Stader’s Liquid Staking Derivative (LSD), NearX, was launched on 16-09-2022. In just 2.5 months, NearX has achieved 1.5Mn+ Near in TVL with NearX being the LSD with the deepest liquidity across Dex’s on NEAR and Aurora ($2.75Mn across Ref & Trisolaris).
Stader Near follow’s an extremely stringent validator selection process that helps us achieve best in class staking APY of 10.2%. You can read more about our validator evaluation and selection criteria here
NearX is integrated with all major DeFi protocols (Ref, Burrow, Pembrock, Trisolaris etc) and can further help users earn an additional 10-20% yield through DEFi. .
As a part of the launch bonanza, Stader was offering 0% commission to all users for staking Near with Stader.
Going forward, we propose that Stader keep 5% of staking rewards as fees, which will be held by the treasury, to support ongoing development, maintenance, and improvements. This will result in a 0.5% fee for users and will assist us in making the business model sustainable so that we can continue to create the best yield opportunity for NearX users.
Please give us your feedback and suggestions. We plan to put this up for a formal vote in 7 days.
I am therefore comfortable, both as a NearX user and as a Stader stakeholder via SD token, with a 5%. A good balance between profitability and competitiveness.
Thank you for your kind answer.
Just trying to calculate the numbers:
1.5m X 1.3$ = 1.95m$ X 10.2% = 198,900$ X 0.05 = >10k fees yearly (with today’s NEAR price)
is that right or is my math wrong?
Just to put things where they are, do we have a breakdown of marginal costs for the Near project (UI, maintenance, etc.) versus expected revenu from a 5% commission ?
I’m clearly in favor of slowly trying to reduce the burning cash, even if it should not be top priority in this market ; user acquisition should remain top one.
Hi @jackswiths, it is such a pleasure to see you here!
I know what you mean. Some comments on my side:
the marginal costs of operating in a chain are negligible once everything is set up. It is mostly the SD token emissions what constitutes anything close to a ‘cash-burn’. And we will be publishing monthly budget of SD emissions across all chains very soon, in this forum.
overall, the team wants to position Stader as a household name for liquid staking. For that, we do not look at price action. We have a strong treasury and runway to ‘distract’ us from that.
Granted, one could see FTM or NEAR price action and feel like it would be wise to close shop. But if, say in 6 or 12 months, Fantom Virtual Machine ushers in a era of massive scalability @ Fantom… or NEAR manages to gain substantial userbase and its scalability and dynamic sharding proves to succeed where others like Solana didnt… then all these efforts would have paid off.
In the end, as you say, priority should be user acquisition. And we are happy to see Stader growing by 2,000 new members per month across communities and 1,000 new stakers across our chains. Convinced we will see an even higher number once SD staking and EthX go live over the next two months.
This will change everything. The model of real yield is beating the competitors across all liquid staking platforms. Making a big bet on Stader’s model.
