Validators Status page
Much valuable information about the Liquidity Staking Module (LSM) and its chain-specific usage remains scattered and difficult to find. To encourage wider adoption, we believe providing key metrics regarding its use is crucial. So we developed the Validators Status page.
Global Liquid Staking cap
To understand the purpose of liquid staking caps as security measures, please refer to our dedicated Security section.
Global Liquid Staking Cap: 25% Limit on Cosmos Hub
On the Cosmos Hub specifically, the Global Liquid Staking cap is currently set at 25%. This means that a maximum of 25% of the total stake on the chain can be in its liquid form. In simpler terms, once this limit is reached, no further assets can be liquefied.
Monitoring the Cap:
You can easily track the current percentage of liquid stake on the Cosmos Hub by visiting the Validators Status page. This page will display the current value and its proximity to the 25% cap.
Individual Validator Liquid Staking Caps
Building upon the Global Liquid Staking Cap discussed in the previous section, each validator also has its own individual liquid staking cap. This cap is directly tied to the amount of "skin in the game" the validator has, meaning the more tokens they bond to their own validator, the more liquid staking capacity they unlock.
Individual Validator Liquid Staking Cap: 250x "Validator Bond" Rule on Cosmos Hub
On the Cosmos Hub specifically, validators can receive liquid stake equivalent to 250 times their "validator bond". This is called the "Validator Bond" cap, and incentivizes validators to bond more of their own tokens, promoting a more secure and decentralized network.
NOTE
There is another "Validator Liquid Staking Cap". This represents the maximum percentage of a validator's own stake that can be in liquid form. Imagine a cap of 50%. In this scenario, a validator could not have more than 50% of its total stake in the form of liquid stake. On the Cosmos Hub specifically, this cap has been effectively disabled by setting it to 100%. This means that validators can currently (in theory) have all their stake in liquid form.
Monitoring Individual Capacity:
The Validators Status page provides a convenient way to track each validator's individual liquid staking capacity and how much of it is currently filled. This allows you to see how much space is available for further liquid staking on each validator.
