[Coinlist] A Deep Dive Into Stader: Building Infrastructure For Staking
On January 13, we announced the Stader Token Sale on CoinList, starting January 25 at 18:00 UTC. Stader provides smart contract infrastructure for staking, helping users stake their assets conveniently and safely through its platform by building key staking middleware infrastructure for Proof-of-Stake networks.
Stader is building native smart contracts across multiple chains including Terra, Solana, Ethereum, Fantom, Hedera, Polygon, and building an economic ecosystem to grow and develop solutions like yield redirection with rewards, liquid staking, launchpads, gaming, and more. Stader’s modular smart contracts are built so that third parties can leverage their components and make custom solutions.
Let’s dive in.
1. To begin, what is Stader and what problem does it solve?
Stader is building key middleware infrastructure for token holders to conveniently and safely stake their assets across validators on Proof-of-Stake (PoS) networks.
PoS networks currently experience high centralization of stake and voting power, which is concentrated among top validators. Furthermore, their current staking infrastructure is not built to decentralize. Mid to long tail validators struggle to attract delegations, leading to high validator churn.
Token users on the other hand have limited awareness of staking-related metrics (such as Uptime) and face an effort-intensive validator discovery and delegation process. Additionally, after they delegate, they are faced with manual tracking and management of staked assets, rewards and airdrops.
Stader solves these issues by making it easy for delegators to stake with a basket of validators. Our Stake Pools group validators by key characteristics such as uptime, slashing history, community participation etc. Delegators can stake to their desired pool with a click of a button and Stader manages the delegation to validators algorithmically.
2. Can you describe your target audience? What types of users and use cases are best suited to use on Stader?
Stader infrastructure can eventually be leveraged for several customer segments including retail crypto users, exchanges, custodians, and mainstream FinTech players. We currently are live on Terra and focus on the retail user segment. We will soon expand our presence across multiple chains and go deeper into other customer segments.
Stader’s modular smart contracts are built so that third parties can leverage their components and incorporate custom solutions.
3. What advantages does Stader have over other staking protocols?
Our modular approach to building smart contracts sets us apart from other staking protocols. As staking evolves our architecture allows flexibility to grow and incorporate new features day in and day out. Extensibility is woven into Stader’s technical blueprint, with a system of highly-interactive smart contracts.
Stader separates the principal capital and the rewards with different contracts. This ensures that the principal capital staked is always isolated from the interactions with other protocols.
On the user side, our Stake Pools group validators by key characteristics such as uptime, slashing history, community participation etc. Delegators can stake to their desired pool with a click of a button and Stader manages the delegation to validators algorithmically. Some of the key features of our Stake Pools product are:
- Multiple validator pools for delegators to minimize slashing risks and encourage network decentralization
- Auto-compounding of rewards (conversion of stablecoins to LUNA and restaking) leading to higher returns.
- One-click airdrops claiming for Stader stakers enabling much lower transaction costs
4. What is the inherent use case for the Stader native token, SD?
SD Token provides various core utilities across the Stader ecosystem:
- Preferential delegations and Insurance: Validators will stake a minimum amount of SD Tokens and a percentage of delegations to the pool will be proportionately allocated based on SD Tokens staked. Slashing insurance will be provided by validators via the staked SD Tokens.
- Rewards and discounts: 1) Liquidity Pool Rewards: Rewards in SD Tokens for Liquidity Pool providers on DEXs, if elected by governance stakers. 2) Discount Tokens: SD Token stakers may receive a discount on fees charged on Stader solutions, if elected by governance stakers.
- Governance: Governance stakers can propose and vote on policies related to the Stader protocol strategy, expansion, validator pool selection, validator selection, changes in methodologies, and more.
- Development access to Stader infrastructure: Third parties, including developers, need to stake SD Tokens to access Stader smart contracts and product features such as customized staking smart contracts, validator intelligence tools etc.
5. How does Stader think about building across multiple chains?
We believe a seamless user experience across multiple chains is essential for mass adoption of the Stader ecosystem. In the short term, Stader is expanding its native staking smart contracts from Terra to multiple chains including Solana and EVM chains, and building an economic ecosystem to grow and develop solutions like YFI-style farming with rewards, launchpads, gaming with rewards liquid staking solutions, and more.
6. Looking ahead for 2022, what trends are you most excited about in the crypto space and DeFi more broadly?
We are extremely excited about the cross-chain infrastructure that is being built via bridges. We believe this will help us create really interesting multi PoS asset staking strategies.
We are also thrilled about the convergence of CeFi and DeFi where we would like to become the key staking infrastructure layer (and more) that connects these two worlds.
7. What is the best way for the community to get involved with Stader?
- Twitter – For our restrained use of memes, GIFs, teasers and emojis ?
- Discord – For a taste of your daily dose of organized chaos.
- Telegram – For a tsunami of questions, quips, burns and LOL moments.
- Medium – For freshly baked product updates and occasional surprise announcements.
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