Stader Labs recently launched its unique and revolutionary SD Utility Pool. Indeed, it is a crucial part of phase 2 of its ETHx tokenomics and provides an unprecedented experience for decentralized ETH entrepreneurs.
More specifically, the SD Utility Pool is a brand new initiative from the liquid staking giant aimed at increasing the integration of SD, its protocol token, into the Ethereum ecosystem. This should present increased utility for holders and provide access to the growing ETHx sector.
Stader Labs is one of the industry’s leading providers of liquid staking solutions. They maintain a total value locked (TVL) of over $600 million and have a footprint on some of the largest EVM chains, such as Ethereum, Polygon, and BNB.
SD Utility Pool Launch Boosts ETH Decentralization
In July last year, Stader debuted on Ethereum with the lowest collateral requirement per validator. Specifically, he only needed 4 ETH and 0.4 ETH from SD, which significantly reduced the required capital by a remarkable 85%.
Additionally, it gave 42% higher rewards to node operators compared to solo staking. Since its launch, ETHx has gained community acceptance through 250 node operators, with over 4,100 validators.
Stader Labs is now entering its second phase; launching its first of its kind SD utility pool. The aforementioned offering is unprecedented in the Ethereum LST sector. Additionally, it aims to reward token holders who pursue the decentralization of Ethereum through the support of permissionless node operators.
Holders can delegate a specified amount of SD to the pool. Alternatively, node operation can access it to cover the protocol token required for validators. These validators will then have to pay usage fees. Subsequently, this will contribute to over 35% of the rewards received by delegators.
Stader has grown sixfold since last year, maintaining its impressive upward momentum. As more SD cards become locked, their overall value will only increase. Therefore, this growing value will only drive more interest in ETHx. Ultimately, this growing demand for ETHx TVL will then increase demand for SD. Overall, this benefits SD holders.
The SD Utility Pool has been greatly received with over 2.3 million SDs already delegated. This, combined with the SD that was previously tied by node operations, amounted to 10% of the circulating supply already locked.
About Stader Labs
This advancement from Stader Labs is poised to have an undeniably positive effect on Ethereum decentralization. Its continued development is a key aspect of Stader Labs’ work in innovating and improving decentralized finance as a whole.
As a staking platform, Stader Labs is non-custodial and focused on smart contracts. Additionally, it facilitates the discovery and usefulness of various staking solutions through its development. Additionally, it is an essential aspect of a plethora of proof-of-stake (PoS) networks that contribute to the well-being of users, exchanges, and custodians of digital assets. Conversely, their work has been noticed by leading digital asset investment firms such as Panterra Capital, Coinbase Ventures and many others.
reference: watcher.guru