What is staked SCRT ($stkd-SCRT)
Staked SCRT (stkd-SCRT) is a liquid staking derivative built by Shade Protocol enabling users to secure Secret Network and other application protocols without exposing their privacy, all while earning staking rewards. Simply purchase or mint a liquid staking derivative (such as stkd-SCRT) and immediately start to privately accumulate staking rewards while simultaneously putting your staking derivatives to work with liquidity providing, lending, trading, and more.
The following is a list of stkd-SCRT features:
Fungibility
Privacy-preserving staking
Automatic reward compounding
Reduced slashing risk
Improve Secret Network performance
LP opportunities
Lending opportunities
With stkd-SCRT, users are able to move, trade, and leverage their locked staking assets by minting or buying a liquid token representation of these underlying positions (in the form of stkd-SCRT). This unlocks an incredible amount of value for users, and helps power Shade Protocol and Secret Network DeFi.
Stk-SCRT governance
Governance logic exists within the staking derivative contract that will allow both SHD and stkd-SCRT tokenholders to be able to vote on Secret Network governance proposals. This is a unique feature that empowers Shade Protocol as an application layer protocol to partake in governance.
What's the difference between unbonding stkd-SCRT instead of selling it on a DEX?"
When you unbond stkd-SCRT, a small withdrawal fee of (0.05%) is incurred. After 21 days, you will be able to claim SCRT + all of the accumulated staking rewards. The downsides to this method are the following:
Unbonding fee
21 days of unbonding
The alternative is to sell your stkd-SCRT on a decentralized exchange (DEX). The prices of stkd-SCRT on a DEX reflects the value of the underlying SCRT + accumulated staking rewards. Thus, you can sell and instantly realize the upside of the passively accruing staking rewards without needing to wait 21 days to unbond. The downside to this method are the following:
Trading Fee
Slippage
