Stader Labs and the birth of LunaX
Proof of Stake (PoS) has been rapidly increasing within the decentralised financial world but it breads many challenges moving forward. For instance with Proof of Work (PoW) validators get paid for the transactions they approve which creates a fairer and more well structured process for people to participate.
Where as in PoS validators have to either purchase a significant amount of the native token or rely on delegations from other users to increase their rankings. This presents further barriers for validators to being noticed and delegators finding good validators to delegate to.
The wrong delegation can lead to what is known as slashing events if a validator behaves poorly or misses too many transactions which can impact the operation of the overall blockchain. A slashing even can cause delegators to lose out on part or all of their delegation.
Despite the risks associated with PoS it is also a more fairer and rewarding structure compared to PoW as it provides a lot more people with the ability to earn income by delegating and receiving payments for supporting networks in their operation.
However, a solution to the above mentions issues and more are still a significant barrier that holds back PoS from being the superior form of decentralised finance.
Introducing Stader Labs
A protocol that has launched to address a number of the issues such as locating validators, being aware of blockchains and earning potential is Stader Labs. Which aims to bring the best of the global PoS network to the one place and act as a form of middleman.
According to Stader labs lite paper the entire staking economy is currently valued at over $US240 Billion which has significantly expanding in a short period of time. As of October 2021 PoS was only valued at $US21 Billion and peaked at $US325 Billion.
Growth of the network is good placed to continue to outpace current trends as the broader cryptosphere continues to grow. However, the faster and larger it grows the harder it is for investors to maintain an eye on market trends and best value for money.
Stader Labs also anticipates that the market will proliferate even more over the next 5 years with expansion in gaming, art and emerging industries all reliant on PoS networks to power validation and participation in blockchain networks which will also expand beyond just Layer 1 tokens. A large portion of what will be driving this economic growth will be the shift to the Metaverse which will require massive amounts of computing power and resources.
Stader Labs is also undertaking market research and have noticed a number of core areas experiencing growth with a growing number of venture capitalist firms and hedge funds now seeking crypto investment opportunities to seek high yields and returns.
Stader sees the next billion that enters the Cryptosphere will be doing so on platforms they are familiar with and are able to easily use and access. Something that has been a significant barrier experienced by many would be investors.
The need to have more than just basic computer literacy skills with early developments requiring installs, navigations and setups that went beyond the majority of peoples IT skills and locked many out.
Stader Labs: All blockchains one location
Stader Labs have been developing a decentralised central exchange for all PoS networks that will enable investors from all walks of life to access everything PoS related and even are providing a number of strategies for people to choose depending on that they would like out of delegating their tokens.
The first chain Stader has developed for is Terra (Luna) Network that went live not too long ago and already has over $US730 Million in staked Luna which once staked on the platform becomes LunaX.
Stader is also offering the opportunity to access Hedera blockchain and in the coming months will open Fantom, Soluna, Ethereum and a number of other projects with plans to expand to all current and emerging PoS networks available.
With the current projected market cap expected to grow based on new investors Stader Labs is on the right path to developing a one stop shop for all investment opportunities within the PoS sector.
Are delegators eligible for airdrops?
The benefit of utilising Stader Labs is that they honour airdrops which have been an issue that has plagued centralised exchanges in the past.
A core complaint from retail investors who were building their crypto holdings on centralised exchanges was that they were not having their airdrops honoured or rewards and solely were relying on price increases. This meant many retailer investors could have been potentially missing out on tens of thousands of dollars in revenue from their investments.
Staking tokens on Stader Labs ensures that investors not only get a slice of the PoS APY but also any and all allocated airdrops to each account. As the staking is done on a smart contract it is a lot easier for Stader Labs to asses who is entitled to what and ensure investors are receiving their fair share.
A core component and focus of Stader Labs is to ensure investors are making the most of their investment by ensuring that they are delegating to the right validators to provide the best possible returns.
They will do this by providing monitoring every validators performance relaying that information to investors and providing the opportunity to select the best strategy for optimal performance taking the hard work out of delegating.
Modular Development
Stader Labs is constructed with a modular structure which always retains the initial capital deposited and any additional rewards and airdrops are done so through a separate contract so you are able to withdraw rewards, compound or sell your returns without touching your initial capital.
The current Stader smart contracts are:
- Delegator Contract - Delegators’ funds will be deposited and can be withdrawn from
this contract. - Validator Contract - Stakes the delegator funds. Claims rewards and airdrops.
- Pools Contract - Overseer of validator contract. Manages stake across each validator
pool and supports multiple pools. - Strategies Contract - Leverages staking rewards and synthetic assets to interact/
integrate with other DeFi/ Gaming protocols to amplify yields
The benefit this has is that it enabled 3rd parties to build on Stader Labs to provide additional services and the opportunity for blockchain innovation leading to new and exciting dApss, protocols and projects that continue to shape the future of financial services in the decentralised world.
Stader Token
Stader Labs have also developed their own native token that will power its protocol but designed on sustainability with only 150 million minted. The token which will go to incentivise people to be involved with the governance and reward validators they will also be utilised to incentivise developers to build on Stader Labs and create 3rd party protocols.
A bright future for Stader
The development and launch of Stader indicates a significant technological advancement that seeks to onboard the next billion crypto users. The teams strong knowledge of current barriers and their work ethic to resolve the current problems and enlist new investors is a testimate to their knowledge, experience and want to lead current market change.
Stader is definitely a protocol to monitor closely and if you would like to know more or where I got this information you can find it on their Litepaper. Alternatively you can stay upto date with their latest blogs on Medium as well as connect with the project developers on their official Discord follow them on Twitter and message the team on Telegram.
Image sources provided supplemented by Canva Pro Subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services