Celestia (milkTIA)

An overview of milkTIA, MilkyWay’s liquid staking token for Celestia. For step-by-step instructions for minting milkTIA, jump to Quick Start.

Purpose of milkTIA

MilkyWay converts TIA into milkTIA, delivering three core benefits:

• Liquidity: Holders keep Celestia staking yield while the token remains transferable across IBC and EVM bridges.

• Capital efficiency: milkTIA can be supplied to DEX pools, lending markets, and other DeFi protocols without forfeiting staking rewards.

• Shared security: Opt-in restaking lets the same collateral secure additional services for extra yield.

How milkTIA Works

• Deposit: User IBC transfers TIA from Celestia to Osmosis and calls Deposit. The protocol mints milkTIA at the current exchange rate.

• Delegation: MilkyWay protocol delegates pooled TIA to a diversified set of Celestia validators.

• Reward accrual: Block rewards accumulate in real time and are manually claimable.

• Redemption: Burn milkTIA to start unbonding. After the unbonding period, the original TIA is released back to the user.

Incentive Design

• Staking yield: milkTIA captures native TIA rewards after validator commission.

• Protocol fee: MilkyWay retains a small percentage of rewards(set by governance) to fund audits, infrastructure, and further development.

• Liquidity incentives: Selected pools may receive MILK or partner-token incentives to bootstrap depth during launch phases.

Why Mint and Hold milkTIA

• Protect against inflation: Earn TIA staking rewards without lock-up.

• Deploy in DeFi: Use milkTIA as collateral, LP, or yield strategy collateral while rewards continue to accrue.

• Redeem: Redeem for TIA at any time; only the Celestia unbonding time applies.

• Airdrop eligibility: Many projects snapshot liquid-staking balances alongside native stake.

• Optional restaking: Opt in to AVSs for an additional yield layer.

Validator Slashing

• MilkyWay's diversified validator set, on-chain monitoring, transparent slashing records mitigate slashing risks.

milkTIA gives Celestia stakers continuous yield, crosschain liquidity, and access to an expanding DeFi toolkit, all without surrendering the security of the base chain stake.