How Does Lolik Liquid Staking Work?
Lolik is a liquid staking platform that lets users stake FTN (Fasttoken), ETH, and MATIC tokens to earn daily staking rewards while receiving liquid staking tokens that can theoretically be used in other DeFi activities. The majority of its approximately $30M in deposits is FTN staked on the Bahamut blockchain. Lolik acts as an intermediary between stakers and node operators, using a standard liquid staking model. However, the protocol has very limited public documentation, no publicly available audit reports, and operates primarily on Bahamut — a relatively new and small EVM chain with limited decentralization and DeFi ecosystem depth.
TVL
$0
Sector
Liquid Staking
Risk Grade
C
Value Grade
D-
Core Mechanisms
3.4.2
Liquid staking tokens representing staked FTN/ETH/MATIC that accrue PoS staking rewards
Standard reward-bearing LST pattern across Ethereum, Polygon, and Bahamut. Bahamut (FTN) staking dominates deposits.
3.3.2
Protocol-mediated delegation to node operators on Bahamut, Ethereum, and Polygon
Acts as intermediary between stakers and node operators. Standard pooled delegation model.
3.1.1
Daily pro-rata staking reward distribution to liquid staking token holders
Standard daily reward accrual through LST appreciation.
2.1.2
Percentage-based fee on staking rewards as protocol revenue
Standard liquid staking fee model taking a cut of validator rewards.
6.4.3
Exchange rate oracle for LST pricing on Bahamut DeFi ecosystem
LST exchange rate must be reported for any DeFi integrations. Bahamut ecosystem is nascent with very few DeFi protocols.
How the Pieces Interact
FTN staking returns depend entirely on Bahamut chain health. With a small validator set and short history, chain-level failure (halt, exploit, validator collusion) would freeze all staked assets.
LSTs have virtually no secondary market or DeFi utility on Bahamut. Users cannot efficiently exit positions or use tokens as collateral, creating effective illiquidity despite the 'liquid' branding.
Deploying staking contracts across Ethereum, Polygon, and Bahamut multiplies smart contract risk surface. An exploit on any chain affects that chain's depositors.
What Could Go Wrong
- Lolik's TVL is heavily concentrated on Bahamut, a relatively new and small EVM chain. Bahamut itself has limited decentralization, few validators, and a short track record, making chain-level risk the dominant concern.
- Very limited public documentation, no published audit reports, and sparse technical details make independent risk assessment nearly impossible — the protocol operates largely as a black box.
- FTN (Fasttoken) is the primary staked asset, concentrating exposure in a single token with limited liquidity and DeFi composability outside the Bahamut ecosystem.
Bahamut Chain Failure and FTN Staking Freeze
ModerateTrigger: Bahamut chain experiences prolonged halt, validator collusion, or critical exploit that freezes all on-chain activity
- 1.Bahamut chain halts due to validator failure, bug, or coordinated attack — All FTN staking and unstaking transactions become impossible
- 2.Lolik users cannot access staked FTN or liquid staking tokens on Bahamut — Effective total loss of access to funds until chain resumes
- 3.FTN price crashes on external exchanges as traders price in chain risk — Even if chain recovers, staked asset value has declined significantly
- 4.Confidence in Bahamut ecosystem collapses — Users withdraw remaining funds from all Bahamut protocols once chain resumes
Risk Profile at a Glance
Overall: C (45/100)
Lower score = safer