Introduction

At Stader Labs, we’re continually innovating to bring one billion people into the world of staking and decentralized finance (DeFi). Staking is a fundamental aspect of the Web3 ecosystem, offering users the opportunity to earn rewards while participating in network activities. Our mission is to provide a seamless, secure, and flexible staking experience through our innovative liquid staking platform. In this blog, we invite Web3 wallet developers and companies to explore the incredible benefits of partnering with Stader.

Understanding Stader Labs

Stader Labs is a non-custodial, smart contract-based platform designed to revolutionize staking. Our liquid staking solution allows users to earn staking rewards without the need to lock up their tokens, providing unparalleled flexibility and access to liquidity. We support multiple blockchain networks, including Ethereum (ETHx), Polygon (MaticX), BNB Chain (BNBx), and Hedera (HBARX), making us a versatile platform for diverse crypto assets.

Key Features:

• Liquid Staking: Users can convert staked tokens into liquid tokens, enabling trading or use in DeFi protocols.
• Multi-Chain Support: Stake across various blockchain networks, enhancing user flexibility.
• Security: Continuous code reviews, on-chain monitoring, and audits by Sigma Prime, Halborn, Peckshield, and OtterSec.
• User-Friendly Interface: A simplified staking process suitable for both beginners and experienced users.
• Competitive Rewards: Attractive staking rewards compared to traditional methods.

Our vision is to make staking accessible, secure, and beneficial for all users. As we expand our offerings and integrate with more blockchain networks, we are committed to driving innovation and growth in the DeFi ecosystem.

The Role of Wallets in Staking

Web3 wallets are the gateway to the world of cryptocurrencies and DeFi. They allow users to store, manage, and interact with their digital assets securely. Integrating staking solutions into these wallets enhances the user experience by providing additional functionalities and opportunities to earn rewards.

Benefits for Wallet Users:

• Seamless Integration: Users can stake directly from their wallets without needing to navigate multiple platforms.
• Enhanced User Engagement: Staking features keep users engaged and active within the wallet ecosystem.
• Increased Security: Integration with Stader ensures that users’ assets are protected by robust security measures.

By partnering with Stader, wallets can offer their users the convenience and benefits of liquid staking, driving user engagement and satisfaction.

Current Wallet Partnerships

At Stader, we have successfully partnered with a variety of wallets that support our staking solutions. These partnerships enhance the staking experience for users and demonstrate the versatility of our platform.

Partner Wallets and their unique features:

• MetaMask: Integration with Ethereum dApps and robust security features.
• Coinbase Wallet: Strong exchange integration facilitating a smooth transition from centralized to decentralized finance.
• WalletConnect: Wide compatibility with multiple wallets and dApps, offering flexibility for users.
• OKX Wallet: Deep integration with OKX exchange, supporting various blockchain networks.
• Gate Wallet: Comprehensive security features and support for multiple cryptocurrencies.
• Rabby Wallet: Enhanced security with transaction simulations and phishing protection.
• Phantom: Leading wallet for the Solana ecosystem, offering in-wallet staking and NFT management.
• SafePal Wallet: Combination of hardware and software wallet solutions for high security.
• TokenPocket: Extensive multi-chain support and built-in dApp browser.
• Bitget Wallet: Seamless integration with Bitget trading platform.
• imToken: Multi-chain support and hardware wallet integration for secure private key management.
• Ledger: Industry-leading hardware wallet with top-notch security features.
• Binance Web3 Wallet: Integration with Binance ecosystem, supporting multiple blockchain networks.

Each of these wallets brings unique strengths and features, making them ideal partners for Stader’s liquid staking solutions.

Benefits of Partnering with Stader

Partnering with Stader Labs offers numerous benefits for Web3 wallets, enhancing their service offerings and driving user engagement.

Key Benefits:

• Enhanced User Engagement: Integrated staking services keep users engaged and active within the wallet ecosystem.
• Growing User Base: Access to Stader’s rapidly expanding user base and TVL, providing increased exposure and potential growth.
• Technical and Marketing Support: Comprehensive support from Stader Labs to ensure smooth integration and successful collaboration.
• Increased Security: Assurance of best-in-class security measures through audited smart contracts and continuous monitoring.

By integrating with Stader, wallets can offer their users a superior staking experience, driving growth and satisfaction within their communities.

Success Stories

Several wallet partners have successfully integrated with Stader, enhancing their service offerings and providing users with valuable staking solutions.

Case Studies:

• MetaMask: Integration with Stader has enabled MetaMask users to seamlessly stake their Ethereum assets, driving increased user engagement and satisfaction.
• Ledger: The partnership with Stader has allowed Ledger to give it’s users a single click solution for staking ETH for best in class staking rewards.
• SafePal Wallet: SafePal’s combination of hardware and software wallet solutions, integrated with Stader’s liquid staking, has provided users with high security and flexibility.

These success stories highlight the positive impact of partnering with Stader, demonstrating the value and benefits for wallet partners and their users.

How to Partner with Stader

Partnering with Stader is a straightforward process, designed to ensure smooth integration and successful collaboration.

For more information and to start the partnership process, visit our website or contact our support team.

Conclusion

Partnering with Stader Labs offers Web3 wallets a unique opportunity to enhance their service offerings and attract more users. With our innovative liquid staking solutions, robust security measures, and growing user base, Stader is well-positioned to drive growth and innovation in the DeFi ecosystem. We invite wallet developers and companies to explore partnership opportunities with Stader and join us in revolutionizing the staking experience.

To learn more about Stader Labs and explore partnership opportunities, visit our website and join our community. Together, we can shape the future of staking and decentralized finance.

We’re excited to announce that Stader has integrated Chainlink CCIP — the industry standard for secure cross-chain interoperability — across the Arbitrum, Ethereum, and Optimism mainnets. We’re leveraging CCIP to facilitate cross-chain transfers on our LST platform.

We selected CCIP as our preferred interoperability solution because Chainlink has a proven track record of maintaining the highest standard of security and reliability in the blockchain industry, with CCIP being the only interoperability solution achieving level-5 cross-chain security. Furthermore, CCIP is backed by the Risk Management Network — a separate, independent network that continually monitors and verifies cross-chain operations for suspicious activity. This additional layer of security is particularly important given historical industry exploits and the billions in user funds lost due to unreliable cross-chain infrastructure.

Thanks to its principle-driven approach, Chainlink has built one of the largest ecosystems in the blockchain industry and is being established as the industry-standard blockchain connectivity standard within capital markets. Connecting Stader to the Chainlink community and ecosystem offers a multitude of growth opportunities that help Stader get closer to its goals and increase ecosystem adoption.

Stader ensures robust security through continuous code reviews, regular external audits, and multi-sig admin accounts for contract parameter changes. In order to help secure the cross-chain LST platform, we needed access to a highly secure and reliable interoperability solution. After reviewing various solutions, we integrated Chainlink CCIP because it provides a multitude of important benefits and features, such as:

• Defense-in-depth security — CCIP’s consensus and interoperability layer is powered by Chainlink decentralized oracle networks, which have already secured tens of billions of dollars for smart contracts and enabled over $12 trillion in onchain transaction value. CCIP also features additional layers of protection and reliability via the Risk Management Network and Smart Execution.
• Simplified Token Transfers — CCIP features a plug-and-play solution consisting of audited token pool contracts that handle the complexity of burning and minting or locking and unlocking tokens across chains. CCIP token transfers also have additional security features like rate limits, and enable ecosystem partners to easily build new capabilities around a supported token via a single CCIP interface.
• Programmable Token Transfers — CCIP messages are programmable, meaning token transfers and arbitrary data transfers can be one atomic transaction. This enables instructions to be passed in the data payload regarding what to do with the tokens once they arrive at the destination chain.
• Extendable and future-proof — CCIP is built to support continuous updates, such as the integration of new blockchains, the introduction of advanced functionalities, and the addition of other defense-in-depth approaches to security. Thus, integrating CCIP eliminates future switching costs should new cross-chain functionalities be required.

“Industry-standard Chainlink CCIP enhances our LST platform’s capabilities. Its battle-tested security and reliability made it the ideal choice to enable secure cross-chain functionality. This integration helps strengthen Stader’s security and opens new avenues of growth and adoption for us within the DeFi ecosystem.” — Amitej, CEO and Founder at Stader Labs

About Stader

Stader is a non-custodial, smart contract-based staking platform designed to simplify the discovery and access of staking solutions. It provides essential staking middleware infrastructure for multiple Proof-of-Stake (PoS) networks, catering to retail crypto users, exchanges, and custodians. Stader’s liquid staking feature allows users to mint a token representing their staked assets, enabling participation in both network security and DeFi activities.

Utility, sustainability, supply and security are some of the key factors that amount to a robust tokenomics behind every token. Stader’s governance token SD is at the heart of Stader’s growth to $500Mn+ in TVL and over 100k+ stakers across the top 4 PoS blockchains Ethereum, Polygon, BNB and Hedera

But SD has become much more than just a governance token — it’s evolving for the future.

Stader’s partnerships with industry giants like Ledger, Metamask, Aave, and Balancer, have established a robust ecosystem across Stader’s LSTs. With $3Mn in annualized revenue, StaderDAO recognized the need to integrate this stellar business growth into SD’s tokenomics.

This isn’t just a simple update — it’s a full-scale SD Tokenomics Reboot. Four key levers are going to be pulled to transform SD into a powerful tool for growth and sustainability, setting the stage for the next decade of Stader’s evolution.

The Float Dilemma: Burning to Build

For a while, SD holders faced a common problem — a low float, and a high FDV for SD. To solve this, we introduced the SD Mega Burn.

On June 25, 2024, 30Mn SD tokens were burnt — 20% of the total supply — bringing the supply down from 150Mn to 120Mn tokens. This burn reduces the FDV and creates a leaner, more agile SD token. It’s the first step toward aligning the token’s circulating supply with Stader’s growth.

Buybacks and Balancing the Market

In a move to further strengthen SD, we initiated quarterly buybacks of SD utilizing 20% of its revenue. These buybacks aim to reduce the circulating supply and create a regular sink for SD, taking it out of circulation.

The first SD Buyback worth $150k went live on September 2, 2024. This and the future buybacks are made transparent and accessible for users to track using this wallet address:

0xEfE40Ff167A89cE3bAbdAd161d41D798Ca7116b2

To further make the tokenomics sustainable, StaderDAO proposed capping of rewards emissions. Initial estimates project 5x growth with 50% increase in rewards. Hence making SD even more rewarding going forward.

More Than a Token: New Utilities for SD

The future of SD isn’t just about supply management — it’s about utility. SD will now play a key role in offering insurance for Stader’s permissioned node operators. This insurance, backed by the SD Utility Pool, will cover slashing penalties for the ETHx permissioned node operators.

For SD holders, this means greater rewards for locking up tokens in the utility pool. With this new insurance system, SD evolves from a governance token into a multi-functional asset, helping secure the Ethereum network.

Looking Beyond: Stader’s New Horizons

Stader isn’t stopping at liquid staking!

New opportunities are being explored to see how we can expand our product offerings and create more long-term, sustained value for our community. These expansions will allow Stader to grow beyond its current ecosystem, bringing even more value to SD holders.

As Stader ventures into these new areas, SD will remain at the core — powering these innovations and ensuring that token holders benefit from every new product and partnership.

The Community’s Role in Shaping the Future

The most exciting part of the SD Tokenomics Reboot? It’s shaped by the community. Every step — from the token burn to the buybacks — has been approved through the Stader DAO.

This shared vision ensures that Stader’s growth benefits everyone. The journey to 10x growth is one that Stader will walk together with its community, making sure the tokenomics align with the Stader’s bold future.

The SD Tokenomics Reboot is more than just a tweak — it’s a transformation. With the Mega Burn, quarterly buybacks, and new utilities like insurance for permissioned node operators, SD is evolving to become more powerful, optimized, sustainable and utilitarian.

As Stader continues to push into new frontiers, SD will be there, at the heart of it all — powering growth, securing networks, and creating value for the entire community.

This is just the beginning. The future of SD is unfolding now.

Stader Labs is proud to offer native ETH liquid staking on Arbitrum. This allows you to stake your ETH, secure rewards, and maintain liquidity, unlocking new opportunities in the Arbitrum DeFi ecosystem.

3X Boosted Staking Rewards

Stader Labs is excited to announce a special campaign for all ETH holders on the Arbitrum chain. Starting from August 1st to August 31st, 2024, you can get a flat 10% annualized staking rewards (3X boost) by staking your ETH on Arbitrum with Stader.

This is an exclusive opportunity to maximize your rewards while enjoying the benefits of liquid staking on a top-tier Layer 2 network and accessing DeFi opportunities to make the most of your staked ETH.

Why Stake ETH with Stader on Arbitrum?

Accessible Staking on ETH L2

Stader Labs makes staking more accessible and efficient for users by providing ETH liquid staking on an ETH Layer 2 (L2) network. This integration enhances capital efficiency and offers a seamless staking experience.

Capital Efficient + Best in Class Rewards:

• Staking Rewards: Get best in class 10% annualized returns directly from staking your ETH with Stader.
• DeFi Rewards: Earn upto 60% annualized defi returns on top of 10% staking returns by joining ETHx liquidity pools on Arbitrum.
• Camelot: wstETH-ETHx
• Ramses: wstETH-ETHx
• Balancer: wstETH-ETHx
• Pancake Swap: ETHx-ETH

Campaign Rewards Breakdown

The flat 10% staking rewards constitutes of two parts:

• Base Staking Rewards: ETH staking rewards from Stader
• Boosted Rewards: ARB rewards, paid out within 10 days of the campaign ending.

Get Started Today!

Stake your ETH as soon as possible to maximize your rewards during the campaign. The earlier you stake, the higher your potential rewards!

For more details and to start staking, visit Stader Labs.

Disclaimer

Participation in this campaign and utilization of services provided by Stader Labs are subject to Stader Labs' Terms of Service. Rewards are settled daily based on ARB value and ETH staking APR, though these specifics are not highlighted within the blog.

Get ready for the grand finale of mega rewards with ETHx Restake Rush!

This exciting new campaign brings you unprecedented rewards and opportunities. Following the highly successful EigenBoost 3.0, which concluded after launching on April 16 at 4 PM UTC and providing up to 4 Million extra EigenLayer Points for ETHx restakers, we are thrilled to introduce ETHx Restake Rush.

Dive into this ultimate reward frenzy and maximize your benefits with even more substantial rewards. Stay tuned for more details on how you can participate and make the most of this incredible opportunity!

ETHx Restake Rush + EigenBoost 3.0 is valid only for the first 40k ETHx minted & restaked before 31st May.

Reward details for both campaigns are as follows:

ETHx Restake Rush (6th May - 31st May)

Make the most of your staked ETH with ETHx Restake Rush is here to help you unlock exclusive rewards. This limited-time opportunity is available for the first 40,000 $ETHx minted and restaked before May 31st, offering a variety of enticing rewards. The SD incentives accrued by users will be paid out on July 15th.

Reward Highlights

By participating in the ETHx Restake Rush, you can unlock:

• $400,000 in SD tokens
• 4 million extra EL points
• 2x Karak XP

Here’s how rewards break down across the platforms:

Kelp DAO

For every $ETHx restaked on Kelp DAO, you’ll receive:

• Up to $40 in SD tokens from Stader
• $15 in USDC from Kelp
• 100 extra EL points from Stader
• 1x Kelp Miles from Kelp

EigenLayer

Rewards for every $ETHx you restake on EigenLayer:

• Up to $40 in SD tokens
• 100 extra EL points

Karak Network

For every $ETHx restaked on Karak, you’ll receive:

• Up to $40 in SD tokens
• 2x Karak XP per $ETHx

How to Participate

1. Mint $ETHx: Head over to Stader Labs to mint your $ETHx.
2. Restake on Partner Platforms: Choose from KelpDAO, EigenLayer, or Karak Network to restake your $ETHx and start earning rewards.

EigenBoost 3.0 (16th April - 5th May)

Every ETHx restaked during the campaign period earns additional EigenLayer Points on top of standard EigenLayer Points. This foundational bonus ensures all participants benefit from their commitment.

Details for the rewards are as below:

• 4 Million EigenLayer Points:
  
  (a) Restake with EigenLayer or our LRT partners to earn 50 extra EigenLayer points.
  
  (b) Restake with Kelp to earn a total of 100 extra EigenLayer points (50 from Stader + 50 from Kelp).
• Bonus Kelp Miles: Get 125,000 Kelp Miles for each ETHx restaked, until 29th April. And 100,000 Kelp Miles per ETHx restaked from 30th April - 5th May.
• Bonus Rewards: Deploy rsETH on Zircuit to get Zircuit points and/or Pendle for approx 50% annualized rewards.

Users can choose to restake directly on EigenLayer or with any of the LRT partners: Eigenpie, Prime Staked ETH & Kelp DAO.

Exclusivity and early access benefits

The campaign targets the proactive and quick-to-act stakers, capping the offer to the first 40,000 ETH staked and restaked on EigenLayer or through LRT platforms such as Karak, Eigenpie, PrimeStaked and KelpDAO.

The restaking window starts April 16, 4 PM UTC till May 31, 4 PM UTC.

Join the Restaking Revolution

EigenBoost 3.0 & ETHx Restake Rush are not just regular campaigns; it’s a step towards dynamic Ethereum staking. Become a part of making Ethereum even more decentralized & secure by staking now while boosting your EigenLayer points in the process.

Win-Win.

Stake now.

Disclaimer: ETHx Restake Rush is not applicable for bespoke deals.

We’re excited to announce the integration of Chainlink CCIP — the industry standard for secure cross-chain interoperability — across the Ethereum and Arbitrum mainnets. We’re leveraging CCIP’s Simplified Token Transfer capabilities to facilitate cross-chain transfers of ETHx, enabling a more seamless and secure cross-chain experience for Stader users. Stader is also sponsoring the ETHx/ETH Chainlink Price Feed on Ethereum to enable broader ETHx adoption across DeFi.

We have selected CCIP as our preferred interoperability solution because Chainlink has the most proven track record of maintaining the highest standard of security and reliability in the Web3 industry. Furthermore, CCIP is backed by the Risk Management Network — a separate, independent network that continually monitors and verifies cross-chain operations for suspicious activity.

After reviewing various solutions, we integrated Chainlink CCIP because it provides a multitude of important benefits and features, such as:

• Time-tested security and reliability — CCIP’s consensus and interoperability layer is powered by Chainlink decentralized oracle networks, which have already secured tens of billions of dollars for smart contracts and enabled over $9 trillion in onchain transaction value. CCIP also features additional layers of protection and reliability via the Risk Management Network and Smart Execution.
• Secure Token Transfers — CCIP features a plug-and-play solution consisting of audited token pool contracts that handle the complexity of burning and minting or locking and minting tokens across chains. CCIP Token Transfers also have additional security features like Rate Limits, and enable ecosystem partners to easily build new capabilities around ETHx via a single CCIP interface.
• Programmable Token Transfers — CCIP messages are programmable, meaning ETHx transfers and arbitrary data transfers can be one atomic transaction. This enables instructions to be passed in the data payload regarding what to do with the ETHx tokens once they arrive at the destination chain.
• Future-proof — CCIP is built to support continuous updates, such as the integration of new blockchains, the introduction of advanced functionalities, and the addition of other defense-in-depth approaches to security. Thus, integrating CCIP eliminates future switching costs should new cross-chain functionalities be required.

“We’re excited to integrate the industry-standard Chainlink CCIP to help secure cross-chain transfers of ETHx. By leveraging CCIP’s level-5 security and advanced risk management infrastructure, we can help increase the adoption of ETHx across DeFi.” — Amitej Gajjala, Co-Founder of Stader Labs

About Chainlink

Chainlink is the industry-standard decentralized computing platform powering the verifiable web. Chainlink has enabled over $10 trillion in transaction value by providing financial institutions, startups, and developers worldwide with access to real-world data, offchain computation, and secure cross-chain interoperability across any blockchain. Chainlink powers verifiable applications and high-integrity markets for banking, DeFi, global trade, gaming, and other major sectors.

Learn more about Chainlink by visiting chain.link or reading the developer documentation at docs.chain.link.

Welcome to the Q1 ’24 Report of Stader Labs. It has been an eventful 2024 with new summits scaled and innovative projects launched. Here’s a comprehensive overview of the performance of what it has looked like till now.

Highlights

1. Current TVL stands at $675M, marking an impressive 600%+ y-o-y growth.
2. Users staking with Stader climbed to 96K+ users.
3. SD Utility Pool was launched and already has 1.8M+ delegated $SD in less than a month from its launch.

$SD

$SD is no longer just a governance token. It has now become a utility-bearing protocol with the launch of the SD Utility Pool.

SD Utility Pool

Launched on March 5 ’24, SD Utility Pool is the latest addition to our long list of product offerings. A first-of-its-kind product in the Ethereum LST space that:

▹ Rewards protocol token holders for contributing to the decentralization of Ethereum
▹ Enhances accessibility for NOs on ETH by eliminating their governance token exposure.

In less than a month since launch, it has $1.8M+ worth of $SD delegated & $367K+ worth of $SD utilized. The Pool currently offers a healthy reward of ~36%.

$SD can also be used to generate additional defi opportunities on ETHx, MaticX, and BNBx.

Here’s a list of TOP picks for $SD:

• ~43% rewards on SD/BNBx LP on Thena
• ~37% rewards on SD/ETHx LP on Balancer
• ~20% rewards on SD/MaticX LP on Balancer

Top DeFi opportunities across the Stader ecosystem

Let’s visit the BEST DeFi opportunities currently available on different protocols across the Stader ecosystem.

Stader x Ethereum

Launched last year, the Ethereum chain has grown into the biggest store of value for Stader’s Liquid Staking offerings. Currently, we’ve $466M+ TVL across 21K+ stakers. Recently ETHx, Stader’s LST on Ethereum, went live on Arbitrum & Optimism.

Here’s a list of top picks on Ethereum:

• ~105% rewards on ETHx/USDC in PancakeSwap
• ~80% rewards on ETHx/wstETH in PancakeSwap
• ~33% rewards on ETHx yield optimizer in Equilibra

Stader x Polygon

MaticX, Stader’s LST on the Polygon network, is the biggest LST solution on the chain with $150M+ TVL. Recently, we’ve also integrated with SafePal as their preferred staking partner on the same network.

Here’s a list of top picks on Polygon:

• ~20% rewards on MaticX/SD in Balancer
• ~12% rewards on Leverage staking in CIAN
• ~8% rewards on wMaticX/Matic LP in Balancer

Stader x BNB

On the BNB front, we are making major headways in Thena. Here are the top picks you can benefit from:

• ~48% rewards on BNBx/BTC LP in Thena
• ~43% rewards on BNBx/SD Pool in Thena
• ~13% rewards on BNBx/BNB LP in Thena

That’s a wrap for our Q1 ’24 Report. Meanwhile, we’re hosting SD Splash Season to celebrate the launch of the SD Utility Pool. Rewards and campaigns such as gas-free delegation are up for grabs! Interested in taking part? Drop your mail here to get the latest updates straight to your inbox.

The Ethereum ecosystem is rapidly evolving, and Layer 2 solutions are leading the charge in scaling the network. These L2 blockchains offer faster and cheaper transactions while inheriting the security of the Ethereum mainnet.

What if you could bring your ETHx to these L2 solutions for more accessible and rewarding DeFi opportunities at a fraction of the gas cost?

Well, the wait is over! Thanks to the power of XSwap and ChainLink’s Cross-Chain Interoperability Protocol (CCIP), you can now bridge your ETHx to Arbitrum and Optimism, unlocking a whole new world of possibilities for DeFi with ETHx and beyond.

What is ChainLink’s CCIP?

ChainLink’s Cross-Chain Interoperability Protocol (CCIP) is a technology that enables secure and trustless communication between blockchains. By leveraging a decentralized network of oracles, CCIP facilitates the seamless transfer of data and assets across different chains, opening up a multiverse of cross-chain applications. Learn more about it here.

Bridging ETHx to L2 with XSwap and CCIP

XSwap, a DEX built on Ethereum, has integrated CCIP to allow users to bridge their assets to Ethereum Layer 2 solutions.

ETHx’s latest integration with ChainLink and XSwap will now enable users to bridge their ETHx to Arbitrum and Optimism.

Here’s a step-by-step guide on how you can bridge your ETHx to Layer 2 solutions using XSwap:

• Visit this Xswap Bridge dApp here
• Now connect your Ethereum wallet

• In the “You Bridge” section, select the token as ETHx and the chain as Ethereum and enter the amount you wish to bridge

• In the “You Receive” section, select the token as ETHx and your desired chain to bridge to

• Click on “Approve” and approve the transaction on your wallet

What’s next?

With your ETHx now accessible on Arbitrum or Optimism, the possibilities are endless.

This is just the beginning! Soon you would be able to participate in DeFi opportunities and earn extra rewards with ETHx on L2s.

Stay tuned as we unveil exciting DeFi integrations and opportunities for ETHx on Layer 2 solutions.

ETHx is committed to the scalability of the Ethereum network and unlocking the full potential of ETHx. By partnering with Xswap and ChainLink’s groundbreaking CCIP, we are at the forefront of the multi-chain revolution. Xswap and CCIP enable ETHx to transcend the limitations of Layer 1 and thrive on Layer 2 scaling solutions like Arbitrum and Optimism. Unleash your ETHx, and let your rewards soar to new heights with ETHx on L2s.

Start by staking your ETH here.

Summary
Stader recently announced the Phase 2 of ETHx tokenomics with the launch of SD Utility Pool — a first-of-its-kind product in the ETH LST space. It empowers permissionless ETH node operators to participate in ETH decentralization with zero exposure to protocol token, all the while making best-in-class rewards. This blog explores in detail the economics of using the Pool and the special incentives planned for our early champions.

Introduction
ETHx is committed to making ETH node operations the most accessible and rewarding in the ecosystem. At launch, ETHx introduced the lowest capital requirement for node operations with just 4 ETH and 0.4 ETH worth of SD (Stader’s protocol token). This enables an impressive 8x leverage and 42% higher rewards (with additional high rewards on bonded SD) as compared to solo staking. ETHx also partnered with Avado and Allnodes to offer lowest cost infrastructure solutions for ETH node ops.

The initiative received strong support and we are proud to have a family of 250+ node operators supporting 1850+ permissionless validators for ETHx today.

But we didn’t want to settle. To further enable more accessibility of ETH node ops, we have come up with a first-of-its-kind solution called the SD Utility Pool.

In our conversations with node operators, one concern that persisted was the treasury guardrails on protocol token exposure. The min 0.4 ETH worth of SD bond required per validator limited node operators from benefiting from the reduced capital requirement. SD Utility Pool solves for this by enabling validators without direct protocol token exposure, eliminating the need for SD ownership.

Operators can choose the extent of SD exposure by choosing from 100% self bond, 100% utilisation from Pool or taking a hybrid approach. We have covered the economics of using SD Utility Pool to scale in detail below.

Utilization economics
The SD available for node operators to bond from the Pool shall be uncollateralized in nature. They can utilise up to 1 ETH worth of SD per validator. They shall also continue to receive the strong double digit rewards on the SD bond, similar to how they would receive if they had procured the SD by themselves.

However, a utilization fee shall be levied against the SD used. It is currently fixed at 10% but shall be made algorithmically dynamic in future upgrades, depending upon the DAO vote.

Thus the net rewards the node operators receive shall depend upon the portion of SD bond covered by utilizing from the Pool.

Let us understand this better with 2 examples:

Example A: 50% Pool utilization

Example B: 100% Pool utilization

We have created this ETHx Node Operator Reward Simulator for our node operator partners to assess the impact of various ETH & SD investment on their rewards profile.

$50,000 Early Champions Giveaway
Stader has also allocated $50,000 for the early node operators utilizing from the Pool. Depending upon the count of validators, a node operator can receive up to $2000 over and above the rewards received on node operations. The rewards are being distributed on a first come first serve basis. Read more about the giveaway here.

Scale your ETH node ops with ETHx
SD Utility Pool is ready for action with node operators using it to scale with ETHx and benefit from the 85% lesser capital requirement per validator as compared to solo-staking. Current partners are also using it to top up their current SD bond and receive higher rewards.

We have created detailed docs and step-by-step guides to help node operators with the set-up process. Unlock the below benefits as an ETHx node operator scaling with the SD utility pool:

• Lower capital requirements: Just 4ETH per validator needed vs the earlier 4.4 ETH(4ETH + 0.4ETH in SD) required
• Flexibility to choose protocol token exposure: Node operators can now choose to have zero or partial governance token exposure.
• Growth without compromising treasury guidelines: NOs will no longer be constrained by treasury limits on governance token exposure to scale up ETHx validators.

SD Utility Pool: Another step towards a more empowered Ethereum ecosystem
ETHx is committed to maximizing rewards for node operators while minimizing investment and operational hurdles. Phase 2 of ETHx, spearheaded by the SD Utility Pool, is a leap towards more accessible and efficient node operations, aligning with our goal of a stronger, more decentralized Ethereum network.

SD Pool is now live!

Check out the detailed docs here.

Please feel free to reach out to us for any questions or concerns on Discord.

Psst: Don’t forget the $50,000 giveaway for our early champions. Drop your email here to get all the details..

Summary

Stader is marching steadily towards its goal of providing a strong protocol token supported by multiple use-cases and stellar performance. It recently announced Phase 2 of ETHx tokenomics led by the launch of Utility Pool — a one-of-its-kind product designed to enhance $SD utility while enabling a more decentralized and secure ETH liquid staking network. In this blog, we shall cover the intent behind the product, rewards profile and special incentives aligned for early delegators.

Introduction

Stader has constantly endeavoured to strengthen its protocol token $SD by adding available use cases & enhancing its utility. We started with governance and built upon it with DeFi integrations. The launch of ETHx further boosted the growth of $SD by requiring every permissionless node operator to lock in a minimum of 0.4 ETH worth of SD per validator. Under this initiative, 2.4Mm+ $SD has been locked in by 225+ node operators.

Stader recently crossed the significant milestone of $500 Mn in TVL. ETHx accounts for 70% of that TVL and shall be at the forefront as Stader embarks on its journey to be a protocol with $1 Bn TVL.

A major lever in this growth shall be the launch of Utility Pool, an initiative rewarding $SD holders for contributing to ETH decentralisation by supporting permissionless node operators. Through Utility Pool, SD holders can assign their SD tokens to node operators who wish to utilise the same to cover the bond requirement for their ETHx validators. This arrangement enables node operators to maintain exposure solely to ETH, while both existing and new SD holders gain double digit rewards for their contribution to ETH decentralisation.

Pool economics & early bird boost:

SD Utility Pool shall generate high double digit rewards for the delegator. These rewards shall be generated from two sources:

• Utilisation fee: The node operators shall be paying a utilisation fee of 10% for the SD they use. The net rewards accrued shall depend on Pool utilisation. At 90% utilisation, that would be: 90% pool utilisation * 10% rewards = 9% net APR.
• $SD Emissions: Stader shall release early extra 11,500 $SD in the launch month to incentivise the early delegators. That means an annualised rewards rate of 30% at 500k $SD in the Pool and 10% at 1.5 Mn $SD.

The two sources combine to give rewards of ~40% and more for early joiners.

Let us understand this with an example.

Why delegate to the SD Utility Pool?

The SD Utility Pool is a unique, first-of-its-kind opportunity in the Ethereum LST space that is rewarding protocol token holders for contributing to the decentralisation of Ethereum. The node operators shall be required to pay a utilisation fee for the SD that they bond from the Pool. This fee and the additional SD emissions for early adopters shall be added back to the pool, resulting in a strong double digit reward for SD delegators to the utility pool.

Depositing to the SD Utility Pool unlocks the following benefits for the delegators:

1. Contribution to ETH decentralization: SD deposited by delegators will be utilised by ETHx node operators to spin validators, reducing the capital required and eliminating the governance token exposure. This will enable more validators to enter the ETH ecosystem, thereby reinforcing decentralization.
2. High double digit rewards — Delegators shall receive consistent double digit rewards with no lock-up. The rewards are generated via the utilisation fees of 10% from node operators and guaranteed 10% additional rewards for early adopters via $SD emissions.
3. Greater value accrual to SD — As more SD gets locked in by permissionless ETHx node operators, SD will accrue greater value. This will enable higher incentivization via SD for ETHx users, increasing demand for ETHx. The increased demand would grow the ETHx TVL, creating greater demand for the SD in the utility pool. This virtuous flywheel will in turn benefit SD holders.

Additional resources:

The SD Utility Pool is intended to be as intuitive and easy to use as possible. A seamless and intuitive UI has been developed to assist SD delegators with the delegation, withdrawal and claims process.

The delegators can start with as less as 1 $SD. There is no lock-in period, meaning a withdrawal can be requested at any given time. The request shall be fulfilled by the unused SD in the Pool. In the unlikely event that a request is unfulfilled for 10 days, the treasury shall step in to inject liquidity into the Pool.

The delegators shall, however, need to wait for a unbonding period of 7 days before which the tokens can be claimed.

Detailed guides have been prepared for the deposit, claiming and withdrawal processes and can be accessed here.

Call for delegation:

By mid-2024, we aim to integrate new 3000+ permissionless validators, with the Utility Pool playing a crucial role in this expansion. This initiative intends to foster a deeper involvement of SD holders in the ETHx operations and building a more active community.

Stader remains committed to enhancing the value and rewards for our holders through continuous innovation. We encourage you to become a part of the SD utility Pool to leverage its upcoming growth.

For those looking to acquire SD or wishing to increase their holdings, we have compiled this list of avenues for obtaining SD.

You can also stay informed about the progress by sharing your email us here. For any enquiries or feedback, we welcome you to join us via Twitter, Discord or Telegram.

Stader, is proud to announce its partnership with Frontier, a ‘Staking as a Service’ product conceptualized by the Aave Chan Initiative (ACI) under the Aave DAO umbrella.

In this groundbreaking initiative, Aave DAO will be spearheading 32 ETHx validators, each requiring 4 ETH, totaling 128 ETH. ETHx allows node operators to spin an Ethereum validator with just 4ETH i.e. 85% lower capital vs solo staking, enabling an 8X leverage that generates 42% higher rewards.

ACI will take the helm in operating “Frontier,” managing validator nodes on behalf of Aave DAO. This initiative serves a dual purpose: to diversify the platform’s staking strategy while further decentralizing the Ethereum network.

Notably, the launch of “Frontier” marks a historic milestone, positioning Aave as one of the first DAOs to undertake the operation of Ethereum nodes. This bold step underscores Aave’s unwavering commitment to advancing the ethos of decentralization in the crypto sphere.

For the Stader community, this collaboration represents a moment of immense pride and gratitude. Partnering with a vanguard like Aave reaffirms our dedication to fostering decentralization and underscores the pivotal role communities play in shaping the future of Ethereum staking.

Marc Zeller, the visionary founder of ACI, aptly captures the significance of this initiative, stating, “Frontier represents a significant leap forward for Aave DAO. By proactively running nodes and expanding our staking strategy, we not only deepen our integration with the Ethereum network but also set a precedent for DAOs worldwide.”

Echoing this sentiment, Amitej Gajjala, the co-founder of Stader Labs, emphasizes the honor of collaborating with ACI and Aave DAO on this transformative journey. Gajjala asserts, “Stader is honored to partner with ACI and Aave DAO to propel Frontier forward. This initiative is pivotal in advancing the decentralization of the Ethereum network, underscoring the indispensable role that DAOs and communities play in this paradigm shift.”

As we embark on this collaborative journey with Aave DAO and ACI, we invite you to join us in shaping a future where decentralization reigns supreme. Together, let us pave the way for a more inclusive, transparent, and equitable financial ecosystem. The revolution is here, and Stader is proud to be at the forefront of change.

Stader Labs is a multi-chain LST protocol live across Ethereum, Polygon, BNB & Hedera with $580M+ TVL, 250K+ community members & 85K+ stakers. Our liquid staking solution on Ethereum, ETHx, alone has $400M+ TVL along with 240 node operators & 3700+ validators securing the Ethereum network in just 7 months of launch.

EigenLayer LST caps resume on Feb 05, 2024. With ETHx accepted as collateral on EigenLayer, Stader is excited to announce EigenBoost 2.0 and EigenTurbocharge, an exclusive way to earn extra EigenLayer Restaked Points.

Introducing EigenTurbocharge (Feb 06, 6 AM UTC — Feb 09, 8 PM UTC)

To make the most out of the ongoing EigenLayer cap unpause, Stader is bringing an exclusive bonus of 1Mn Extra EigenLayer Points for new ETHx users, starting Feb 06, 6 AM UTC to Feb 09, 8 PM UTC.

Under EigenTurbocharge, users will get 50 extra EigenLayer Points for every ETHx minted and restaked till Feb 09, 8 PM UTC. The EigenTurbocharge campaign is applicable for the first 20k ETH staked with Stader and restaked starting Feb 06, 6 AM UTC.

Users can choose to restake directly on EigenLayer or with any of the LRT partners, Kelp DAO, Eigenpie and Prime Staked ETH.

This campaign is on top of the ongoing EigenBoost 2.0 campaign. (more details below)

Introducing EigenBoost 2.0 (Jan 23, 8 PM UTC — Feb 09, 8 PM UTC)

With EigenBoost 2.0, there’s a total of 1,210,000 extra EigenLayer Points up for grabs! So far, upon deposit, every LST provides the same amount of EigenLayer Points.

Stader is offering 1,210,000 extra EigenLayer points on top of the standard EigenLayer points.

100,000 extra points EVERYDAY from Jan 23 to Feb 02, 8 PM UTC and 30,000 points EVERYDAY from Feb 02, 8 PM UTC to Feb 09, 8 PM UTC.

Restake ETHx on Kelp, EigenPie or Prime Staked ETH starting today to be eligible. The earlier you stake and the more you stake, the greater your EigenBoost will be!

(Daily extra points till Feb 02 (100,000) * Number of days (10))
+
(Daily extra points from Feb 02 till Feb 09 (30,000) * Number of days (7))
=
Extra EigenLayer Points for ETHx (1,210,000)

To earn extra EigenLayer points, all you have to do is:

1. Mint ETHx with Stader anytime

2. Deposit ETHx via Kelp DAO, Eigenpie, Prime Staked ETH or to EigenLayer before Feb 09

This time around, too, Stader will be restaking ETH from its own treasury on EigenLayer and distributing the EigenLayer Points accrued proportionally amongst ETHx restakers.

What happens to EigenBoost 1.0 users?

The EigenBoost 1.0 saw ~49K ETHx restaked on EigenLayer. This program started on Dec 22 and concluded on Jan 03, 2024 once the global LST caps on EigenLayer were paused. Eligible participants of EigenBoost 1.0 will continue to accrue boosted EigenLayer Points till March 31, 2024. You can learn more about EigenBoost 1.0 here.

Disclaimer:
Subject to feasibility of downstream processes on EigenLayer, other LSTs and restaking protocols.

Please note that when EigenLayer points become transferable (either through a token or other mechanism), Stader pledges to distribute all of its EigenLayer Point earnings as boost to eligible ETHx users.

Summary:
Stader is delighted to announce the launch of $SD Utility Pool — a strategic initiative under Phase 2 of ETHx tokenomics that enables node operators to run validators with ETH-only exposure. While ETHx has received tremendous support with 1300+ validators bonding 2.25 Mn+ $SD with us, treasury limitations and market movements have often hindered their ability to scale effectively. $SD Utility Pool alleviates these pain points by providing an avenue that solves for the above constraints and empowers permissionless node operators to focus on what they do best — decentralise Ethereum.

Introduction:
ETHx’s journey to innovate within the Ethereum ecosystem comes from a deep understanding of the unique challenges faced by the node operator community.

In Phase 1, we revolutionised the game for node operators by slashing the capital requirement per validator by 85% vis-a-vis solo staking. ETHx enabled them to run validators with just 4 ETH (and a modest 0.4 ETH in SD) per validator, offering an impressive 8x leverage. This move amplified node operator returns by unlocking 42% higher rewards just on the ETH invested. The double digit rewards on bonded SD were over and above. While ETHx design lowered the capital required for Ethereum node ops, low-cost infrastructure solutions in collaboration with Avado and Allnodes knocked the technical barriers down.

In the short 6 months since launch, we have grown to 200+ node operators running 1300+ ETHx validators. We are now taking the next big step in making Ethereum node ops more accessible and rewarding with ETHx.

While interacting with the node operator community, a key limitation that emerged is the quantum of governance token exposure that was feasible within their capital management guidelines.

Here are some of the common concerns received:

“We are into node ops business and want to focus exclusively on that. Capital management with multiple tokens could be a distraction and takes away bandwidth I currently deploy exclusively on node ops.”

“We believe in ETHx but scaling beyond this breaches the treasury guidelines regarding investment in governance tokens. If you can solve for that, we can scale further.”

“I have the required ETH but don’t have the capital for governance token purchase. Can I still get started on ETHx?”

We heard our node operator family and are excited to introduce the SD Utility Pool, a critical growth lever of ETHx Phase 2, designed specifically to address these pain points.

SD Utility Pool

The SD Utility Pool enables node operators to run ETHx validators with zero governance token exposure by eliminating the need to own SD. They can just utilise the SD from the Utility Pool for a nominal fee as required and adjust their SD position as per their convenience at no additional cost.

Here’s how it addresses the key issues:

• Optimised capital requirement: Operators can run validators with ETH-only exposure eliminating the need to procure and manage an additional asset (governance token).
• Circumventing treasury limits: By using $SD from the Utility Pool, bigger operators can bypass treasury restrictions around holding governance tokens, enabling them to scale operations without breaching internal guidelines.
• Easier balancing of governance token position: Node operators can incrementally adjust their SD bond in tandem with price movements of ETH & SD by utilising from the Pool as and when required.

Enhanced flexibility for higher capital efficiency

Our mission with the $SD Utility Pool is to continue lowering financial barriers and empowering node operators with choice. Node operators now have the flexibility to run ETHx validators without $SD exposure while maintaining lucrative rewards. They can source the necessary $SD in any of the following ways — 100% from the pool, partially from the pool or complete self-bonding.

Each validator can source upto 1 ETH of SD from the Utility Pool. While new validators can use it for entering the ecosystem, existing ones can top up their current SD bond.

Thus retail operators and institutions, who have conventionally stayed away from liquid staking solutions, can achieve higher capital efficiency on their invested capital via the 8x leverage made possible by ETHx’s 4 ETH bond.

Moreover, the introduction of the Utility Pool doesn’t change the rewards equation. The node operators continue to receive SD rewards against the amount bonded on their validator.

SD Utility Pool: Another step towards a more empowered Ethereum ecosystem

ETHx is committed to maximizing rewards for node operators while minimizing investment and operational hurdles. Phase 2 of ETHx, spearheaded by the SD Utility Pool, is a leap towards more accessible and efficient node operations, aligning with our goal of a stronger, more decentralized Ethereum network.

Your feedback is the fuel that drives our innovation. As we put the finishing touches on the SD Utility Pool, we’re eager to hear from you. Stay updated on the latest developments and join our community by dropping your email and connecting with us on Discord.

Summary

We’re excited to announce Phase 2 of ETHx tokenomics. Led by the launch of the SD Utility Pool, this is designed to be a positive sum experience for two sets of users: SD holders and ETHx node operators. In this blog, we’ll explore the benefits for SD holders and how they stand to get additional rewards by delegating their SD.

Introduction

At Stader, our aim has been to constantly unlock more utility across our offerings. Our native protocol token, SD, is no different. So far, we’ve explored use cases across governance and DeFi. Liquidity pools for SD are live across our liquid staking solutions, namely Ethereum, BNB, Polygon, etc., with some of these opportunities providing up to 55%+ additional rewards. Over time, we have built a strong community of 15.7K+ SD holders with 33.8M+ SD in circulation.

With ETHx, we continued to uphold the spirit of innovation with the bond requirement of 4 ETH for permissionless node operators. For each validator to run, 0.4 ETH in SD had to be put up as collateral. This has led to more than $2.6M+ in $SD being bonded so far, setting into motion a growth flywheel for SD in Phase 1.

In less than 6 months of launch, ETHx has gone on to become Stader’s largest liquid staking solution by TVL. With 75K+ ETH staked , ETHx currently accounts for 50% of Stader’s overall TVL. Given this steady growth, we’re set to enter phase 2 of ETHx + SD tokenomics.

This phase will be spearheaded by the launch of the SD Utility Pool, a marquee initiative by Stader that unlocks a two-fold opportunity for SD holders; rewards and utility. This Utility Pool enables SD holders to delegate their SD to node operators looking to run ETHx validators. In this process, node operators can continue to have ETH-only exposure, while SD holders (current and prospective) earn rewards on their delegation.

SD Utility Pool

Detailed conversations with two of our key stakeholder groups revealed the following insights.

1. SD holders: SD holders want to participate beyond governance and seek enhanced utility and rewards from SD
2. Node operators: ETHx node operators want to scale participation but struggle to hold a big governance token position given their treasury management guardrails. They’d like to receive delegation support from current SD holders

The SD Utility Pool unifies two of our key stakeholders in a model that lends itself to both. SD holders can deploy their SD to the Utility Pool while earning double digit rewards. Node operators can then source the SD required for setting up an ETHx validator for a nominal net fee. Our thesis is that as ETHx scales, more node operators will join the permissionless set, fuelling the demand for SD even further and contributing to its growth.

Here’s a simple flywheel visualizing this.

In summary, here is how this plays out for SD delegators.

When the demand for ETHx goes up, more permissionless validators get added to the set to support this demand. As the number of validators go up, the SD Utility Pool sees even more adoption. This leads to validator fees steadily coming in, which translates into more rewards for SD delegators. This further strengthens demand and value of SD, resulting in higher rewards for ETHx stakers across DeFi. Enhanced staking and DeFi rewards further fuel TVL growth resulting in the SD Tokenomics Flywheel.

With the Utility Pool, SD holders can:

• Delegate any amount of SD (with a minimum amount of 1 SD)
• Earn additional double digit rewards

This assigns a key role to SD holders within the ETHx ecosystem, thereby solving for a long standing community request. In the long run, this acts as a lever for increased demand for SD.

Call for delegation

ETHx has continued to grow at a rapid pace in the ~6 months that it has been live on mainnet. A quick overview of stats tells you that it has a TVL of $170M+, 200+node operators and 2.2 M+ $SD bonded. This brings the QoQ growth to 378%.

By the end of H1 2024, the target is to add 3000+ permissionless validators, for which the Utility Pool will serve as a major catalyst. It is also positioned to be a key force in enabling a more engaged community of SD holders by involving members in ETHx operations.

As always, our aim is to continue innovating for you, unlocking more utility and rewards. We invite you to join the SD Utility Pool and make the most of its growth. We’re in the final stage of development and will soon roll the final product out.

If you haven’t gotten SD yet or are looking to top your position up, here’s a list of options for procuring SD.

To remain updated with the progress, share your email with us. For any questions/feedback, please feel free to reach out to us on Twitter, Discord or Telegram.