StellaSwap Staked DOTPrice

(STDOT)

stDOT is a liquid staking token representing your share of the total Polkadot (DOT) pool deposited with StellaSwap. It simplifies DOT staking by offering a liquid solution. The main problem it solves is the illiquidity and complexity of traditional DOT staking, which typically involves a 28-30 day unbonding period and requires manual delegation to validators. This makes earning staking rewards more accessible and flexible for DOT holders.

When a user deposits DOT into StellaSwap's stDOT portal, they immediately receive stDOT tokens in return. StellaSwap then takes these deposited DOT tokens and delegates them to a curated selection of validators on the underlying Polkadot network. As the delegated DOT subsequently accrues staking rewards from the network, the underlying value represented by each stDOT token automatically increases over time, reflecting these earned rewards.

The primary benefits include instant liquidity, allowing users to earn staking rewards without locking their assets, as stDOT can be instantly traded, bypassing Polkadot's unbonding period. It also unlocks diverse DeFi opportunities, enabling users to leverage stDOT across various protocols for additional yield generation, such as lending or providing liquidity. Furthermore, stDOT simplifies staking by removing the need for manual validator management, and its EVM compatibility ensures broad wallet support like MetaMask.

StellaSwap applies a transparent and straightforward fee structure for its stDOT liquid staking service. Specifically, there is a 10% fee levied on the user's earned DOT staking rewards. This means that from the total rewards generated by the staked DOT, StellaSwap takes a percentage as a service fee, with the remaining rewards accruing to the stDOT holders.

Traditional Polkadot staking is a more hands-on process, requiring users to manually manage several steps, including creating a specific stash account, bonding their DOT, selecting and nominating validators, and actively monitoring their performance and yield. In contrast, liquid staking with stDOT significantly streamlines this experience. It allows users to earn staking rewards automatically while maintaining complete asset liquidity, eliminating the manual steps and the traditional 28-30 day unbonding period associated with direct DOT staking.

Users can acquire stDOT by connecting their compatible wallet to the StellaSwap platform and depositing DOT (specifically DOT.xc, which is the representation of DOT on the Moonbeam network). Once acquired, stDOT tokens can be further utilized by wrapping them into wstDOT on StellaSwap's swap page. This wrapped version, wstDOT, expands its utility for broader engagement across various DeFi protocols on Moonbeam, such as providing liquidity in stDOT/DOT pools to earn additional rewards.