StakeDAO

Background and History

StakeDAO was developed to provide decentralized finance (DeFi) users with a comprehensive platform for maximizing yield through liquidity management, staking, and governance participation. As the DeFi space evolved, there was an increasing need for platforms that offered more than just basic yield farming or liquidity provision. StakeDAO emerged to fill this gap by introducing innovative tools such as liquid lockers, voting incentives, and sophisticated boosting mechanisms, allowing users to fully leverage their assets across multiple DeFi strategies.

By integrating governance and yield optimization under one roof, StakeDAO provides a seamless experience for users looking to enhance returns while actively participating in decentralized governance.

Key Features and Technologies

Voting Escrow and Boosting

StakeDAO employs a voting escrow (ve) mechanism, which is integral to how users engage with the platform’s governance and liquidity strategies. By locking SDT tokens into veSDT, users gain voting power, which can be used to participate in governance and influence platform decisions.

• Boosting Mechanism: By locking SDT tokens, users can “boost” their returns across various strategies, effectively increasing their share of rewards based on the amount of veSDT they hold.

• Gauges and Liquidity Wars: StakeDAO introduces a gauge system, allowing veSDT holders to direct liquidity to specific pools, often leading to what is known as liquidity wars. In this system, users compete for higher rewards by voting to allocate more liquidity to their preferred pools.

Liquid Lockers

The Liquid Locker is a unique feature that allows users to stake assets like CRV or SDT into a liquidity pool while still retaining the liquidity of their tokens. This allows users to earn yield from staking while maintaining flexibility to use their staked assets within the DeFi ecosystem.

• asDCRV and vsDCRV: Users can lock their CRV tokens into liquid lockers to receive either asDCRV (auto-compounding) or vsDCRV (voting escrow for governance participation). These tokens enable users to optimize their yield and simultaneously participate in governance decisions across different DeFi platforms.

• APR and Fees: The liquid locker system offers competitive annual percentage rates (APR) for users who lock their tokens, with transparent fee structures in place for staking, boosting, and governance participation.

DeFi Strategies

StakeDAO offers a wide range of strategies for maximizing returns on staked assets. These strategies are designed to optimize yield through techniques like auto-compounding, cross-platform staking, and liquidity farming. The platform supports both basic and advanced strategies, allowing users to choose their preferred risk-reward balance.

• Strategy Fees: Each strategy comes with clearly defined fees, ensuring transparency for users. These fees are used to maintain the platform and are partially redistributed to liquidity providers and governance participants.

• OnlyBoost: The OnlyBoost strategy allows users to stake their tokens for maximum yield by focusing entirely on boosting rewards through veSDT locking. This is a popular option for users who want to prioritize rewards over governance participation.

Usage and Applications

Staking and Yield Optimization

StakeDAO offers several ways for users to stake their tokens, including traditional staking and liquid lockers. By locking their assets into liquid lockers, users can earn yield while retaining the flexibility to use their tokens across other DeFi platforms. The staking mechanism is optimized for yield generation through techniques such as auto-compounding, allowing users to maximize their returns on assets like CRV and SDT.

Governance and Voting

StakeDAO’s governance structure is centered around veSDT, the voting-escrowed version of the SDT token. By locking SDT tokens into veSDT, users gain voting power that can be used to participate in governance decisions, such as directing liquidity, setting platform parameters, or influencing key decisions.

• Vote Market: The Vote Market allows users to monetize their voting power by selling or renting it to other participants. This feature incentivizes participation in governance and creates an additional revenue stream for veSDT holders.

Boosting and Liquidity Wars

The platform’s boosting mechanism incentivizes users to lock SDT tokens for veSDT in order to increase their share of rewards. This mechanism is key in liquidity wars, where users compete to direct liquidity to their preferred pools, resulting in higher rewards for the winning pools.

SDT Token: Governance and Utility

Overview

The SDT token serves as the governance and utility token of StakeDAO. Users can lock SDT into veSDT to participate in governance, boost their rewards, and gain influence over liquidity allocation through the gauge system.

Tokenomics

• Total Supply: The total supply of SDT is capped, ensuring a deflationary model over time.

• Utility: SDT tokens are used for governance, liquidity provision, and boosting rewards within the platform’s ecosystem.

Governance Structure

The governance model revolves around the veSDT token, with SDT holders locking their tokens to participate in decision-making. Governance proposals can be submitted by the community, and veSDT holders vote to implement or reject proposed changes.

• Vote Incentives: StakeDAO also offers vote incentives, rewarding users who actively participate in governance decisions, thereby encouraging greater community involvement.

Notable Events

• February 2021 — StakeDAO Platform Launch: StakeDAO launched with its core staking and governance features, offering users access to various DeFi strategies and liquid lockers.

• July 2022 — Liquid Locker Introduction: The platform introduced the liquid locker system, allowing users to lock assets like CRV and SDT into liquidity pools while maintaining flexibility.

• October 2022 — Vote Market Launch: The Vote Market feature was launched, enabling veSDT holders to monetize their voting power through trading or leasing their votes.

Relevant Metrics and Data

• Staking APR: StakeDAO provides competitive annual percentage rates (APRs) across its liquid locker and staking products, with transparent fees.

• Governance Participation: The platform has a robust governance structure, with high levels of participation through veSDT locking and vote markets.

• Security Audits: StakeDAO has completed multiple security audits to ensure the safety and integrity of its smart contracts.