Thread by @staderlabs

Staking can be quite profitable and fun.

However, there are 3 challenges that could crush the entire staking ecosystem...

And with it your staked assets as well.

Here are the 3 challenges plaguing the staking ecosystem...

And how to cure them.

🧶⏬

Challenge #1: The threat of centralization

While validators are the fuel that keeps a PoS chain running...

The threat of a few validators joining hands to derail a network always lurks in the shadows.

This leads to a potential risk of centralization.

The cure?

Encourage stakers to spread their stake across multiple validators.

That way, individual validators have fewer assets under their control.

Thus making it difficult for a few of them to join hands and command 51% or more voting power.

However, this poses another challenge.

Challenge #2: Identifying the right validator

Now the question is:

Which validators do you stake with?

Making this decision often leaves you with less hair on your head.

Because staking with the wrong validator could destroy your funds.

Here's how:

A PoS network severely punishes validators that misbehave.

The worst being slashing the tokens.

And if you have staked with such a validator...

Your tokens face the same heart-wrenching consequence.

The only way to prevent this:

Do your own due diligence.

Go through validator metrics carefully.

Look out for slashing history, high uptime, high self delegation, etc.

Stay away from validators with a poor track record.

And if you think you can relax staking with a good validator...

Think again.

Just because a validator has promising metrics doesn't mean...

They'll always remain so.

That's why you must constantly monitor validator metrics and behaviours even after staking with them.

Sounds painful?

Well, it's better than losing your assets.

Next:

Challenge #3: Struggles of a validator

Even validators struggle to find trusting delegators.

Especially at the start of their journey as a validator.

Not many trust them with their tokens.

Plus:

Many continue staking with the top validators (challenge #1).

Result?

High validator churn.

Over time, the network is left with fewer validators.

And even fewer high-quality ones.

That's bad news.

Because remember:

Higher number of validators = Greater stake spread = Less centralization risk

The cure?

Create an environment that empowers validators to attract delegators with unique offerings.

Create tools that these validators can use to build trust, offer their services, bring delegators to their world and engage with them.

This way...

Delegators will be able to learn about them.

And be able to trust their tokens with these validators.

Are the better and more efficient ways to cure these challenges?

There certainly are.

In fact:

Solving them presents a multi-trillion USD opportunity in the coming years.

And Stader is at the forefront of grabbing this opportunity.

Here's how:

Stader has already launched staking products that solve each of these three challenges.

They are:

1. Staking pool / Liquid staking

They allow you to stake with multiple multiple high-quality validators with one click.

So you don't have to worry about finding the right ones.

Plus:

Stader also auto-monitors validator behaviours.

That means:

Each validator is monitored against certain pre-set metrics.

If any of them violate these metrics, your tokens get relegated to another validator immediately.

Thus, protecting your assets before it's too late.

This way:

Stader solves challenges #1 and #2 simultaneously.

2. Stake+

With Stake+, small validators can create exclusive offerings to attract delegators.

These offerings could be:

- Exclusive content
- Behind the scenes sneak peek
- Access to VIP memberships

+ more.

Guess what?

These are only two of the three staking products you can use to your advantage at Stader.

And more are on the way.

Plus:

Stader is coming on several blockchains to aid and support their DeFi community.

And connect them to others across different blockchains.

That means:

You have more profitable opportunities to exploit across different blockchains.

Now that would be a dream come true, isn't it?

Finally:

Want a deeper look at what 2022 looks like for Stader?

Check out our 2022 roadmap here:

blog.staderlabs.com/staders-vision…