ETHx Upgrade: Q1 - 2024
Since its launch in July 2023, ETHx aims to decentralize node operations on Ethereum by building a solution that is accessible, easy to use and rewarding. Stader remains committed to this vision and is dedicated to continual enhancement across each of these aspects to deliver seamless experience for its Node Operators and Stakers alike. In adherence to this commitment to elevate the ETHx experience, we are submitting a proposal for a smart contract upgrade, encompassing three important enhancements.
A. SD Utility Pool
While building our family of 200+ ETHx Node Operators, we realized that many node operator shops struggle to hold a big governance token position given their treasury management guardrails. To make ETHx more accessible for aspiring node operators, we are hence introducing the SD Utility Pool that completely eliminates governance token exposure for node operators. Node operators can now borrow SD from the utility pool at a nominal net fee. This model further unlocks a big opportunity for SD holders and potential buyers who can now earn double digit rewards by delegating their SD to the utility pool.
For a comprehensive understanding of the SD Utility Pool’s functionality and intricate details, kindly refer to our forum post from last year:
B. SD Reward Auto-Deposit
As a part of our commitment to simply ETHx node operations for validators, we are further introducing the SD reward auto-deposit. Currently, ETHx Node operators receive SD rewards approximately every 28 days. They then have to follow a time and gas cost intensive 3 step process to add these rewards back as collateral deposits to earn more rewards. Here is what the current process looks like:
- The operator must first claim the rewards in their reward address.
- Transfer the rewards from the reward address to the operator address.
- Execute the deposit command to transfer the tokens from the wallet address to the SD collateral contract.
The “SD Reward Auto-Deposit” feature will enable Node Operators to deposit rewards directly into the SD collateral contract without the need for manual claiming and multiple transactions. This enhancement is aimed at reducing the complexity and gas fees associated with the existing procedure.
C. Streamlining Oracle Operations
As part of our ongoing efforts to streamline our oracle operations in alignment with EIP 4788, and to improve efficiency while simplifying execution, Stader is proposing a five member Oracle Committee. Stader will decommission one of its 2 internal oracle nodes in addition to Kiln’s oracle to support the new structure. This proposed change aims to maintain the operational effectiveness of our systems, while ensuring that the security and reliability of the ETHx network remains uncompromised.
We invite the community to discuss this proposal here for the next three days. After this period, the proposal will be submitted for an on-chain vote through Snapshot.