securities is introducing the 1Valour Internet Computer Physical Staking product, an exchange-traded product (ETP) that allows investors to gain exposure to the growing Internet Computer (ICP) ecosystem. This innovative product tracks the price of ICP, the native token that powers the Internet Computer’s decentralised infrastructure. ICP aims to transform the traditional internet model by enabling smart contracts to operate natively on the blockchain, offering a more secure and efficient web experience.
The 1Valour Internet Computer Physical Staking product is fully backed by physical assets, providing investors with peace of mind. The assets are held securely in cold storage by licensed custodians, such as Copper Markets (Switzerland) AG and Komainu (Jersey) Limited, both of which are regulated by respected financial authorities. This level of security distinguishes Valour’s staking products, ensuring that investor assets are safeguarded while participating in the digital asset market.
Through strategic partnerships with reliable staking providers, including Figment and Blockdaemon, Valour reduces the risks typically associated with individual staking. These providers, experts in institutional blockchain infrastructure, work in conjunction with Valour’s custodians to offer non-custodial, 100% fully collateralised staking. This ensures that while assets are staked to earn rewards, they remain fully backed, without adding any extra risk to the investor’s initial capital.
Staking is a feature of Proof-of-Stake (PoS) blockchains, which ICP uses to secure the network. For investors, staking ICP can offer a significant return through the rewards earned for participating in network validation. These rewards are dynamic and adjust regularly based on factors such as the number of validators in the network and its transaction volume. In some cases, such as Ethereum, a minimum stake is required to become a validator, which can temporarily limit the available funds for staking until enough assets are accumulated. However, Valour’s staking ETPs address this challenge by passing on a fixed percentage of the staking rewards to investors through the product’s daily Net Asset Value (NAV), ensuring that investors consistently receive their portion of the rewards.
Valour’s staking products go beyond just providing access to staking rewards. They are designed with daily liquidity, allowing investors to buy and sell their stakes whenever needed. To facilitate this, Valour has implemented a system where not all of the underlying assets are staked at once. This system accounts for the varying lockup periods and epochs of different blockchain networks, ensuring that there are always enough unlocked assets available to meet daily redemption requests. While this balancing act may result in slightly lower staking rewards when utilisation rates are low, it ensures that liquidity is always available for investors.
Valour’s commitment to security and reliability is further evident through its continuous monitoring of the staking environment. The company regularly assesses factors like network congestion, liquidity management, and the operational capacity of its custodians and staking partners. This focus on operational integrity enables Valour to optimise staking rewards for investors, while maintaining the flexibility and liquidity expected from a top-tier ETP provider.
While there are many benefits to staking, investors should also be aware of potential risks. One key risk is the lockup period, or bonding and unbonding. Bonding refers to the process of locking assets as collateral for network validation, while unbonding is the withdrawal of staked tokens to make them available for other uses. These processes come with their own waiting periods, which can range from a few days to several months, depending on the blockchain network in question. As a result, investors may not be able to access their staked assets immediately if they need to sell or transfer them.
Another risk is slashing, a penalty mechanism used by blockchain networks to deter malicious or negligent behaviour among validators. If a validator goes offline for too long, engages in double-spending attacks, or runs unauthorised software, a portion of their stake may be “slashed” or forfeited. Although slashing could lead to the loss of rewards for investors, Valour mitigates this risk by carefully selecting its staking providers and ensuring they have slashing insurance policies where applicable.
Staking platform risk is another factor investors must consider. Each staking platform or validator has its own technical and security risks, which could affect the network’s stability or the rewards generated. However, Valour reduces this risk by working with reputable, regulated staking providers who maintain high standards of operational professionalism and security.
For Valour, launching the 1Valour Internet Computer Physical Staking product represents an important step in its mission to offer investors secure, innovative, and accessible ways to participate in the rapidly growing field of decentralised finance. By combining the power of ICP’s blockchain technology with the security and reliability of trusted custodians and staking providers, Valour offers investors a reliable way to gain exposure to one of the most promising new blockchain ecosystems.
Looking to the future, Valour plans to expand its product offerings to cater to the evolving needs of the digital finance market. The company constantly reviews its products and partners to ensure that it remains at the forefront of innovation. As the interest in Web3 and decentralised finance grows, Valour is dedicated to providing investors with opportunities to diversify their portfolios and take advantage of the potential of digital finance.
In addition to innovating and expanding its product range, Valour is focused on making its ETPs easy to access and use for investors. With daily liquidity, investors can buy, sell, or redeem their assets without worrying about lockup periods or other restrictions. As the market continues to evolve, Valour’s products provide a simple, secure, and effective way to participate in the future of finance and decentralised technology.
For those seeking exposure to decentralised finance and the Internet Computer ecosystem, the 1Valour Internet Computer Physical Staking ETP offers a compelling opportunity to invest in an emerging blockchain network while minimising risk and maximising reward potential.
Valour’s focus on offering secure, transparent, and innovative financial products ensures that investors can confidently navigate decentralised finance. With daily liquidity, fully collateralised staking, and a commitment to constant improvement, the 1Valour Internet Computer Physical Staking product is well-positioned to become a key offering in the rapidly growing space of Web3 and decentralised finance.