MaticX is a liquid token that you get when you stake your Matic with Stader. The MaticX tokens are a representation of your staked Matic. They allow you to swap them at a later date for your staked Matic and accrued rewards with Stader.
MaticNews x Staderlabs AMA Recap and Transcript
MaticNews: Let’s kick start with an introduction of you and your team, tell us about your past experiences and roles in Staderlabs?
Staderlabs: Thanks for the opportunity GP... Glad to be here!
I am Vibin. I am currently leading Stader’s project on Polygon and Fantom. I have ~10 + years of experience across strategy consulting and technology startups.
MaticNews: Pleasure is all ours to have such an important project on the chain!
Staderlabs: To talk a bit about the founding team as well, Stader was started by Amit (Co-founder, CEO) and Sid (Co-founder, CTO) about 12 months ago. Amit comes with ~10 years of strategy consulting and start-up experience and Sid, our tech co-founder, comes with a decade of experience in tech and crypto.
Staderlabs: Thanks! Very kind of you to say. Look forward to sharing more about Stader and MaticX. Overall, we have a strong team with crypto experience building staking products across chains, including Polygon, Fantom, Hedera and Terra. We had first started on Terra and prior to the recent Terra crash, we were managing ~750 mn of TVL and were trusted by ~40k users.
MaticNews: Wow that’s an amazing introduction! Especially it’s so nice to see a project of your big size coming to polygon, especially with such an useful type of product!
Staderlabs: Great to be building on Polygon!
MaticNews: Just out of curiosity…Why did you choose the name ‘Staderlabs'’? Is there any story behind it?
Staderlabs: Stader is actually short for Staking derivatives, we believe Staking is going to play a crucial role in making blockchains more environmentally friendly without compromising on scalability/security. We wanted to focus on enabling access to staking and staking derivatives and hence the name.
MaticNews: Thanks for the simple and clear explanation! Let’s go more in depth!
Give us a brief introduction of Staderlabs.com and what exactly does it do for the Crypto space?
Staderlabs: As Stader, our mission is to build staking infrastructure that will help make staking convenient and safe for all users while also helping decentralize proof of stake chains. Our dream is to help bring the next 1B+ users to staking. There are multiple challenges from a user standpoint from access to ease of use to convenience and safety that are preventing this journey from happening and we want to help solve that.
MaticNews: Well, looking at your total TVL you are on the right direction to reach your goal!
Tell us about the chains that Staderlabs currently works with.
Staderlabs: We are currently live on Polygon, Fantom, Hedera and we just went live on Terra 2.0 today.
MaticNews: Very interesting choice of chains, in my honest opinion the most promising ones for the next bullmarket. How did you chose to launch on Polygon? How has your experience on this chain been?
Staderlabs: As the world is becoming aware, Polygon is not a specific Ethereum scaling solution but a full suite of them! We’re thrilled about the possibilities enabled by this faster, cheaper layer. Our staking solution will help to further strengthen the thriving Polygon ecosystem which sees ~3.5m+ daily transactions, ~142m+ unique users and has more than 19,000 DApps. And its been a great experience so far from support of the community to that of the foundation and the other protocols. Looking forward to building together!
MaticNews: What is the core issue that Stader aims to cater to and resolve? What unique features does Staderlabs offer?
The process of staking can be painful for users - first they have to do their own research with sometimes scant data on the right validator to stake with, next once they have staked they have to claim and autocompound their rewards manually for maximum yield.
On top of this, once users stake, those assets are with the staking contract and cannot be used for any Defi opportunities.
In addition to these typical problems, on Polygon, users have to stake on Ethereum directly which can be gas intensive and involve moving Matic around between Polygon mainnet and Ethereum.
Stader simplifies all these problems with MaticX.
We allow users to stake on Ethereum or Polygon as their convenience. We also simplifiy staking for users by pre-selecting a curated set of validators chosen basis high performance/safety. We auto-compound rewards as well. Plus, MaticX is a representation of staked Matic and can be used in Defi while continuing to earn staking rewards. So users no longer have to choose between Defi and securing the network through staking.
MaticNews: That’s a very simple and clear explanation of why your product is useful and amazing.
KEY QUESTION: Explain the functioning of your protocol
Staderlabs: MaticX is a liquid token that you get when you stake your Matic with Stader. The MaticX tokens are a representation of your staked Matic. They allow you to swap them at a later date for your staked Matic and accrued rewards with Stader. Meanwhile, you will be able to use it on multiple protocols on Polygon to participate in DeFi.
MaticX is a cToken that continues to increase in value relative to Matic as staking rewards get accrued.
MaticNews: Furthermore, starting from your core, do tell us which are the use cases of $MaticX?
Staderlabs: As i mentioned, MaticX allows users to participate in staking as well as Defi and represents user's staked Matic. MaticX delivers an 8.5% APY from staking rewards and can be redeemed for Matic + accrued rewards on Stader Dapp in <100 checkpoints (~2-3 days). Users can also get instant liquidity on Dexs like Quickswap, Balancer and Meshswap.
Of course, this is just the beginning of what MaticX delivers. With the Defi opportunities we have lined up, users can add a layer of staking rewards to their Defi strategies.
MaticNews: What are the current and upcoming DeFi opportunities with MaticX?
Firstly, users can yield farm by providing liquidity to Matic <> MaticX pools on Balancer/Quickswap and earn 20% + APR with no impermanent loss (thanks to Matic-MaticX being correlated assets)
Plus, there's new rewards going live for Matic-MaticX and Matic-USDC pools on Meshswap from 00 00 UTC on 3rd June! Watch out for SD airdrops + MESH rewards.
Secondly, users can autocompound their yield from LPs on Beefy finance and Autofarm.
Thirdly, we are opening up lending/borrowing.
Users can today use MaticX as collateral and borrow QiDAO's MAI or Matic on Market XYZ opening up multiple interesting possibilites like recursive looping! One could borrow matic with Matic X as collateral, mint MaticX again and then borrow Matic with that and continue the loop 3x or so safely and earn leveraged staking rewards.
We are also working in the background to bring the same possibilites in Hundred finance, AAVE v3 (we are in the proposal stage and will go to snapshot vote soon and would love to have the support of this community
And a few more protocols in the works to open up leveraged yield farming, vaults and more. We should have more updates soon.
MaticNews: Talking about the security side, the clichè question that we ask in all AMAs: Is there any audit or KYC done?
Staderlabs: Thanks for bringing this up. Definitely a very important aspect to share with the community. Security is a top priority for us. We have successfully completed two indepent audits for MaticX with Halborn and Immunebytes. Across chains, we ensure we have multiple independent audits.
We also have a bug bounty program currently live with Immunefi
Plus, we have a strong team that's both focused on security and experienced in managing large TVLs (~750 mn $ in TVL, over 40k wallets staking with us, just prior to the terra crash)
MaticNews: How does Stader generate revenue and how it is being strategically used for the current projects and allocated for the future ones?
Staderlabs: Stader charges a 10% commission on the rewards generated from staking (nothing on the base capital, only on the earned staking rewards). The 8.5% APY offered to users on MaticX already accounts for this commission - so users receive the ~8.5% yield. We are very early on the liquid staking journey on polygon and reinvest almost the entirely of it to build deep liquidity for Matic<>MaticX pools and other use cases on Defi.
MaticNews: Do you have a roadmap or long term plans that you can share with us?
Staderlabs: We have so far enabled staking on Polygon. We are also launching unstaking directly on Polygon by early next week. Also, we will continue to build the right protocol integrations to maximize the Defi possibilities with MaticX.
In the medium term, we would lvoe to hear from the community and will keep conversations going on what we could build next. We could bring other potential solutions such as making staking simpler with plain staking or allow users to choose specific validators or build strategy vaults focused on leveraging MaticX
And outside of Polygon, we will be launching on BNB and NEAR in the coming months. Plus, we are exploring the next set of chains to provide liquid staking and help decentralize those PoS chains as well
MaticNews: I really think polygon community is one of the best in respect to all different chains, it’s way smaller the Binance Chain but the quality of its users is very high.
Staderlabs: Absolutely glad to be building on Polygon. What you mentioned is also the reason we wanted to be building here right on the heels on establishing the protocol on Terra where we launched.
MaticNews: Would you like like to add something more before the end of the AMA?
Staderlabs: No, thanks for the time! Glad to have had the opportunity to share more about MaticX and Stader!
Jun 6, 2022