Stader Labs Unveils Phase 2 of ETHx Tokenomics with Launch of SD Utility Pool

Stader Labs introduces Phase 2 of its ETHx tokenomics with the launch of SD Utility Pool, an innovative mechanism that ties its SD token more closely to the Ethereum ecosystem. As a leading liquid staking provider with over $750 million in TVL, Stader's ETHx has gained significant traction within the community, attracting over 250 node operators and 4100+ validators since its launch. The SD Utility Pool enables SD holders to participate in the decentralization of Ethereum by delegating their tokens to node operators, who in return contribute to the security of the network.

Stader Labs Unveils Phase 2 of ETHx Tokenomics with Launch of SD Utility Pool

Singapore, April 3, 2024 - Stader Labs, a pioneering liquid staking solutions provider, has announced the launch of the SD Utility Pool, marking the second phase of its ETHx tokenomics strategy. This strategic initiative aims to enhance the integration of SD, the protocol token of Stader, into the Ethereum ecosystem, offering holders increased utility and participation in the growing ETHx business.

Background: Stader's ETHx Solution

Stader is a leading player in the liquid staking market, with over $750 million in total value locked (TVL) across prominent EVM chains, including Ethereum, Polygon, and BNB. In July 2023, Stader launched its ETHx solution on Ethereum, introducing the lowest bonding requirement of 4 ETH plus 0.4 ETH worth of SD per validator. This innovative approach significantly reduces the capital requirement by 85% and generates up to 42% higher rewards for node operators compared to traditional solo staking. ETHx has gained widespread acceptance within the community, with over 250 node operators onboarding and establishing more than 4100 validators since its inception.

Phase 2: SD Utility Pool

Stader has entered the next phase of its Ethereum decentralization journey by launching the SD Utility Pool, which brings SD holders into the ETHx ecosystem. The Utility Pool serves as the first-of-its-kind product in the Ethereum liquid staking space, rewarding protocol token holders for supporting the decentralization of Ethereum by contributing to permissionless node operators.

Holders can delegate any amount of SD to the Pool, which node operators can then access to cover the required protocol tokens for validators. Node operators are obligated to pay a utilization fee that contributes to the 40%+ rewards that early delegators can potentially earn.

Driving Value Accrual for SD Holders

Since the launch of ETHx in June, Stader has experienced a substantial 6X growth. The SD Utility Pool is poised to be a pivotal catalyst for the next wave of value accumulation for SD holders. As more SD is locked in by ETHx node operators, its value will correspondingly increase. This growth will enable higher incentives for ETHx users, fostering greater demand for ETHx. The increased demand will drive up ETHx TVL, leading to higher demand for SD in the Utility Pool. This positive feedback loop will ultimately benefit SD holders.

Early Adoption and Incentive Program

The SD Utility Pool has garnered a positive response, with over 1.5 million SD delegated within just two weeks of launch. According to Stader's team, approximately 10% of the circulating supply has been locked, including both SD delegated to the Utility Pool and SD previously bonded by node operators.

To incentivize early delegators, Stader Labs has announced additional emissions from the protocol treasury, offering rewards of over 40% for delegators.

A Breakthrough in Decentralization and Token Utility

Stader's Utility Pool represents a groundbreaking innovation in the Ethereum DeFi landscape. By promoting the decentralization of Ethereum while integrating genuine use cases into protocol tokens, it sets a new standard for token utility. This development underscores Stader Labs' unwavering commitment to driving innovation and advancing the DeFi ecosystem.

About Stader Labs

Stader is a non-custodial, smart contract-driven staking platform that simplifies the discovery and utilization of staking solutions. It serves as a critical staking middleware infrastructure for various Proof-of-Stake (PoS) networks, catering to retail cryptocurrency users, exchanges, and custodians. Stader is backed by leading crypto investors such as Panterra Capital, Coinbase Ventures, and others.