Stader is the dApp that helps to automatically compound user's earning from staking. The smart contract mint you tokenX after you stake token, so tokenX represents staked assets and growth in value as rewards. For example, users can stake their MATIC on Polygon or Ethereum, however, there is a limit for Polygon staking (1.5m MATIC) as Stader stake all matic on Ethereum, as a result, they pay for bridge on their own. After staking users get MaticX, this token will increase in value as staking rewards accrue. Their formula for the calculation exchange rate is Total Value of Staked Matic / Total Supply of MaticX. I suppose this is really good instrument for stakers, as they shouldn't care about restaking their rewards, however, Stader will ask for 10% fee from your earnings.
I give this project 4 starts because of their centralization issue. They have multisig that has a lot of power, for instance, PauseContract (Pause deposits, withdrawals, claims. Only meant to be used in critical situations). I don't like this about this project, because this multisig gives them a lot of power. Show Less
