Stader ETHx Liquid Staking

Stader is a non-custodial smart contract-based staking platform that helps you conveniently discover and access staking solutions. We are building key staking middleware infra for multiple PoS networks for retail crypto users, exchanges and custodians.

Liquid staking allows users to mint a token that represents their staked assets and grows in value as staking rewards accrue. The token will have wide acceptance in Defi and hence allow users to participate in both securing the network via staking and pursue Defi

Stader is a secure liquid staking solution. We do continuous review and testing of all code. We perform regular audits of smart contracts by external auditors (10+ successful audits across multiple chains). We use Multi-sig admin accounts for changing smart contract parameters.

The senior leadership at Stader Labs is comprised of a dynamic leadership team with 60+ years of total experience in management & leadership roles across technology, growth & strategy.

• Amitej, CEO and Co-founder: 10+ years with Strategy consulting and Start-up management | Ex Swiggy, ATKearney | IIT & IIM Alumnus
• Sidhartha, CTO and Co-founder: Deep expertise in crypto mining | 10+ years building and scaling tech applications | Columbia and IIT Alumnus

• Staking rewards: Liquid staking enables you to get auto-compounded rewards from staking your crypto tokens anytime.
• Enhanced liquidity: You can access staking rewards anytime by converting your tokens into liquid tokens, avoiding lock-up periods. You can freely trade or use these liquid tokens in DeFi protocols and unlock additional rewards on top of staking rewards.

Liquid staking is a great option to enjoy flexibility and get staking rewards without locking up your tokens.

Tokens eligible for Liquid Staking are the native tokens of Proof-of-Stake blockchains. Stader is available on some of the most popular ones, such as Ethereum, Polygon, Hedera, BNB, Fantom, Near, and Terra 2.0.

Liquid staking enables you to access your staked tokens without locking them up. The potential rewards achievable through liquid staking may vary from one platform to another and from one network to another. 

To know more about the rewards you can get for each blockchain on Stader, you can visit that respective blockchain’s dApp, where you can view the staking rewards percentage and the additional DeFi options available for that particular blockchain

The most common risks associated with liquid staking include:

• Network risk: Risks related to the specific protocols and networks used in liquid staking can influence the safety and reliability of the staking process.
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• Market risk and volatility: The value of liquid tokens can fluctuate based on market conditions, affecting the overall rewards and liquidity. 
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• Smart contract risk: Liquid staking relies on smart contracts. These could be vulnerable to hacking or technical issues in certain unlikely scenarios. 

It is important to measure the risk-reward aspect of liquid staking before deciding whether to use it. If you are considering liquid staking, it’s important to choose a reputable platform and check the security measures deployed by them.

The end-to-end steps in the liquid staking process are as follows:

Step 1: Transfer your crypto tokens to any preferred wallet such as Metamask, Ledger, Coinbase Wallet, etc.

Step 2: Select your preferred liquid staking platform, such as Stader Labs, and the network/blockchain’s native asset that you want to stake in, such as Ethereum, Polygon, Binance, etc.

Step 3: Connect your wallet to the platform and enter any amount of tokens that you are interested in staking. You will be able to view the estimated liquid tokens that your stake amounts to and the associated gas fee of the transaction.

Step 4: Once you confirm the transaction, the liquid staking provider’s smart contract will stake your assets on your behalf and issue their liquid tokens in return to you. 

Step 5: You are now eligible to receive staking rewards, as well as use the issued liquid tokens for trading, lending, borrowing, liquidity mining, and other DeFi activities for additional rewards.

Liquid staking is a convenient and flexible way to get staking rewards on your crypto tokens. It gives you access to stake your assets without locking them up, which can be used in various ways.

To unstake your liquid staking tokens, you typically need to follow these steps:

Step 1: Access the dApp platform where you have initially staked your tokens. 

Step 2: Look for the "Unstake" option to redeem your underlying tokens.

Choose the amount of tokens you wish to unstake. Some platforms may allow you to unstake all your tokens simultaneously, while others may require you to unstake in smaller increments. Stader allows you to unstake your tokens at once. 

Step 3: Confirm your request to unstake the chosen amount of tokens. Depending on the network/blockchain, a waiting period might be known as the "unbonding period" before you can fully withdraw your tokens. 

This period is set to ensure the network's security and varies depending on the blockchain. Checking the transaction [gas] fees before unstaking your liquid tokens is also beneficial. 

Step 4: Allow the platform to complete the unstaking process. During the unbonding period, your staked tokens won’t be immediately available for withdrawal, but you will receive them after the period elapses. Because in the unbonding time, your staked tokens are locked and inaccessible after initiating the unstaking process.

Step 5: Once the unbonding period ends, the staked tokens will be released, and you can go to the "Withdraw" option on Stader. 

You can also go to one of the Decentralized Exchanges (DEXes), where a Liquidity Pool for the LST and the underlying asset has been set. You could immediately swap your liquid staked tokens for your native asset without delay or an unbonding period. 

You will have to check the depth of the liquidity and the price impact of your swap, as well as consider gas fees and the time it takes in each chain to validate the transaction. 

Remember that the steps and options for unstaking may vary depending on the blockchain and liquidity provider you use for liquid staking. Always review the platform's guidelines and user instructions for a smooth unstaking process.