Coming right up HBARX V2 !!!

Hello, #HBARbarians,

Coming right up HBARX V2 !!!

Hello, #HBARbarians,

We would like to thank you for all the support you have provided to our product and the team. Even in these turbulent market conditions, we continue to grow the TVL and head toward 600mn HBAR locked in the contract. As envisioned in our roadmap, we will now be launching the v2 version of our staking application.

Here is a summary of the new features:

Users will now have the option of unstaking their HBARX through our dApp. Users wishing to unstake will deposit HBARX to the Stader platform and an amount of HBAR equal to the number of HBARX deposited multiplied by the exchange rate at the time of unstaking, will be moved from the staking contract to our Undelegation contract. This will then trigger the withdrawal function, which is explained below. Please note that transaction fees from the Hedera network will apply for triggering unstaking, Stader does not levy any fee for unstaking.

Once the user unstakes, HBARs allocated to their share are moved to the undelegation contract, users can then withdraw their HBAR after a cooling-off period called the Unbonding Time. Please note that no rewards will be accrued in the Unbonding Time and the effective exchange rate users will receive for unstaking is fixed at the time of unstaking, The unbonding time will initially be set as 7 days and will be changed to conform to the one set by protocol staking, when it goes live. We talk more about the unbonding time later in this blog. When the unbonding time is over users will be able to withdraw their HBAR to their wallets via the dApp withdrawal section.

Blade wallet (Beta) support
We are adding support for our second wallet, users will now be able to connect their Blade Wallet to the Stader dApp. You can find out more about Blade here and download their wallet through this link. Blade integration has been through beta testing to minimize potential issues. The Blade wallet is also audited by Certik, making it the first audited wallet fully integrated with the Stader dApp for HBAR staking. As always we urge users to do their own due diligence on security and charges while using third-party products.

BANXA onramp
Users will now have the option to buy HBAR through a link on the dApp provided by BANXA. The link is only provided for user convenience and Stader has not done any integration with BANXA. As always we urge users to do their own due diligence on security and charges while using third-party products.

More about Unbonding Time
Unbonding time is the interval after unstaking, post which the user is able to withdraw funds to their wallet. Let us reiterate the aim of staking which is to create a mechanism for long-term token holders to participate in the consensus mechanism and earn a reward. The unbonding time serves the following purposes in any PoS network:

  • It helps keep a clean stake distribution for the consensus mechanism in each epoch. As transactions are allocated to nodes, based on the staked amount, it is important to ensure their relative weights stay constant while one set of transactions are being processed (one Epoch). Thus, users might stake and unstake anytime but the network needs to have one set of staking weights in one epoch. Now, this is currently not the case for Hedera but will be soon, so it is important to build this feature and prepare the community for it. Also, thus our promise to conform this time to protocol staking when it goes live.
  • It deters short-term trading around the rewards cycle. One of the major ways of gaming a staking program is to stake just before rewards are added and unstake just after. Thus gaining rewards without long-term holding. Unbonding time makes this strategy unprofitable and keeps staking rewards for long-term holders.
  • It promotes DeFi — one of the additional objectives of HBARX is to kick off the DeFi ecosystem on Hedera and for all the upcoming DEXs there will be HBARX:HBAR pools for users to get instant liquidity into and out of HBAR positions. Hence, users can choose between exchanging HBARX for HBAR on a DEX or unstaking HBARX and waiting for the unbonding time. (Please note that fees associated with DEXs will apply and Stader has no control over such fees).

An additional point we would like to clarify is regarding what happens to the funds during unbonding time. During unbonding time, the user’s HBAR is on-chain in our unstaking smart contract. Moreover, these funds never leave the Hedera network and cannot be used by Stader for any purposes. For the avoidance of doubt, Stader does not earn any yield from user funds.

Security for v2
As always we have followed the best practices on security and the v2 contracts have gone through a fresh third-party audit. Additionally, our v2 code has been reviewed by The HBAR Foundation team. Goes without saying that we will continue to make sure that all products meet the highest security standards on an ongoing basis.

Move to v2
The move from v1 to v2 will be seamless for users with no steps required. However, our Hedera dApp will be unavailable for a few hours. We will announce the date of the transition in the next couple of days.