# Overview ## Introduction Homa is a decentralized liquid staking protocol implemented and deployed as upgradable runtime modules (aka pallets) on both the Acala and Karura networks. Homa protocol will be available as pre-compiled Smart Contracts on the EVM+ platform of both networks. Its staking derivative L-Token are accessible as both native Substrate and ERC-20 tokens. Proof-of-Stake networks creates an opportunity cost for using their network token in other applications versus staking. If DeFi applications provide a better yield than staking, it could motivate the collective movement of funds from staking to lending, causing a 'bank run' and risking the security of the entire network. Homa protocol establishes a non-custodial trustless and cross-chain staking pool, where users stake their token and receive a L-Token (e.g. stake DOT and receive LDOT) that represents the principle staked asset plus the staking yield continuously accruing. Homa is designed to provide stakers * **liquidity for staked asset** in the form of L-Token that is fungible and automatically accruing staking yields * **instant withdraws** without waiting for unbounding period * **1-click staking** and earn with ease Homa is an open, non-custodial and permissionless liquid staking protocol, where any third-party application and protocols can freely integrate and use L-Token to earn staking yield without restrictions. ## L-Token L-Token is a staking yield bearing token * that can be used as collateral in Acala stablecoin lending, **multiply exposure of underlying asset** (e.g. DOT, KSM) while earning positive APR * that can be used to provide liquidity in Acalaswap, **earning trading fees and staking yield** at the same time * that can be held in an account to accrue staking yield **without changing the account balance** * that is **transferrable** and **easily integrated** in other protocols ## Networks Homa protocol is available on * **Acala Network**: this creates a decentralized DOT staking pool, and stakers receive the L-DOT yield bearing asset * **Karura Network**: this creates a decentralized KSM staking pool, and stakers receive the L-KSM yield bearing asset ## Homa Liquid Staking Web App Homa protocol reference web applications * for Acala network is [here](https://apps.acala.network/ldot) * for Karura network is [here](https://apps.karura.network/lksm) Wallet required to use the web applications * [Polkadot{js} Extension](https://polkadot.js.org/extension/) Mobile Apps that integrates Homa protocol * [Polkawallet](https://polkawallet.io/) --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs-homastaking.acala.network/overview.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.