Stader launched its liquid staking solution on the BNB chain in early August 2022. Since then BNBx has made several strides, reaching a high watermark of 65k BNB staked at its peak and over 10+ DeFi integrations till date.
Stader has followed a stringent validator selection criteria, balancing decentralization and optimizing APYs for our stakers. BNBx consistently has staking yields 10%-25% higher than the average validator on the BNB chain. In addition, users can choose from a wide range of DeFi trading strategies with our partner protocols to get the maximum yield for their risk preference.
In addition Stader has followed best-in-class security protocols on BNBx with dual audit for the smart contract by Halborn and Peckshield. Additionally, we have a $1mn bug bounty on Immunefi, which has not unearthed any security flaws till now. BNBx also has multi-sig accounts controlling the contract admin, with 3 external signatories, ensuring that control over the contract changes does not reside with the Stader team. Real time on chain alerts using Forta help us monitor for any unusual activity on the BNBx platform.
As an additional feature, Stader had implemented a 24hr time lock for any changes to the BNBx contract, ensuring sufficient time for the community to react.
Till now there has been no fee levied on users staking with BNBx, however in order to secure the long term future of the platform we propose a daily platform fee of 0.001% of the BNB staked through the BNBx contract.
This fee will be cut from staking rewards collected from validators each day. The proceeds from the fee will be used to fund continued incentives on BNBx DeFi integrations, security enhancements and additional product development
We invite feedback and suggestions from the community on the proposal for the next 5 days (more, if needed).
0.001% of the BNB staked, daily => 0.365% of the BNB staked.
If the staking yield is 3.6% → the fee is 10% of staking rewards
if the staking yield is 5.4% → the fee is 6.7% of staking rewards
if the staking yield is 7.2% → the fee is 5% of staking rewards.
Since anything between 5% to 10% seems ideal to me, I agree with this proposal.
Why isn’t a % cut from the rewards generated introduced instead?
Why is it based on the BNB staked?
At the moment, BNB staking is at all time highs meaning they APYs are at all time lows. @Mariella If the staking yield goes down to 1.8% (which is already the case on a number of validators), Stader will get a 20% cut of the staking rewards which is a lot. And what if rewards are stopped for a number of days like when there was the BNB bridge hack? They continue taking a cut even though no rewards are being generated?
IMO, the cut should come from the rewards generated and not the BNB staked.
You are right there.
I had no idea that staking yield in BNB could go as low as 1.8% tho… that’d be crazy, I think they would find something to make it not happen.
As a Stader SD stakeholder that will be getting that Stader revenue via upcoming SD staking, I welcome the fact that Stader’s revenue (and therefore my staking yield) will be more predictable. I guess this is why Stader does it that way.
Nevertheless, if say we hit a staking reward of 1.8% in BNB and the Stader cut becomes too high, the DAO should initiate another voting.
Please note that Stader fees are below average, e.g Lido takes 10% of the staking rewards as fees, Stader takes ~5% normally. So I wouldnt mind they do it this way in BNB and we experiment how it goes.
It’s not crazy. Staking yield depends on the gas fees as I’m sure you know and the more people stake the less yield for everyone. The way the trend is going (more and more BNB staked and less transactions) the 1.8% yield is already happening on a number of validators so it’s only a matter of time. And a 20% cut is too much.
You’re right Lido is at 10% but every liquid staking provider takes a cut from the rewards and not from the token staked.
Current staking yield (30 day avg) on BNBx is about 3.2% and the yield delivered through the BNBx validator selection criteria is 15%-25% higher than the APY on an average validator on the BNB chain.
The reason why the % was applied on TVL for BNB is because the APY on BNB staking is very variable whereas the costs (incentives on LPs, marketing and product development ) tend to remain stable. Also the fee is calculated on TVL but taken from the rewards , so in case there are no rewards (like during the BNB bridge hack) there will be no fee levied.
Having said this we would not want to take a huge portion of rewards as fees , in case the APY goes to even lower levels.
How about a cap, something along the lines of 0.001% of TVL or 10% of rewards whichever is lower?
