Research Summary
The report discusses the performance and future prospects of Stader Labs, a multi-chain liquid staking solution. It highlights the company’s strategic plans, including a significant token burn, revenue-based buybacks, and sustainable reward emissions. The report also mentions Stader’s mission to onboard 1 billion people into staking and DeFi.
Key Takeaways
Stader Labs’ Growth and Mission
- Impressive Growth: Stader Labs has experienced significant growth since its inception, with a quarter-on-quarter growth rate of over 225%. The company has a total value locked (TVL) exceeding $700M and is active on four PoS blockchains—Ethereum, Polygon, BNB, and Hedera.
- Stader’s Mission: The company aims to onboard 1 billion people into staking and DeFi by providing efficient and user-friendly methods for earning staking rewards and engaging in DeFi opportunities.
Tokenomics Revamp
- Major Token Burn: Stader plans to burn 20% of its $SD token supply on June 25, reducing the total supply from 150 million to 120 million. This move is expected to create scarcity and increase the demand and value for $SD tokens.
- Revenue-Based Buybacks: The company will use 20% of its revenue for quarterly SD token buybacks, ensuring consistent buying pressure and gradually decreasing the circulating supply.
- Sustainable Reward Emissions: Stader will implement controlled reward emissions, ensuring that TVL growth surpasses the scaling of rewards, maintaining a healthy balance.
Increased Utility & Insurance Coverage
- Expanding SD Token Utility: Stader plans to expand the utility of its SD token with new use cases like insurance for ETHx nodes. This move is expected to increase demand by locking up more tokens, reducing supply, and boosting intrinsic value.
Strategic Expansion
- Exploring New Avenues: Stader is not only expanding its presence in the LST ecosystem but also exploring new avenues for growth in emerging sectors, including opportunities in RWA and the Bitcoin staking space.
Actionable Insights
- Monitor Stader Labs’ Growth: Given the company’s impressive growth rate and ambitious mission, it may be worthwhile to keep an eye on its progress and strategic moves.
- Understand the Impact of Tokenomics Revamp: The planned token burn and revenue-based buybacks could significantly impact the value of $SD tokens. Understanding these changes could provide insights into the future performance of these tokens.
- Assess the Potential of SD Token: With the planned expansion of its utility and the introduction of new use cases, the SD token could offer increased value. Assessing its potential could provide valuable insights.
