How Stader Labs is Developing Staking on Hedera

April 21, 2022

Stader Labs is a non-custodial innovative contract-based staking platform that helps you conveniently discover and access staking solutions. PoS networks use validators who create, propose, or vote on blocks added to the blockchain.

The staking economy has exploded, with over $240 billion (USD) currently staked in the market. In the last year alone, the PoS market cap has grown from $21 billion (USD) to $325 billion (USD) in October 2021*, which has resulted in the PoS market cap increasing significantly as a percentage of the total crypto market cap. According to a Bitcoin News article, “the liquid staking solution Lido has $19.2 billion in staking assets derived from five different blockchain networks including Ethereum, Solana, Terra, Polygon, and Kusama.”

From the customer’s point of view, staking is similar to an interest savings account in a traditional bank. In terms of the approach, “the network is very unique. Most networks have gone to financial operations. Hedera with its council members always went for real-world applications first,” said Gautam Midha, Head of Strategy and Expansion, Stader Labs.

The response from the market has been great. Midha’s team went with liquid staking tokens instead of plain staking tokens. With liquid staking tokens, investors get a token back and can reinvest. The token can be used as collateral on upcoming lending platforms or liquidity on DXS.

“That’s the whole idea of liquid staking that you don’t lock yourself in,” Midha said. “You get the yield, but you also participate in the ecosystem growing up.

“The bigger picture, the idea is to kickstart the DeFi ecosystem in Hedera, and it was important to maintain that liquidity with the users,” Midha said. The product on Hedera is open. People can see transactions.

Security is vital. Each product is in its token, so it has all security features already built. Stader will upgrade systems with more features and an independent audit firm for the V2 product. We have more eyes on the code and can do the best possible to provide the most secure network.

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