Stader’s Liquid Staking Solution for NEAR
$NEAR holders can seamlessly earn staking rewards on their tokens without the need for understanding validator performance or locked tokens.
Stader’s NearX is a liquid token that you can mint when you stake your $NEAR with us. As staking rewards accrue, NearX will grow in value as compared to NEAR. Let us take a deeper look at the NearX rewards structure.
Diving Deep into the Rewards Structure
Let’s take a look at a few key terms before we get into how NearX works and what the reward structure entails.
· Stake Pool TVL (Total Value Locked): Stake Pool TVL (or just TVL) is the amount of NEAR in the Stader staking smart contract. This includes all the NEAR staked with Stader, plus the cumulative rewards to date.
· APY: It is the annualized rate of rewards added to the Stake Pool TVL per epoch.
Note — APY is dynamic and does not guarantee a fixed rate of return for the full year, it depends on the returns offered by various validators on the network.
How does NearX work?
When users stake NEAR, they will mint NearX at the prevailing exchange rate.
Stader then takes the NEAR deposited by users and stakes them optimally across various validators on the network. As these validators process transactions, they generate rewards that are compounded — increasing the value of the NearX in circulation
Thus, NearX is a reward-bearing liquid token i.e. the value of NearX token vs. NEAR increases over time as staking rewards accumulate.
How is the NearX <> NEAR Exchange Rate Determined?
The NearX: NEAR exchange rate will be initialized as 1 at the start of the contract.
Every time staking rewards are added to the pool, the NearX<>NEAR exchange rate will increase using this formula:
New NearX<>NEAR Exchange Rate = Current NearX<>NEAR Exchange Rate + (Rewards Added/Total NearX in circulation)
What fees can one expect to incur when staking NEAR with Stader?
There are various types of fees that will be incurred for NEAR staking operation, below is an indicative list of the same.
· Transaction Fee: A transaction fee is charged by the NEAR network for various transactions done with the Stader smart contract. Stader has no control over this fee rate nor does it receive any part of this fee.
· Rewards Fee: You never pay commission on staked NEAR but only on earned staking rewards (Stader makes revenue only when you gain!).
So what are you waiting for?
Start earning those juicy yields by staking NEAR with us and deploy your NearX on DeFi protocols to earn more yields on top of the staking rewards.
Note — The calculations above are conceptual only and may differ slightly in practice.