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SD rewards

What is SD collateral?​

The SD token plays a vital role in the Stader platform, serving as the governance token. It allows the Stader community to actively participate in shaping the platform's direction. Therefore, to add a validator to the nodes on the Stader Network, permissionless node operators are required to bond SD collateral for each validator. In return, the node operators receive SD rewards for their bonded SD collateral.

The minimum and maximum limits for SD collateral when adding a validator are as follow:

  • Minimum SD collateral: 0.4 ETH worth of SD (10% of your ETH bond)
  • Maximum SD collateral: 8 ETH worth of SD (200% of your ETH bond)
Note
  • SD collateral snapshots are taken daily at a random block. Therefore, if the SD collateral value falls below the 10% limit, the node operator will not earn SD rewards for that day.
  • We recommend maintaining an SD collateral buffer (above the 0.4 ETH worth of SD limit) to avoid any reward loss due to price fluctuations.
  • Due to price fluctuations if the SD collateral value for your validators drops below 0.4 ETH worth of SD, then the node operators need to top-up the SD collateral else they won't receive SD rewards on their bonded SD.
  • For SD collateral withdrawal, the node operators can withdraw any collateral exceeding the 200% SD collateral limit (8 ETH worth of SD). To withdraw the entire SD collateral, the node operator will need to exit the validators.

SD collateral rewards​

  • During the first four months of operation, i.e. June '23 to September '23, Stader will allocate a pool of 200K $SD token rewards to permissionless node operators.
  • Each operator needs to have SD collateral deposited against their validator, ranging from a minimum of 10% (0.4 ETH worth of SD) to a maximum of 200% (8 ETH worth of SD).
  • Approximately every 28 days, a Merkle tree will be generated to allocate SD rewards to each node operator. Node operators can claim their SD rewards by following the steps provided in this link: Click here
  • Node operators can deposit more than 8 ETH worth of SD as collateral, but any excess collateral beyond the 200% limit will not earn SD rewards.
  • SD collateral snapshots are taken daily. Therefore, if the SD collateral value falls below the 10% limit, the node operator will not earn SD rewards for that day.
  • We recommend maintaining an SD collateral buffer (above the 0.4 ETH worth of SD limit) to avoid any reward loss due to price fluctuations.

SD token address (Mainnet) : 0x30D20208d987713f46DFD34EF128Bb16C404D10f

SD token address (Testnet): 0x0406f539f24Be69baa8b88ED6eABEdb7b3cfdc60