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 the return from their rewards
2. Liquid staking: Allows users to receive an 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 build 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 with 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	Description	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
F4	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.