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Stake DAO
Stake DAO is an asset management protocol built on Ethereum and it launched in January 2020. The platform also supports other blockchains including Polkadot, Solana, and Near. [7]
Liquid Lockers
Stake DAO Liquid Lockers allow users to use power from lockable tokens (e.g. FXS, ANGLE, CRV) without having to compromise on yield, voting power, or liquidity. Anyone who supplies assets can get the maximum yield boost while retaining full voting rights and benefits of their token's native protocol, as well as the ability to boost voting rights, on-sell them, and exit their position back to the underlying token. [8]
With Liquid Lockers, users can lock the native token in the Liquid Locker and receive a sdTOKEN in return. For example, users can lock their FXS via Liquid Lockers, receiving sdFXS tokens in return. For every one FXS locked, the locker will mint one sdFXS. This architecture allows sdFXS holders to vote, off-chain via Snapshot, for the FXS gauges allocation on Frax, once per week.[9]
MAV Liquid Locker Goes Live
On July 7, 2023, Stake DAO announced that the MAV Liquid Locker was now live. This provides a user with the ability to deposit Maverick Protocol's MAV token and receive an equivalent amount in sdMAV. sdMAV represents the liquid share of Stake DAO’s veMAV locker.[18]
By holding sdMAV, users can experience the advantages of veMAV, including enhanced governance power, incentives for voting, and potentially native yield in the future. [18]
Votemarket
Votemarket is a vote incentive platform that operates on top of Liquid lockers. Its main goal is to achieve maximum profit on veToken votes and provide a way to value voting rights fully. [10]
Stake DAO has been involved with the vote incentive market since the launch of the Liquid Lockers. It has played a dual role as a vote incentivizer and a voter, giving it valuable insights into areas that need improvement or that may be missing altogether. [10]
Votemarket Technology
For the vote incentivizer: The vote incentivizer will create a vote incentivize contract for each parameter(gauge, vote incentivize token) it needs. Once this contract is created, it doesn’t need to be created again. [10]
The inputs for the creation of this vote incentivize are Gauge address, Token address, Token amount, number of weeks for the program (minimum being 2), Blacklisted addresses, Maximum price per reward (token/vote). [10]
The contract works with 7-day epochs ending every Thursday at 12 a.m. UTC, which is when the CRV emissions are updated. It uses the following variables: Remaining weeks, Contract Balance, Claimable balance, and Eligible slope. [10]
Tokenomics
Stake DAO Token
The SDT is the token earned by users who deposit their tokens into the DAO and functions simultaneously as the native token of the platform. After the expiration of a set time, the SDT tokens deposited are distributed to all users in a manner proportional to the number of fees individual deposits generated as revenue for the DAO platform. To receive and claim their portion of the DAO fees, holders of the token would then need to stake their earned SDT. Staking on Stake DAO is available for Elrond, Solana, Avalanche, Harmony, and Livepeer.[4][12]
veSDT
veSDT is the governance token of Stake DAO. It is an indicative token that represents having locked SDT for a set amount of time. The longer a user locks (up to 4 years), the greater their boost and benefits across the platform.[13]
Governance Process
The Stake DAO ecosystem is controlled by veSDT token holders who vote on off-chain proposals (on Stake DAO snapshot) that govern the ecosystem. Proposals that generate a majority support (>50% of the votes) are executed by the DAO Multisig. [20]
For a successful governance process, users are required to first create a proposal by using the proposal framework to share on the forum and then exchange with the community for a minimum of 2 days on the forum. Afterward, users can post the proposal on the Stake DAO snapshot by following the Proposal Framework. If successful, the proposal payload will be executed and implemented by the DAO Multisig. [21]
Strategies
Stake DAO's existing strategies for generating passive income are Liquid Locker Strategies, Passive Strategies, Options Strategies, and Premium Strategies. They work by depositing investors' tokens into liquidity pools on the Ethereum, Polygon, and BNB Chain markets' decentralized finance protocols. These protocols require liquidity of tokens to ‘make markets’, i.e. to run and process collective trading activity at reasonably stable prices. Whoever provides said liquidity via staking, the protocols offer them percentage-based rewards and more. Stake DAO periodically harvests these rewards and distributes them to its community of lockers, resulting in passive income. A small portion of the rewards (15%) harvested from each strategy is taken as a performance fee by Stake DAO and periodically distributed back to the community. [11]
Partners
B2B
Ecosystem
Architecture
Stake DAO Academy
Stake DAO Academy was launched by Stake DAO to make sure their users understand all the terms that the platform deals with. Academy has a goal to be a comprehensive resource for users' learning needs in the crypto space.[16]
Reserve's Investment
In June 2023, stablecoin protocol Reserve announced that it would be investing $20 million into the governance tokens of yield farming apps Stake DAO (SDT), Curve (CRV), and Convex (CVX). The investment is intended to increase the liquidity of Reserve’s stablecoins, called RTokens and also to increase Reserve's voting power within these apps’ governance systems. [19]
The Reserve team stated that the $20 million investment may allow for new features for RTokens, including “collateralized loans, wallet products, tokenizing real-world assets, and more transparent fintech systems.”[19]
Stake DAO
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