Thread by @staderlabs

What's behind Stader's Unique Mechanism?

Here's how we boost your staking returns, reduce gas fees, and add smart compounding benefits on top:

blog.staderlabs.com/explainer-stad…

TLDR?

Stader's value prop for @terra_money users:

* Auto-compounding of Luna rewards

* Auto-convert stables to Luna, and auto-compound it. Currently, 40% of staking rewards are paid in stables

(This means additional Luna re-staked and appreciating at the same time).

Next:

Gas fees:

The cost can become super expensive if a user manually compounds.

With Stader's smart compounding, a typical user is saving significant gas fees while enjoying compounding.

Claiming rewards, swapping stables and staking Luna fees are covered by Stader.

Next:

APRs on Stader dApp:

APRs shown on Stader are actual values based on staking rewards and airdrops received.

What are Stader plain staking fees?

Stader charges 3% of staking rewards as plain staking fees. We do the following:

- Claiming and compounding staking rewards
- Claiming, swapping stables to Luna and re-staking
- Claiming and distributing Airdrops in 1-click

Next:

Can I use Stader without paying fees?

Yes, you can still stake with Stader and choose the retain rewards strategy (free of charge).

- You can enjoy convenient validator choices, 1-click Airdrops and claim rewards within Stader.

- You will have to auto-compound manually

Why are the fees on $LunaX different from Plain staking?

$LunaX is a liquid staking token that allows you to add a potential yield boost on top of your staking.

- Immediate unlock on DEXs
- Leveraged Staking
- Borrow as collateral
- LP fees
- And so much more