Stader is a multi-chain liquid staking protocol that supports ETH, MATIC, BNB, and several other chains. On Ethereum, Stader's ETHx token uses a permissionless node operator model similar to Rocket Pool, where operators stake SD (Stader's token) as insurance and receive pooled ETH to run validators.
ETHx Architecture
ETHx is Stader's Ethereum LST. Node operators provide 4 ETH (lower than Rocket Pool's 8 ETH) and stake SD tokens worth at least 0.4 ETH as insurance collateral. The lower ETH requirement reduces the capital barrier for node operators, potentially enabling greater decentralization.
ETHx's exchange rate appreciates over time like rETH (non-rebasing). Stakers receive ETHx worth approximately 0.95 ETH/ETHx at inception, with the ratio growing as validators earn rewards.
SD Insurance Mechanism
SD tokens staked by node operators act as first-loss capital against slashing. If an operator is slashed, SD is liquidated at market prices to compensate ETHx holders. This creates alignment between operator behavior and SD token value — if many operators are slashed, SD price falls, reducing insurance coverage effectiveness. This feedback loop incentivizes high-quality operator selection.
Multi-Chain Staking
Stader's expansion across multiple chains gives it broader reach than Ethereum-only protocols. MaticX (on Polygon), BnbX (on BNB Chain), and similar products follow the same LST model. Cross-chain yield aggregation allows Stader to attract capital from multiple ecosystems.
SD Token
SD functions as both insurance staking collateral for node operators and governance token. SD holders vote on operator permissioning, fee rates, and cross-chain deployments. A portion of staking commissions flows to the SD staking pool, providing yield to SD holders beyond governance rights.