# 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/)