🌊Liquid Staking
Taking the baton from Lido's sunsetted liquid staked DOT, StellaSwap decided to relaunch stDOT to restore its former glory in fostering ecosystem growth.
What is stDOT?
stDOT is a liquid token that represents your share of the total DOT.xc pool deposited with StellaSwap. Any user that stakes DOT.xc will immediately receive newly minted stDOT. Over time, as your DOT delegation accrues rewards, the value of your stDOT increases. When a user delegates their DOT tokens on StellaSwap for stDOT, they do not need to perform or wait for the completion of any delegation or activation steps, as is the norm in traditional staking. The user can instantly exchange stDOT for DOT at any time in the open market.
Traditional Staking vs Liquid Staking
In traditional Proof-of-Stake (POS) staking within Polkadot, a user has to perform several steps manually:
Create a Stash Account and bond DOT to it;
Nominate validators;
Monitor validator's yield to maximize profit.
Staking on Polkadot requires expert knowledge and a great deal of resources, as well as incurring a core risk of slashing that can get very severe if the staking is managed improperly.
Benefits of stDOT
Staking DOT via StellaSwap radically simplifies the staking process and absolves the need for users to maintain their own staking infrastructure. Users can;
⭐ Start earning staking rewards easily in 1-click without locking in your assets ⭐ Instantly liquidate your stDOT w/o waiting for unbonding period ⭐ Supercharge their DeFi by using stDOT across numerous usecases like stacking farm rewards, lending/borrowing etc. ⭐ Use their Metamask or any ERC wallets as we're fully EVM compatible!
APR Maximization
One of the core benefits of StellaSwap's stDOT is that our validation nomination strategy is optimized to keep a higher chance of getting into the active set w/o decreasing APRs. Here are the following metrrics that we constantly track to ensure we select the best validators in the ecosystem;
Era points
APR
Stake amount
Nominators list
Slashing
Payout rate
Rebasing or Yield-Bearing?
Unlike Lido's stDOT, Stella's stDOT is not a rebasing token. Rebasing tokens change in balance as the token supply changes according to staking rewards or slashing penalties. stDOT is a yield-bearing token. Yield-bearing tokens reflect accrued yields through changes in token values rather than balances. This method of reward issuance breaks the 1:1 swap-rate between LSD assets and their underlying assets, allowing the rate to change in real-time as the income increases.
A benefit of being a yield-bearing token is the ease of integration across other DeFi protocols. This streamlines composability of stDOT across DeFi to unlock greater usecases much more easily compared to rebasing tokens.
Stake Your DOT Now!
You can access our stDOT here: https://app.stellaswap.com/stdot
FAQs
How does stDOT work?
A DOT.xc token holder connects their wallet and deposits their tokens into StellaSwap's stDOT. They immediately receive stDOT tokens that represent a share of the total pool, and StellaSwap delegates DOT to our selected validators on the Polkadot network. When these delegations accrue rewards on the allotted stake, the total DOT under management grows and this increases the value of stDOT tokens.
How the staking exchange rate is calculated?
The amount of stDOT that you will receive is calculated based on the ownership share. The reason you get slightly less stDOT than DOT.xc is due to rounding when dividing:
Where:
amount_of_DOT.xcis a given DOT.xc you want to exchangegetTotalShares()is a call to Lido contractgetTotalPooledKSMis a call to StellaSwap's contract. This method works with KSM as well as with DOT.
Why should I prefer liquid staking over traditional?
In traditional Polkadot staking a user has to perform several steps manually:
Create a Stash Account and bond DOT to it;
Nominate validators;
Monitor validator's yield to maximize profit.
Staking on Polkadot requires expert knowledge, the main being the fact that slashing can get very severe if the staking is managed improperly.
Staking DOT through StellaSwap will come with a variety of benefits:
One-step process — just deposit into the pool with a single click.
The pool takes care of validator diversification.
Immediate appreciation — you start earning from the pool from the moment of deposit.
How can I redeem stDOT for DOT?
Withdrawals of DOT.xc from StellaSwap can be done through the Unstake tab. However, unstaking directly from StellaSwap will incur the Polkadot unbonding period, which is roughly 28 days. Immediate withdrawal options are available in the open market through liquidity pools on StellaSwap's Pulsar V3 where one will be able to immediately exchange stDOT for DOT.xc. If you wish to instantly receive DOT.xc, we recommend trading stDOT directly on StellaSwap.
DOT.xc can be instantly exchanged for DOT through the Transfer tab.
What are the risks involved?
Downtime risk: Polkadot validators can go offline, in which case they do not earn staking rewards. To minimize this risk, StellaSwap stakes across multiple professional and reputable node operators with heterogeneous setups. This will also serve to mitigate potential slashing risks.
stDOT Price Risk: As mentioned above, withdrawals from StellaSwap take some time to deactivate. Liquidity pools in the open market will be available for instantly redeeming stDOT for DOT. On such pools, users risk an exchange price of stDOT, which is lower than the inherent value due to withdrawal restrictions on StellaSwap, making arbitrage and risk-free market-making impossible. We driven to mitigate the above risks and eliminate them to the extent possible. Despite this, they may still exist, and hence it is our duty to communicate them.
Say Hello 🖐️ to GLMR's native LSD!
What is stGLMR?
stGLMR by StellaSwap is a liquid staking protocol that issues a derivative token, stGLMR, for GLMR (Moonbeam's native token). The protocol enables users to stake GLMR while retaining liquidity, with stGLMR representing their staked position and accruing staking rewards over time.
The stGLMR protocol employs an interest-bearing token model, akin to Yearn vaults. Users deposit GLMR and receive stGLMR tokens, whose balance grows as staking rewards are accumulated. The protocol maintains multiple ledgers to delegate stakes to various collator candidates on Moonbeam, optimizing rewards while managing risk.
Traditional Staking vs Liquid Staking
In traditional Proof-of-Stake (POS) staking on Moonbeam, a user has to perform several steps manually:
Create a Stash Account and bond GLMR to it;
Nominate validators;
Monitor validator's yield to maximize profit.
Staking on Moonbeam requires expert knowledge and a great deal of resources, as well as incurring a core risk of slashing that can get very severe if the staking is managed improperly.
Benefits of stGLMR
Staking GLMR via StellaSwap radically simplifies the staking process and absolves the need for users to maintain their own staking infrastructure. Users can;
⭐ Start earning staking rewards easily in 1-click without locking in your assets ⭐ Instantly liquidate your stGLMR w/o waiting for unbonding period (hence "Liquid") ⭐ Supercharge their DeFi by using stGLMR across numerous usecases like stacking farm rewards, lending/borrowing etc. ⭐ Use their Metamask or any ERC wallets as we're fully EVM compatible!
APR Maximization
One of the core benefits of StellaSwap's stGLMR is that our validation nomination strategy is optimized to keep a higher chance of getting into the active set w/o decreasing APRs. Here are the following metrrics that we constantly track to ensure we select the best validators in the ecosystem;
Era points
APR
Stake amount
Nominators list
Slashing
Payout rate
Rebasing or Yield-Bearing?
StellaSwap's stGLMR is not a rebasing token. Rebasing tokens change in balance as the token supply changes according to staking rewards or slashing penalties. stGLMR is a yield-bearing token. Yield-bearing tokens reflect accrued yields through changes in token values rather than balances. This method of reward issuance breaks the 1:1 swap-rate between LSD assets and their underlying assets, allowing the rate to change in real-time as the income increases.
A benefit of being a yield-bearing token is the ease of integration across other DeFi protocols. This streamlines composability of stGLMR across DeFi to unlock greater usecases much more easily compared to rebasing tokens.
FAQs
How does stGLMR work?
A GLMR token holder connects their wallet and deposits their tokens into StellaSwap's stGLMR page. They immediately receive stGLMR tokens that represent a share of the total pool, and StellaSwap delegates GLMR to our selected validators on the Moonbeam network. When these delegations accrue rewards on the allotted stake, the total GLMR under management grows and this increases the value of stGLMR tokens.
How the staking exchange rate is calculated?
The amount of stGLMR that you will receive is calculated based on the ownership share. The reason you get slightly less stGLMR than GLMRis due to rounding when dividing:
Where:
amount_of_GLMRis a given GLMR you want to exchangegetTotalShares()is a call to our contractgetTotalPooledGLMRis a call to StellaSwap's contract.
Why should I prefer liquid staking over traditional?
In traditional Polkadot staking a user has to perform several steps manually:
Create a Stash Account and bond GLMR to it;
Nominate validators;
Monitor validator's yield to maximize profit.
Staking on Moonbeam requires expert knowledge, the main being the fact that slashing can get very severe if the staking is managed improperly.
Staking GLMR through StellaSwap will come with a variety of benefits:
One-step process — just deposit into the pool with a single click.
The pool takes care of validator diversification.
Immediate appreciation — you start earning from the pool from the moment of deposit.
How can I redeem stGLMR for GLMR?
Withdrawals of DOT.xc from StellaSwap can be done through the Unstake tab. However, unstaking directly from StellaSwap will incur the Polkadot unbonding period, which is roughly 28 days. Immediate withdrawal options are available in the open market through liquidity pools on StellaSwap's Pulsar V3 where one will be able to immediately exchange stDOT for DOT.xc. If you wish to instantly receive DOT.xc, we recommend trading stDOT directly on StellaSwap.
DOT.xc can be instantly exchanged for DOT through the Transfer tab.
What are the risks involved?
Downtime risk: Polkadot validators can go offline, in which case they do not earn staking rewards. To minimize this risk, StellaSwap stakes across multiple professional and reputable node operators with heterogeneous setups. This will also serve to mitigate potential slashing risks.
stGLMR Price Risk: As mentioned above, withdrawals from StellaSwap take some time to deactivate. Liquidity pools in the open market will be available for instantly redeeming stGLMR for GLMR. On such pools, users risk an exchange price of stGLMR, which is lower than the inherent value due to withdrawal restrictions on StellaSwap, making arbitrage and risk-free market-making impossible. We driven to mitigate the above risks and eliminate them to the extent possible. Despite this, they may still exist, and hence it is our duty to communicate them.
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