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Introduction to Stader Labs & its BNB staking solution

Stader is a convenient & secure non-custodial multi-chain liquid staking solution. Its offering on BNB allows users to stake any amount of BNB with just a few clicks & mint a reward bearing liquid token called BNBx. BNBx offers instant liquidity, auto-compounding of rewards and DeFi opportunities to users for yield maximization.

What is Stader Labs?

Stader is a multi-chain liquid staking platform that enables 1-click staking with benefits like auto compounding, validator management, DeFi integrations, and more to help our users maximize passive income on their native crypto tokens through Staking.

Stader is currently live on 6 blockchains, BNB, Hedera, Fantom, Polygon, Near & Terra 2.0. It has served over 70,000 users and, at its peak, had a max TVL of approx $1Bn!

Stader's vision is to make staking mainstream and bring this wealth creation opportunity to 1 billion users globally.

Stader is supported by blue-chip investors like; Pantera Capital, Coinbase Ventures, True Ventures, Jump Capital, Ledgerprime, Accomplice, Accel, Amber, 4RC, and Figment.
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What led to the formation of your product?

When we learned about staking, we were super excited by the opportunity to earn rewards on our existing native crypto tokens. However as stakers, we soon realized that the process was quite complex. We wished for a more efficient solution and hence decided to create one ourselves!

We identified that discovering & monitoring validator performance, monitoring portfolio across validators & blockchains are all quite time-consuming and cumbersome activities.

We wanted to build a protocol that simplifies staking for all types of users. On top of simplifying staking, liquid staking amplifies the ability to enhance yield via DeFi opportunities. That was the genesis of Stader.
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What does the team at Stader Labs look like?

We are a strong team of 40+ developers, designers, marketers, data engineers & community builders. Our team is led by 3 co-founders having in-depth expertise in Web3 & scaling of world-class technology companies.Here is a quick summary of our Founders’ background

Amitej Gajjala is the Co-Founder and CEO of Stader Labs. He has 10+ years of experience in Business strategy and scaling start-ups across India, SEA and Europe.

Sid is our Co-Founder and CTO. He has a decade of technology and crypto experience. An alumnus of Columbia and IIT.

Dheeraj is our co-founder and protocol lead. He has 10+ years of experience in building and scaling technology applications in blue chip silicon valley companies including Linkedin and Paypal.
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Our leadership group includes several top-notch professionals from Ivy Leagues such as Harvard, Columbia, and Tier-1 companies like Mckinsey, BCG, Kearney, etc. to name a few.
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What is Stader building for the BNB chain?

Stader has built out our liquid staking solution on BNB. While simple staking provides users with passive income, it locks in their tokens limiting its utility. Liquid staking helps overcome this limitation.

With Stader’s liquid staking product, when users stake with Stader, they get liquid tokens (BNBx) corresponding to the staked amount of BNB. These tokens can be used to further amplify yields by participating in the Defi ecosystem while the locked tokens keep earning staking rewards.

So, now you get Staking rewards plus you can use the liquid token to explore additional DeFi yield farming opportunities, thus earning even more yields. Also, you can swap the liquid tokens instantaneously for Liquidity.
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How does BNBx accrue value?

The rewards generated from staking are added back to the pool, and the value of BNBx (in terms of BNB) increases. BNBX is a reward-bearing liquid token i.e. the value of 1 BNBx token vs. BNB increases over time as staking rewards accumulate.

Let us take this example to explain how the exchange rate is calculated.

Suppose the BNBx <> BNB exchange rate is initially kept at “1” at the start of the contract. And every time staking rewards are added to the pool, the BNBx<>BNB exchange rate will increase using this formula:

‍New BNBx<>BNB Exchange Rate = Current BNBx<>BNB Exchange Rate + (Rewards Added/Total BNBx in circulation)
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What DeFi opportunities can users avail with BNBx?

Typical current yield for staking BNB is 4% - 6%, Stader can enhance this by 15-25% through optimal validator selection and auto-compounding . But this is just the start, the real opportunity for yield optimization lies in participation in DeFi using our liquid token.

As of yet, Stader has partnered with some of the prominent DEXes and yield optimizers in the BNB chain ecosystem such as Apeswap, Ellipsis Finance and Beefy Finance.

On these DeFi protocols, users can earn attractive additional yields by adding liquidity to the BNBx:BNB pools/vaults.

Stader will keep on adding even more integrations across leading DEXs, money markets, yield optimizers, and other protocols to bring a wide range of DeFi opportunities to the users. Below are some of the examples.

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How is Stader’s Staking Solution Different?

Let us look at how Stader’s staking solution is different from 3 other categories of solution providers in the DeFi market.
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Let’s begin with Stader Liquid Staking vs Centralized Staking.

‍#1 Stader offers a decentralized solution, as it is a smart contract-based non-custodial platform where the users completely control their funds.

We have also undergone multiple audits by top security agencies like Halborn and Peckshield and follow best-in-class security practices such as continuous monitoring, multi-sig with completely independent parties, etc. Making your funds safe with us!

#2 Stader is transparent. We are an on-chain solution, so users can clearly see where their BNB is staked and can draw comfort that the funds are clearly visible in our contract through third-party explorers.

#3 Stader is permissionless. It means we give equal access to everyone. Hence, anyone can become a user whether you have 0.1 BNB or 1mn BNB; it doesn’t matter.
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Now, let’s compare Stader Liquid Staking with Plain Staking.

‍#1 Unlike plain staking, Stader offers Instant Liquidity. When you stake your BNB with Stader, you will get back our liquid token BNBx which represents staked BNB plus staking rewards.

This BNBx can be swapped to BNB on a DEX without waiting for the unstaking period. Amazing right?

#2 With Stader’s various DeFi opportunities, you can utilize your BNBx tokens & not only get instant liquidity but also avail the opportunity to participate in DeFi Opportunities. This way, you can amplify your yields based on your risk appetite.

#3 Another amazing solution by Stader is the “Auto-Compounding.” The rewards generated through staking will be restaked automatically. Yes, you heard it right!

This is in contrast to the traditional staking solutions of BNB where the user has to stake their rewards back into nodes manually. This feature of Stader will help investors gain more returns from their BNB funds.

#4 Another aspect is Auto-Rebalancing which makes Stader better than traditional plain staking. Here, Stader monitors and manages the validators for you, so as to get a balance between APR and diversification.

We also constantly monitor key health metrics for all validators, such as uptime, slashing history, fee, APR, etc, and then optimize the BNB allocation across various nodes so that you get the best risk /reward balance!!
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At last, Stader’s Liquid Staking has an edge over Other Liquid Staking solutions. How?

‍#1 We offer high grade security [Also, we are monitored, tested & audited by world-class security agencies such as Halborn & Peckshield]

#2. We offer attractive rewards for staking

#3 We have a wide range of DeFi integrations to make your staking smoother

Hence, all these factors make Stader stand out amongst the crowd and be your best staking solution provider!
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How does Stader Ensure Security?

Security and safety of user funds are paramount for us and we have followed a multi-layer approach to ensure our users get the most secure experience possible when they stake their BNB with us

Multiple third-party smart contract audits: Our code has been audited by two of the best-known firms in this space, Halborn and Peckshield

BNB Chain collaboration & testing: We have had a deep collaboration with the BNB chain team, who have given feedback on the architecture and also tested our code

Bug Bounty on Immunefi: Apart from our 2 independent audits, Stader also has a $1,000,000 Bug Bounty program on Immunefi.

Ongoing monitoring: We are engaging with various security firms that specialize in ongoing monitoring and threat detection, to ensure security on an ongoing basis