Adding BNBx (Stader's liquid staking token) to Venus markets

Summary

Stader proposes addition of BNBx as collateral to Venus BNB market. Here’s why BNBx will be a strong addition to the Venus BNB market and benefits Venus community:

  1. About Staderlabs:
    BNBx is built by Staderlabs, a multi-chain liquid staking platform with ~115mn $ in assets, 20k+ users staking across BNB,Hedera, Polygon, Fantom, Near etc.

An example of a similar integration is the listing of MaticX (our liquid token solution on Polygon) on Aave

  1. About BNBx:
    a. BNBx is a BEP20 token that represents the user’s staked assets and accrued rewards. BNBx increases in value relative to BNB as staking rewards accrue. Currently, about 36,350 BNB is staked on BNBx contract (~$ 10.8 Mn) by >1000 stakers.
    b. BNBx has been audited by top security audit firms Halborn and PeckShield. Along with audits, we have had a security review from the BNB Chain team and we have $1mn bug bounty program live with Immunefi

  2. Halborn audit

  3. Peckshield audit

  4. Bug Bounty

  5. Liquidity for BNBx:
    a. BNBx has over ~5.2 mn$ of liquidity for BNB<> BNBx pool on Ellipsis (stable swap pool with low slippage) and ApeSwap.

b. Another Stable swap LP will go live on Sep 14th as per Wombat’s launch plan

  1. Price Oracle:
    Stader is in discussions with Chainlink and Pyth to develop calculated price feeds for BNBx

  2. Benefits to Venus and BNB Chain:

  3. BNBx unlocks liquidity on staked BNB. With BNBx, BNB holders can participate in both staking and Defi

  4. Several innovative DeFi strategies including Leveraged staking, delta neutral strategies can be built on top of Venus markets with BNBx as collateral, thus increasing utilization of BNB and stable coin markets on Venus

  5. Isolated lending markets on Venus can be built using BNBx as collateral thus improving the utilization of BNB

  6. Promote decentralization of BNB Chain as BNBx contract stakes with multiple high performing validators

  7. Proposed parameters for BNBx

  8. Collateral factor of 60-70% (since BNB has a C.F. of 80% and BNBx derives its value from BNB, and always backed by staked BNB with validators)

  9. Deposit cap of $5mn (appx 50% of the TVL)

  10. Liquidation penalty of 10-15%

Background about Stader

StaderLabs is a multi-chain liquid staking platform that enables 1-click staking with benefits like auto compounding, validator management, DeFi integrations, and more to help users maximize passive income on their native crypto tokens through Staking while also enabling DeFi on top of staked assets.

Stader is currently live on 6 blockchains, BNB, Hedera, Fantom, Polygon, Near & Terra 2.0. It has served over 70,000 users and, at its peak, had a max TVL of approx $1Bn!

Stader is supported by blue-chip private sale participants including Pantera Capital, Coinbase Ventures, Jump Crypto, Accomplice, Accel, Amber, True Ventures etc.

Adding BNBx to Venus BNB market

BNBx is a BEP20 token that represents a user’s share of the staked BNB assets with Stader. It is a token that increases in price as the staked BNB accrues staking rewards and these rewards are compounded i.e. BNBx simply becomes more expensive over time relative to BNB.

Safety and security are paramount for Stader and we have taken multiple steps to ensure the highest safety standards

  • Multiple third-party smart contract audits: Our code has been audited by two of the best-known firms in this space, Halborn and Peckshield
  • BNB Chain collaboration & testing: We have had a deep collaboration with the BNB chain team, who have given feedback on the architecture and also tested our code
  • Bug Bounty on Immunefi: Apart from our 2 independent audits, Stader also has a $1,000,000 Bug Bounty program on Immunefi.
  • Integration with Forta and Certora(ongoing) for continuous monitoring
  • Built-in security features: We have used multi-sig admins and best-in-class cloud security features while developing our solution.

You can explore Stader’s Liquid Staking for BNB by going over to the Stader Dapp: bnbchain.staderlabs.com

BNBx is available on BSC Scan at the address: 0x1bdd3Cf7F79cfB8EdbB955f20ad99211551BA275

BNBx liquidity pools

Overall about $ 5.2 Mn of LP across DEXs within a few days of launch. Plan to grow the LP size across DEXs to over 15-20 Mn over the next few weeks.

  • Ellipsis: Stable swap pool with an LP size of ~$2.7mn.
  • Apeswap: LP size of ~$2.5mn
  • Wombat: Our BNBx liquidity pool on the Wombat exchange will launch on 14th September to add further immediate liquidity options for BNBx holders
  • Additionally, we are in discussions with multiple other DEXs to add more liquidity pools in the ecosystem

To provide liquidity for BNBx , our strategy is to focus on stableswap pools which offer low slippage and are more capital efficient for liquidity providers

Benefits to Venus Community

We believe BNBx will be a great addition to Venus BNB markets as it will unlock several borrowing use cases including leveraged staking, borrowing other assets with BNBx and potentially several other trading strategies.

These new opportunities are expected to increase the utilization of BNB and stable coin pools on Venus , increasing the yield for lenders and attracting more users to the protocol.

We expect BNBx to continue to grow in demand as we integrate across more ecosystem partners, build automated yield strategies on BNBx <> Venus related markets.

Parameters

BNBx is always backed by BNB staked with validators via the Stader contract. As BNBx is a c-token and increases vis-a-vis BNB with staking rewards addition, we propose the following risk factors for BNBx.

  1. Collateral factor 60-70%
  2. Deposit cap of $5mn (appx 50% of the TVL)
  3. Liquidation penalty: 10-15%

We would like to hear feedback and update any specific information/ parameters as suggested by the Venus and BNB community.

5 Likes

Will be using bnbx and do leveraged staking once the integration goes through. Having to borrow stables is a great option too. Targeting good liquidity on stable pools help with liquid staking like steth on Curve/ Balancer.

1 Like

Fantastic to see 2 big projects coming together.
With the power of BNBx and Venus we can bring a tons of opportunities for BSC users

Very good proposal!
Let’s do it!

Very nice but need Chainlink price feed before considering listing it. Unlocking liquidity on BNB chain should bring in lot of TVL growth for Venus.

It’s good to have options for new markets. Liquid staking will bring a lot of liquidity to DeFi protocols like Venus, helping build money legos that benefit the whole ecosystem.

Great poposal. I think liquid staking is a good add of value to venus

Quick update on BNBx progress:

  • TVL has increased by ~50% to $15mn+ (53k BNB)
  • Number of stakers has increased more than 2x to 2300+
  • Total liquidity across all DEXs also doubled to $12mn+ ($10mn+ in low slippage stableswap pools)

With the progress evidenced by these updated , we believe BNBx is now an even stronger prospect for listing on Venus markets

3 Likes