Stader Labs has recently launched its unique and groundbreaking SD Utility Pool. Indeed, it is a crucial part of Phase 2 of its ETHx tokenomics and provides an unprecedented experience for ETH decentralized contractors.
Specifically, the SD Utility Pool is a brand new initiative from the juggernaut of liquid staking to increase the integration of SD, its protocol token- into the Ethereum ecosystem. This should present an increased utility for holders, and provide access to the expanding ETHx sector.
Stader Labs is one of the industry’s foremost liquid staking solutions providers. They maintain more than $600 million in total value locked (TVL) and have a footprint across some of the most prominent EVM chains, such as Ethereum, Polygon, and BNB.
SD Utility Pool Launch Boosts ETH Decentralization
In July last year, Stader debuted on Ethereum with the lowest bonding requirement per validator. Specifically, it needed just 4 ETH, and 0.4 ETH worth of SD, which greatly reduced required capital by a remarkable 85%.
Additionally, it granted 42% higher rewards for node operators when compared to solo staking. Since its launch, ETHx received acceptance from the community through 250 node operators, with more than 4,100 validators.
Now Stader Labs is entering its second phase; the launch of its first-of-its-kind SD Utility Pool. The aforementioned offering is unprecedented within the Ethereum LST sector. Moreover, it operates to reward token holders who continue Ethereum’s decentralization through the support of permissionless node operators.
Holders can delegate a specified amount of SD to the pool. Alternatively, node operate can access this to cover the protocol token that is required for validators. These validators will then need to remunerate a utilization fee. Subsequently, that will contribute to more than 35% of the rewards that are received by delegators.
Stader has surged sixfold since last year, maintaining its impressive upward momentum. As an increasing number of SD is locked, it will only grow in overall value. Therefore, that growing value will only bring forth more interest in ETHx. Ultimately, this growing demand for ETHx TVL will then increase demand for SD. Altogether, this works for the benefit of SD holders.
The SD Utility Pool has been greatly received with over 2.3 million SD already delegated. This along with SD that was previously bonded by node operations has equated to 10% of the circulating supply being locked already.
About Stader Labs
This breakthrough from Stader Labs is poised to have an undeniably positive effect on Ethereum’s decentralization. Its continued development is a key aspect of Stader Labs’ work in innovation and enhancement of decentralized finance as a whole.
As a staking platform, Stader Labs is non-custodial and smart-contract-driven. Additionally, it facilitates the discovery and utility of various staking solutions through its development. Furthermore, it is an essential aspect of a plethora of proof-of-stake (PoS) networks that work for the betterment of digital asset users, exchanges, and custodians. Conversely, their work has been noted by leading digital asset investment firms such as Panterra Capital, Coinbase Ventures, and many more.