Stader (SD) token is the native governance and value accrual token for Stader. Stader has established key mechanics that make SD tokens intrinsically tied to the Stader platform.
Value Capture for SD Token:
Stader charges a % of rewards as fees and the fees is the key revenue source for Stader platform. The fees charged will be in the range 3%-10% of the rewards based on type of solution (if elected by governance). A portion of the protocol fees will be paid to SD token stakers.
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.
Value Capture for SD Token:
Stader charges a % of rewards as fees and the fees is the key revenue source for Stader platform. The fees charged will be in the range 3%-10% of the rewards based on type of solution (if elected by governance). A portion of the protocol fees will be paid to SD token stakers.
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.