🌊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
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