Enabling next-gen staking with SSV <> Stader

Summary

Stader Labs requests a grant to implement enhanced and decentralised staking experience for retail and institutional customers leveraging SSV infrastructure.

Stader will build modular smart contracts that can be customized for several use cases including:

  1. Offering simplified and automated staking experiences

  2. Auto-compounding staking rewards

  3. Redirecting staking yields to other DeFi opportunities

  4. Selection of highest quality validators

  5. Provide liquid staking on SSV validator network

  6. Customized staking pools for institutions and exchanges

  7. Optimised for taxation

  8. Compliant with regulation

Why SSV?

SSV and Stader share the core aim of improving the decentralization and robustness of PoS networks. While SSV focuses on building an open source protocol that enables distributed operation of an Ethereum validator, Stader’s core competency lies in building modular smart contracts that enable token holders to conveniently and safely stake across a large number of validators. Thus, SSV shares the same core objectives as Stader and has a product offering complementary to that of Stader, which is why we are seeking a partnership with SSV.

About Stader Labs

Introduction to Stader:

Stader’s vision is to help crypto users stake their assets conveniently and safely through its platform by building key staking smart contract infrastructure for Proof-of-Stake (PoS) networks that can be leveraged for several customer segments. Stader is building native smart contracts across multiple chains and building an economic ecosystem to grow and develop solutions such as yield redirection with rewards, liquid staking, launchpads, gaming, and more. Positioning itself for long-term growth. Stader will seek to focus on nurturing third parties to develop several staking applications with Stader infrastructure.

Current Traction

We launched on Terra on Nov 23rd and reached $500 M+ in Luna staked within 4 weeks. We currently offer two products. Stader has successfully launched two main products on Terra blockchain:

  1. Stake pools: Allows users to stake in pre-defined baskets of curated validators. Additionally users can code in yield redirection strategies to maximize return from their rewards

  2. Liquid staking: Allows users to receive a accretive(cToken) liquid token (LunaX) when staking, which can be used to participate in DeFi strategies and increase yield

Key Milestones since launch:

  • 25,000 unique wallets staking

  • ~5.9 M Luna Staked

  • ~1.7 M Luna on LunaX <> Luna LP

  • 50,000+ strong community

Additionally, we are doing several product integrations with hardware wallets, custodial service players for our Terra staking solutions.

High-level Overview of Stader’s solution leveraging SSV

We plan to take a phase-wise development approach to building Stader’s solution on SSV infra. The development plan is indicative only and can be changed based on governance and on business priorities.

Phase 1: (Mar’22 - May’22)

Validator categorization:

Classification of validators based on several parameters including but not limited to:

  1. Network Performance
  2. Compliance to regulations
  3. Geography of operations
  4. Financials including historical returns, commissions etc.

Provide liquid tokens for staking with SSV validators -

  • Creation of a liquid staking solution on Ethereum leveraging SSV infra and validator categorization.
  • Creating DeFi utilities for the liquid staking solution.

Phase 2: (Jun’22 - Aug’22)

Validator pools & auto-compounding:

  • Building multiple validator pools based on parameters determined by user preferences and governance
  • Auto-compounding staking rewards at optimal frequency to maximise returns

Redirect staking rewards to other DeFi Strategies -

  • Building yield redirection strategies on top of staking rewards
  • Integrations with top DeFi protocols to generate higher staking yields

Phase 3: (TBD)

Customized staking pools for institutions and exchanges:

  • Building customizations that let institutions, exchanges, custodians select validators based on their preferences.
  • Creating vaults that optimise for taxation for funds, institutions

Grant Amount for Phase 1

We anticipate the total cost of development for Phase 1 including Management, technical program managers, front-end development, audit to be USD ~300k-350k etc. The requested grant amount totals USD 120, 000 to only cover the cost of 3 development resources and 1 audit.

Payment terms (Would be great to receive 50% upfront and rest over monthly installments subject to delivery of agreed milestones)

Time Estimate and Budget for each feature

Feature Time Budget
F1 Validator categorization USD 20000
F2 Staking contract that stakes to SSV validators and issues liquid staking token (c-token type) USD 50000
F3 Dapp to interact with the contract. E2e testing and optimising on SSV testnet USD 25000
F2 Mainnet deployment, testing and e2e stabilization USD 25000
Total USD 120000

Grant Amount for Phase 2 and beyond

Stader will submit separate grant requests on a need basis for phase 2 and beyond.

6 Likes

This looks like making ssv dao pay to build another LIDO, Bloxstaking. ssv network can provide technical support, but I don’t think ssv dao should pay for it. Shouldn’t this be paid and built by yourself? I don’t know if I understand it right, see what others have said.

1 Like

I think the purpose of DAO grants is to help motivate teams to break ground on various types of developments that are SSV based.
From what I can understand they are breaking ground which IMO qualifies.
(also, 120K doesn’t cover all costs. Probably 10% or so).

just my 2 cents :slight_smile:

4 Likes

it looks nice features base on ssv

1 Like

I’ts very good news!!)

I support this and any other top-tier project that wants to integrate with SSV.

Thinking long term, having projects such as Stader voluntarily commit to being tightly integrated with SSV is a ‘good thing’ and the ROI on utilising DAO funds for the TVL we capture is ridiculously high.

Moreover, having projects that are cross-chain, not just ETH, could be useful for us in the future if we ever decide to have fun on other chains, leveraging our reputation and success on ETH, much like Chainlink did.

Further, 80% of this utility will be useful outside of the specific scope with Stader.

My only concern is on the timelines, which as we all may know, are unlikely to be precise, but that’s okay.

6 Likes

@everyone
:loudspeaker: Final call for this awesome proposal. We’re planning to move it to snapshot voting in the next few days. So please make sure you’ve asked all your questions beforehand.
—Ben

1 Like

For clarification, will any of the proposed solutions be added to the SSV protocol code directly as improvements? Or are all of these solutions meant to work separately outside of the SSV code itself, just interacting with the public endpoints of SSV?

If the latter, does development of any of these solutions prevent any of the same functionality being added into SSV directly in the future?

1 Like

Since it is deployed on Terra instead of Ethereum, will this integration finally be adopted by Operators on SSV network and finally benefit the SSV DAO? Or this just a fork of SSV and finally operate outside of SSV ecosystem with their second development,

1 Like

I think Stader Solution only builds on the top of SSV by the integration of public api endpoints. BTW, we will and hope to see more liquid staking solutions leveraging SSV tech.

3 Likes

:vertical_traffic_light: Voting is now open:
ssv.network proposal: Next-gen staking with SSV <> Stader (snapshot.org)

Every vote counts! :white_check_mark:
—Ben

2 Likes

Congratulations on the vote, could you please supply an address for the first 50% and also confirm that you are ready to receive the funds?

1 Like