Hello to the Secret community! Today we're featuring a new product with the potential to scale Secret DeFi dramatically.
Shade Protocol is bringing privacy-preserving SNIP-23 liquid staking derivatives to Secret Network, enabling users to secure Secret Network and other application protocols without exposing their privacy. The first staking derivative launched by Shade Protocol is stkd-SCRT: a SCRT staking derivative token powering Secret DeFi on Secret Network.
A liquid staking derivative is a token that is a claim on underlying staked collateral and accrued staking rewards. Staking derivatives unlock immense amounts of liquidity and trading volume by empowering users to enter and exit staked positions without needing to incur a 21 day unbonding period. Additionally, stkd-SCRT brings additional yield opportunities. Users can liquidity provide with stkd-SCRT and simultaneously earn SCRT staking rewards (~23% APR), liquidity providing rewards, and trading fees.
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!
Shade staking derivatives (denominated as “stkd” pronounced “staked”) such as stkd-SCRT empower the following:
- Private staking
- Automatic compounded staking rewards
- Ability to instantly exit a staking position
- LP opportunities
- Reduction of validator risk by automatically spreading delegations out to multiple performant validators
The initial Shade staking derivative product (stkd-SCRT) is one of Secret Network’s first staking derivative live on mainnet.
stkd-SCRT is a Shade staking derivative that represents staked SCRT on Secret Network, combining the cumulative value of deposited SCRT collateral with compounded staking rewards via the staking derivative contract. stkd-SCRT tokens are minted via deposits of SCRT.
When stkd-SCRT are redeemed, they are burned in return for the originally deposited SCRT and respective accumulated staking rewards after a 21 day unbonding period. With stkd-SCRT, a percentage of staking revenue goes directly back to Shade stakers and the ShadeDAO — creating an additional sustainable revenue stream for SHD holders!
Shade Staking derivatives, starting with stkd-SCRT, are partnering with Sienna (a DEX / AMM) to create a place for users to liquidity provide their staking derivative tokens while also passively earning staking rewards. Users can now directly acquire stkd-SCRT without having to mint it - empowering them to seamlessly enter and exit a staking position!
Liquidity Provide stkd-SCRT
Currently on SiennaSwap there are multiple ways to earn both staking rewards and LP rewards using stkd-SCRT for liquidity providing:
- sSCRT / stkd-SCRT (23% APR on stkd-SCRT + SHD rewards + trading fees)
- Sienna / stkd-SCRT (23% APR on stkd-SCRT + Sienna rewards + trading fees)
Earn LP rewards, trading fees, and staking rewards (from stkd-SCRT) - amounting to an excellent yield for anyone interested in participating in Secret DeFi!
Shade staking derivatives apply a 0.20% fee on minting, and a 0.05% fee on redemption. The ShadeDAO will use the fee revenue stream to help generate more liquidity on DEXs for stkd-SCRT pairs, creating sustainable protocol owned stability and a better user experience. With the intentional design of the feedback mechanism, by purchasing or creating Shade liquid staking derivatives you are helping grow an entire ecosystem of privacy-preserving DeFi products on Secret Network!
Shade Staking Roadmap
Q1 2022: stkd-SCRT
Q2 2022: stkd-SHD
Q3 2022: integrate with lending products
Q4 2022: governance + cross-chain staking derivative products
Shade is made up of interconnected privacy-preserving DeFi apps built on Secret Network. Among their flagship products is Silk, an algorithmic stablecoin that hides transactional data by default. The same can still be revealed when there is mutual trust among the involved parties. As well as Silk, Shade is also looking into creating unique synthetic assets, which also hide transactional data by default.
Learn more about Shade Protocol:
The launch of stkd-SCRT by Shade Protocol is right in line with the reveal of Shockwave in early January of 2022. With more products being funded and built, more creators launching on Secret Network, and more supporters and partners than ever helping to ensure our global growth, the future has never been brighter for Web3 privacy.
If you’re a developer, you can also read through our latest announcements re: the new $225M Secret Ecosystem Fund, which contain details on how to connect with the SCRT Labs team and the rest of our developer ecosystem. Additionally, check out Secret Network grants and get started building today!
If you’re anyone who is passionate about ensuring Web3 users have the data privacy protections they need and deserve, become a Secret Agent. It is our mission to make sure the decentralized web we’re building is one that truly empowers - and one that is accessible to all.
Thank you for your support - the Shockwave is just starting! 🤫