Stader Overview

Stader Labs

Stader Labs is working on a project called ETHx and SD, which focuses on decentralized alternatives for Ethereum staking. The project aims to address challenges faced by permissionless node operators, such as high capital barriers and limited choices for running nodes. Stader's ETHx tokenomics have been designed to reduce capital barriers, allow node operators to regulate exposure to Stader's SD token, and align interests between node operators and Stader through governance.

In the initial phase of ETHx tokenomics, permissionless node operators will need to bond a minimum of 0.4 ETH worth of $SD per validator, in addition to the 4 ETH bond. This additional SD bond acts as protection for user funds against poor performance by node operators.

In the second phase, which will be introduced a few months after ETHx launch, node operators will have the option to borrow SD in a collateral-free manner to cover the 0.4 ETH SD bond requirement. This will enable a section of node operators to maintain ETH-only exposure and run nodes for LSDs (Liquid Staked Derivatives) for the first time in the Ethereum ecosystem.

By following this design, node operators will have lower capital requirements (~4.4 ETH) to run ETHx nodes, which can be highly profitable. Additionally, the project aims to provide a significant value addition to the Stader protocol by offering share of protocol fees to SD stakers, encouraging node operators to lock up SD to shape Stader through governance, and providing additional utility for SD holders to earn real yield in ETH.

Please note that this summary is based on the information found in the search results for Stader Labs' project.