SD Token Staking Guide
Most of you have been looking forward to the SD token launch date. We are excited to launch SD token on March 15th, 2022 at 14:00 PM UTC…
Most of you have been looking forward to the SD token launch date. We are excited to launch SD token on March 15th, 2022 at 14:00 PM UTC. As the token launches, we are also introducing staking of SD tokens on Terra. Please read on for more information.
- About SD token
- SD Staking
- SD Liquidity Pools
- SD Token Utility
About SD Tokens
Stader (SD) token is the native governance token for Stader protocol. SD token is a native ERC-20 token. All CEXs will list SD as an ERC-20 token. CEX trading will begin at 13:00 PM UTC.
Anyone can bridge it to Terra via Wormhole. The SD token on Terra is whSD.
SD token will be critical for successful functioning of the Stader platform i.e. for key governance decisions, validator selection and exit criteria etc. A portion of the protocol revenue will be distributed to SD token stakers.
SD Token Staking
SD token staking will go live on Terra (whSD) a few hours post launch. One will receive xSD after staking whSD token. xSD is an auto-compounding token similar to LunaX. whSD will have a 21 days unstaking period.
SD token staking contracts on ETH are being developed and will be launched soon.
Phase 1: What will be live at launch?
SD staking on Terra, xSD will be issued and will be auto-compounding. Expect initial APYs to be very high and to stabilize around double digits.
Once SD staking on Ethereum goes live, we will review and finalize the rewards for the same.
Phase 2: In a few weeks, the following will go live:
- Staking of ERC-20 SD
- Staking by validators in the pools to receive preferential delegations and staking by validators on Stake+
Phase 3: Anyone can stake on-behalf of validators to support their preferred validators
SD Liquidity Pools
On Terra, whSD <> xSD, whSD <> UST liquidity pools will be live on Terraswap around 15:00 PM UTC March 15th (around the same time as CEX trading). Anyone can provide liquidity to these pools.
On ETH, SD <> USDC pool will be live on Uniswap around 15:00 PM UTC March 15th.
Please note that there may be potential IL loss due to price fluctuations.
SD Token Utility
SD tokens will have 4 major utilities.
- Governance: When users stake SD tokens, they will receive xSD which is an auto-compounding token. xSD will have governance rights.
- Preferential Delegations & Slashing Insurance: Validators stake xSD tokens to receive preferential delegations and provide slashing insurance. In v2, any xSD holder can stake to support a validator that he/she prefers by staking on his/her behalf.
- Liquidity Pools: Liquidity providers for SD, xSD pairs with stables/native tokens will receive SD token rewards and pool fees.
- Stader Infrastructure: Third-party protocols will stake xSD tokens to leverage Stader contracts/infrastructure.
For full details on SD token distribution and vesting, please refer here.