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My content today will majorly be focused on a new Defi staking platform built on Terra blockchain which offers the most convenient and safest way to maximize your returns on staking. This platform is known as Stader Labs.
Stader is building native staking smart contracts across multiple chains which includes Terra, Solana, Etherium and many others and the project is also building an economic ecosystem to grow and develop solutions like YFI-style farming with rewards, launchpads, gaming with rewards such as play to earn, liquid staking solutions, and many more.
This implies that users can earn great yields and staking percentage whenever they stake Luna (Terra) on Stader Labs via it auto-compounding feature. Stader is also focused on unlocking the platform approach and adopting third parties to develop several staking-related applications on top of Stader infrastructure. This will give rise to more Project collaboration and partnership in future.
The team behind Stader Labs strongly believe more in the prospect of Proof of Stake (PoS). They believe PoS networks will grow at a much faster pace than the rest of the crypto market and within a short period, PoS networks will come to dominate the market cap of all digital assets. As we all know that staking is a fundamental component of a PoS network. The capital staked acts as direct security against any attacks on the network and this implies that staking is here to stay and it's also the future. Stader Labs will definitely increase the adoption of staking activities through it's introduction to staking pools, delegation and reward incentives.
It's also good to know that Stader Labs project was able to generated a seed fund of four million dollars led by Pantera capital and other major investors. It was also stated by the team that the generated seed fund will be used to accelerate product development across multiple blockchains and marketing efforts geared toward a global crypto audience and adoption. Also, the project also plans to build native smart contracts for staking on multiple blockchains aiming to cover five to six PoS blockchains over next year. Some of the blockchain will include Near, Polkadot, Ethereum, Polygon etc using the generated seed fund. Lastly, they also plan to build APIs to offer end-to-end staking solutions for exchanges and mainstream fintech apps, tapping into an underserved financial demand for high-quality staking products among retail crypto investors.
When it comes to Proof of Stake, there are three essential key features we can't do without and in fact I will say these three key items are the major core aspects of any Proof of Stake (PoS) network system. These three features are Delegators, Networks and Validators.
#1 Delegators
In Proof of Stake mechanism, the number of coins or tokens being staked will lead to the validation of new blocks on the blockchain. This implies that users can lockup certain quantity of tokens as a stake and this give such users validation rights for the next new block. The higher the number of coins staked by the users, the higher the chances of getting more validation right depending on the amount of staked tokens.
When it comes to Delegated Proof of Stake (DPoS), there's a slight difference here as regards to the delegated rights. In this type of system, users are allowed to stake coins themselves but they don't have the right to validation. Stakeholders or Project team are responsible for providing delegation rights by recommending or listing available validators based on their reputation and level of honesty or trustworthiness.
This type of system is adopted by Terra (Luna) and I'm quite sure you can also observe series of validators whenever you intend to stake your Luna tokens on Terra Station. A good examples are Orion.Money, Figment, NOD Games, Hashed and many others.
According to Stader Labs, delegators tend to face more complex problems surrounding project discovery and staking management of some specific coins. These can be observed in the Node selection due to the fact that most delegators don't understand the complex performance metrics and risks of staking.
Stader Labs will help to solve this problem by adding insurances to the pools, curating a few nodes, and spreading the delegated capital across them.
#2 PoS NETWORK
According to Stader Labs white paper, one of the major challenges encountered by some Proof of Stake Network is that they face stake centralization issue. Stader Labs will also help to bring the best experience for users who wishes to stake on their platform by adopting the best staking networks for users.
#3 VALIDATORS
Coin owners with staked their coins are known as validators in a Proof of Stake system. The validators are selected to mine or validate the block by randomly selecting the eligible user who gets to mine.
One of the major challenges encountered by validators is that delegators monitor validators’ performance, often reacting to unsatisfactory validator performance by re-delegating to new validators which makes it very a tedious process. Stader Labs also plans to solve this type of problem which helps to bring more best experience to users.
Stader Labs has a native token known as SD Token. The token has a total supply of 150,000,000 SD. The token will be used as governance token to propose and vote on policies related to validator pool selection, validator selection, changes in methodologies, and more. Also, Validators will stake a minimum amount of Stader tokens and percentage of delegations to the pool will be proportionately allocated based on Stader tokens staked. In addition, SD token will be adopted as a means to reward users who provide liquidity for stakers.
From the tokenomics shown above, 36% will be used in the Stader Pool to reward stakers, liquidity provider and farmers. 4% of the available tokens will be sold to the public, 11% will be used as the ecosystem fund, 15% will be used as DAO fund, 17% will be disbursed on private sales while the remaining 17% will be used distributed to the team and advisors.
Stader will generate their revenue by deducting 10-20% distribution fees on validators commissions, if elected by governance stakers. Also, 2-10% will be deducted as management fees on rewards, if elected by governance stakers and lastly there will be 5-10% commission on staking rewards, if elected by governance stakers.
You can earn more additional benefits such as airdrops, earning free SD tokens, auto-compounding features and many other great benefits when you stake Lunax on Stader. This can be done by converting Luna into Lunax using Terraswap or Coinhall. LunaX is an auto-compounding accrual token (similar to aUST) that can be minted when users stake with Stader using the liquid staking pool. Users also have access to weekly airdrop and staking rewards whenever they stake Lunax on Stader.
@hardaeborla