Integration of Stader Pools for Anchor collateral staking

Key Contents

  1. Summary of the Proposal
  2. Details about Stader
  3. Need for Alternate Validator pools
  4. Stader Fees
  5. Governance for bLuna stakers
  6. Yield enhancing strategies to amplify reserves

1. Summary of the Proposal

  • Stader proposes addition of Stader validator pools to the list of options where Anchor’s users can stake their collateral. Following are the benefits of this addition:
  1. Creation of alternative validator pools for Anchor, providing choice for Anchor users and increasing decentralization
  2. Provide an opportunity for several high performing validators, who are not currently included under bLuna pool to receive delegations from Anchor
  3. Stakers who stake with Stader pool will be eligible to claim protocol air drops
  4. Reduce risk for Anchor from reliance on a single pool of validators
  5. Leverage on-chain validator performance metrics to rebalance delegations to provide best returns and reduce slashing risks. Helps enhance Anchor reserves and benefits users.
  6. Leverage Stader’s smart DeFi yield strategies on staking rewards to generate higher returns vis-a-vis staking returns (Phase 2)

Detailed Proposal

2. Stader Introduction

  • Stader background: Stader smart contracts launched on Terra on Nov 20th and we already have:

    1. 5.5M+ Luna staked on Stader validator pools
    2. 12k+ unique wallets staking with Stader pools
  • Stader currently has 3 validator pools (20 validators) as detailed below.

    1. Blue chip
    2. Community Validators
    3. Air drops Plus

Validators have been selected based on stringent and transparent performance criteria detailed here. Including stringent thresholds on performance and slashing history.

Stader will continue to expand the # pools and validators every month with a high bar on performance.

Link to validator expansion post here.

  • Stader’s smart contracts have been audited by Cryptonics and here is the full audit report. We will have a multisig for ANC staking contract and the holders will be:
  1. Members voted by ANC tokenholders
  2. Terra Management
  3. Key Lunatics community members
  4. Stader team
  5. Stader investors

3. Need for Alternate Validator pools

  • Many Anchor users would like to have better choice regarding the validator pool selection
  • There are several high performing validators offering competitive commissions in the Terra ecosystem that are currently not included in the bLuna validators set. Many of them actively contribute to the development of the Terra ecosystem.
  • Stader’s pool provides an opportunity for such high performing validators to be part of the pool in a transparent way and receive delegations from Anchor
  • This will enhance decentralization of stake on Terra while providing an alternative choice of validator pools for Anchor
  • Stader’s KYV (Know Your Validator) solution tracks key validator performance data including Up time, Oracle commits, APR, commission changes etc. This will enhance decision making on validator selection, rebalancing of delegations.

4. Stader Fees

  • Initially Stader’s fee will be set at 3% (same as Stader stake pools). The maximum fees charged by Stader will not exceed 10%.
  • Any changes to fees/ commissions will be subject to Stader and Anchor governance approval.

5. Governance for bLuna stakers

Stader will create a proxy-vote contract capable of aggregating votes for its staking contracts and finally, in a programmatic & time-sensitive manner, will cast the aggregated vote.

Stader will always vote thereby amplifying the participation of stakers in governance.

For details on governance: Link

6. Yield enhancing strategies to amplify staking rewards (Phase 2)

  • Stader smart contracts have the flexibility to redirect staking rewards (Luna/ stables and Air drops) to any DeFi protocol and amplify yields.
  • Staking yield redirection can be customised and dynamically reset to several protocols based on market conditions and other parameters
    • E.g. Direct 30% of staking rewards to Apollo pool, 30% to Luna <> bLuna pool and remaining 40% to UST
  • Stader will provide a way for stakers to receive and claim air drops without liquidating them. We are providing this with LunaX already.

Looking forward to receiving community member’s feedback about this.

21 Likes

Happy to see this proposal. It’s great to have more options for users.

3 Likes

This would be a huge win for LUNA stakers with higher yield, choice of validators promoting decentralization (which is one of the few common talking points I hear attacking Terra among Ethereum users who would be prime to adopt using Terra), and optimizing for airdrop claims, which is something I believe many don’t realize they’re missing out on with bLuna.

3 Likes

I like the idea of more choices for delegation, but the recent bLuna upgrade proposal, that was voted on and passed, removes that choice from the user adding an automatic registry, how would this proposal integrate with that?

I understand that having one Luna collateral is an easier choice for the end-user, but I always believed bLuna to be a Lido thing, with Stader being a competitor how would this work?

I expected this to happen but with a bLunaX or something of the sort.

2 Likes

All about options.
Wondering why we can’t just open this up to a large selection of validators, without Stader or Lido.
There isn’t really anything preventing anchor users from opening up the validator list without a gatekeeper.

We can just attach tracking metrics to the contract, and manage the bLuna staking without a second party.

2 Likes

bLunaX is the phase 2 that is mentioned at the end. Will be coming out in future updates. On the selection, we are working with the ANC team on the flows.

1 Like

Interesting suggestion. Would urge you to consider validator curation, monitoring and rebalancing. Additionally, smart contracts that do air drops claiming and bLunaX version in the future. Probably a decent value added service.

I imagine the end user will be given a choice on where to put their capital in the UI if this passes.

5 Likes

I guess I’m misunderstading the proposal, thought this was about adding Stader pools to the validator choices, and mint the current bLuna? But from the answers I’'m guessing this is about creating a new kind of bLuna collateral (bLunaX just to make the conversation easier)?

1 Like

Would be happy to see this happening. It means more options and a huge win for all of us. Phase 2 (yield enhancing strategies) is above all exciting to me. Especially the customized and dynamically reset yield redirection

1 Like

LFGGGG. Can’t wait!!!

So what happens to emissions with bLunaX? Are they all redirected away from the Anchor protocol, will bLunaX interfere with the yield reserve?

bLunaX is the phase 2 version. The emissions to go Anc reserves (for those users who put bLunaX as collateral).

1 Like

So we are getting airdrops but the rest of the rewards go to Anchor Borrow when staked as collateral? If that’s the case then this is amazing. :slight_smile:

2 Likes

Yep. You are right. Idea is to enable 1-click air drops claiming for users and get yield to Anc reserves.

1 Like

Airdrops and getting collateral on ANC, it’s like heaven on earth.

2 Likes

So far lunax being a huge staking pool has diluted most of the airdrops to its users.

Looking forward to a similar case scenario to astroport airdrops where stader would have ended up horribly diluted. One would actually expect not good airdrop rewards.

So i dont think that’s a really good selling point, not for now at least.

I like the fact that it adds more flexibility/diversity to validator selection but we should also consider that its adding an external risk if stader were to fail or get hacked somehow. But as stated above this should not depend on external service providers, there should be more flexibility from anchor to allow a more diverse validator selection.

Just my opinion…

With your point, I believe your missing that bLuna and bEth are already from external service providers, it’s being done by Lido. I believe what Stader is asking, is to become another provider of collateral for Anchor, so in a way this proposal reduces risk, theorically.

2 Likes

If you are referring to air drops distribution for LunaX holders, it shouldn’t by any different than staking Luna. Over the past 2 weeks, the air drops distributed by protocols it self is low hence you might be seeing lower # air drops.

For Luna <> LunaX LP holders, air drops will only be given to the portion of LunaX alone. Hope this answers the question.

Unless protocols impose caps on air drops to contracts (we are actively working with some of them to whitelist the contracts), there shouldn’t be any difference in air drops.

1 Like

I think this is a great idea. In addition, I believe anchor should add staking options for a number of coins (ETH, DOT, SOL, LUNA, ATOM, etc) then take the deposits and delegate to the best validators on those chains. Keep 10% (estimate) of staking rewards to put towards UST yield/reserves. If Anchor can do that with a number of chains, anchor could be the go to place for the average user to stake their coins. Due to the face that some chains have 21 day unbonding periods, anchor could offer lower staking yields for the ability to unstake at anytime.

I think this would attract users from all ecosystems and add a new stream of revenue for anchor to boost yields. If I could get 5% on ETH (post merge), 12.5% on DOT, 6.5 % on SOL, 7% on Luna, and 10% on ATOM AND 19.5% on UST ALL in one place I would keep most of my coins on Anchor.