Stader Labs recently unveiled Phase 2 of its ETHx tokenomics with the launch of SD Utility Pool. SD Utility Pool is a strategic initiative by the liquid staking giant to tie in SD, its protocol token, more integrally with the ETH ecosystem. It shall provide a higher level of utility to the holders while also enabling them to be a part of the burgeoning ETHx business.?
Stader is a leading liquid staking solutions provider with $750 Mn+ in TVL and is present across major EVM chains including Ethereum, Polygon & BNB. In July of 2023, it launched on Ethereum with the lowest bonding requirement of just 4 ETH (& 0.4 ETH worth of SD) per validator. This reduced the capital requirement by 85% and offered 42% higher rewards for node operators as compared to solo staking. ETHx gained acceptance within the community with 250 node operators having added 4100+ validators since launch.
Stader has now entered the next phase of its ETH-decentralisation journey where it brings SD holders into the ETHx space with the launch of the SD Utility Pool.
SD Utility Pool is the first-of-its-kind product in the Ethereum LST space that rewards protocol token holders for contributing to the decentralization of Ethereum by supporting permissionless node operators. Holders can delegate any amount of SD they wish to the Pool while node operators can access it to cover the protocol token required for the validators. The operators are required to pay a utilization fee that shall contribute to the 40%+ rewards that early delegators stand to receive.