Hello and welcome to The Ether. Today is Monday, February 14th 2022. This episode of The Ether is brought to you by Talis. Talis Protocol is the NFT platform for independent artists on Terra. Talis helps to provide artists with the tools and resources needed to transition from traditional arts into the NFT world. With their V1 launch coming soon, Talis will be the place to see real world art reflected on Terra. Be sure to join their Telegram and follow Talis on Twitter for updates on their roadmap, validator, and other Talis news. Find your next favorite artist on talis.art. This episode of The Ether is also brought to you by WeFund. WeFund is a community crowdfunding cross-chain incubator on Terra, and it’s the first launchpad that implements a milestone funding release system to protect investors. All money raised for projects is deposited in Anchor Protocol and it’s refundable, and all decisions are based on community voting power. WeFund is community focused and designed to be a user friendly experience for both project creators and investors. Be sure to follow them on Twitter and join the Telegram for more information. Links are in the show notes and check them out online at wefund.app. TerraSpaces appreciates the support from all our sponsors. Today on The Ether we have the Galactic Punks Stader Stake+ AMA. Let’s take a listen.
Galactic Punks 2:01
Good evening, everyone. We should wait a couple minutes as we wait for our guests to join us.
I am going to allow myself a very quick sound check before we start. And now in today’s AMA, we will concentrate on the topic of LUNA staking, what to consider when you do it and what infrastructure you can use to maximize the staking rewards. And as you have already noticed, we will get much of that info straight from the source as we are joined by friends from Stader, a protocol aiming to optimize the staking experience on multiple proof-of-stake chains, including but not limited to Terra. And for today’s Spaces, I have prepared a few general questions that we can go through. But feel free to raise your hand and request to speak at any time. And to sweeten the deal off, we’ll be raffling off a punk to one AMA participant throughout. We will announce who has won it afterwards. And this way you can learn about LUNA staking and potentially win NFTs, it does not get much better than that. All right. If we could first maybe take just a little bit of time for introductions so everybody knows who they are listening to. I will start, I’m Karma and I work on building the Galactic DAO. One of the first proposals ever passed by the DAO was to start our own reliable low commission validator to help secure the Terra network. And as a result, we now do our best to bring relevant content to our stakers and expand the possibilities of staking with us. Here we are discussing now staking opportunities unlocked by Stader. And let’s continue introductions with my fellow punk Jack, joining us from the main GP account, and then our Stader guests, please.
Galactic Punks 3:41
Hi, everyone, I’m Jack, and I’m going to be moderating the Space today. If you have any questions close to the end of the Spaces, feel free to put your hand up and we’ll bring you up to ask your question.
Thanks guys. Hey, everyone, this is Amitej. I’m the co-founder and CEO of Stader. And my marketing head Dennis is also here.
Brilliant. We are going to move on. thank you so much for supporting our DAO validator and for taking the time to talk to us today. Let’s fully start. Now many of us stake our LUNA and up to recently, the only option to do so was directly in the LUNA station in the Terra Station in the stake dApp. Staking LUNA, you receive a particularly yield on LUNA, which currently hovers around 8%-10%, and it is paid to you in LUNA itself. And in addition to that in small amounts of various stablecoin. Seems pretty straightforward to me. But where does Stader fit into this? What does it offer? And let’s talk in general terms before we move to the new Stake+ feature.
Sure, Karma. First of all, thanks to you as well as the entire Galactic Punk DAO for hosting us for the first time, very excited to be here. To answer your question, I think most of the LUNAtics and most of the LUNA stakers do need to keep in mind that their staking rewards, unlike on other blockchains like Ethereum or Solana, the LUNA staking rewards are not as simple as the other chains. They are composed of, one, obviously LUNA, two, a lot of stablecoins. It’s in fact 40%-50%, and sometimes it varies between 30% and 50% of actual LUNA staking rewards are given out in stablecoins, majority being UST, and there are some other currency denominations like KRT, etcetera. And on top of this, which is very unique to the Cosmos ecosystem, are the potentially tens and hundreds of protocol airdrops that are given to LUNA stakers. So now, what does it mean for an average staker who is taking LUNA with any of the validators, right.
One, let’s actually run through the journey of a simple delegator. He needs to find the best possible validator based on the performance history as well as the returns generated and the commissions. Second one is once he decides who to stake with, he needs to also consider the element of decentralization. If the delegator is staking to more validators, he is in a nutshell, essentially decentralizing the network, right. The third thing that a delegator needs to consider is once he stakes his capital or LUNA, now he needs to obviously constantly monitor the validator, try and find out whether he’s generating the rewards properly, and he is not going out of the network, or not getting jailed, or not getting slashed. And at the same time, keep track of all the earnings and rewards that he’s making. And then find ways and means to either restake his rewards or reinvest his rewards, right. These are the complexities that a typical delegator has to go through when he is staking LUNA on Terra Station.
Where does Stader fit in? It completely abstracts the entire three elements of the value chain. One, by curating and creating the best possible validators, two, automatically rebalancing the stake across validators based on their performance, three, by picking up all of these rewards, claiming all of these rewards, including the stable rewards, without any extra expense for the delegator, converting all the stable rewards to LUNA and restaking them, and also providing an option for the delegators to reinvest their rewards or retain their rewards as is as LUNA, so that they can probably sell them for stablecoin and use it as a working capital income. Now, that’s the first product that we have. The second product is a significant improvement on top of this, which is the LunaX, where we even abstract out the choice of validators but issue a liquid staking token by this kind of an autocompounding on top of the LUNA staking rewards called LunaX that can be leveraged across DeFi protocols for taking out loans, or for providing liquidity, while at the same time enjoying all the airdrops that are given to the LUNA stakers. That’s the second solution that we have on the Terra network. Now, before I go into Stake+, are there any other questions that you wanted to ask, Karma, on general Stader propositions?
Well, first, let me apologize for cutting you off earlier. I am informed I just talked straight through you. This was just due to Twitter Spaces. I generally didn’t hear anything at all and thought just, well, you introduce yourself very briefly, I will carry on. [chuckle] So apologize for that. Yeah, I rejoined now.
I took the liberty to talk a bit more when you gave the second cue. So no worries on that. Please go ahead.
Well, brilliant. Well, please correct me if you have talked about this while I was rejoining to fix this. But when we talk about staking, we often talk about decentralization. Terra network has 130 active validators, and if their voting power/amount of LUNA was distributed equally, it would be around 0.7%. But that is not the case. Some of top validators have 10 times that power. And part of the problem is that new users don’t research validators and automatically stake with the bigger ones. Now, I just wanted to reiterate how does Stader work in this context and how it’s promoting decentralization of the network.
Yeah, so that’s a typical problem that majority of the delegators face. In fact, the most asked question on Terra admin groups is which validator to pick, right. It’s a general human tendency, right, when we go to a big… Even if you’re trying to shop for something, right, we generally pick the well known brands, irrespective of the quality that the brands offer, or the underlying texture, or color, or something of the brand, right. So that’s a typical tendency of most of the delegators to choose the top five validators because it’s a group thing, most of the people trust the validators that most others have trusted, right. So that’s a typical tendency. And we try to break down that tendency by creating these validator buckets that curate small yet well performing validators and create a basket out of those. Because we’re creating this basket, the smart contract kind of delegates to the underlying validators across the basket and spreads the stake equally across these validators, hence supporting the decentralization of the Terra blockchain.
Absolutely brilliant. And now these were my two questions to kick things off, and we can now fully move on to the Stake+ feature, which is obviously something that lets us expand on everything we’ve already touched upon.
Amazing, awesome. So let me give you a context and background about Stake+. We do have three different types of validator pools on the Stake Pools, but those validator pools currently are limited in size to about 25 or 30. We are constantly adding more and more validators. But at the same time, Stake+ has a limitation in terms of offering the choice to a delegator to choose his own validator. That is the limitation that stake plus has today. If you’re a delegator, and you’re interested in choosing GP validator alone, yet get the benefits of Stader platform like autocompounding LUNA, conversion of stables to LUNA, and restaking, and also having the choice of claiming all the airdrops under one dashboard, it’s not possible today with Stake Pool solution. Hence, we came up with this new product called Stake+, which allows the choice to a delegator to choose his own validator yet enjoy all the benefits of Stake Pools. That is the genesis of this idea. How will this promote decentralization? Obviously, instead of choosing only the set of 20, 25 validators to delegate to on Stake Plus, now a delegator can actually select any validator that he deems fit for his purpose. Initially, Stake+ will have six active community validators including Galactic Punks, and in the future we plan to expand this Stake+ offering to almost all potential good-performing validators out there on Terra network.
That is utterly brilliant and I am personally extremely excited about the Stake+. I have to admit I have never staked with Stader because the basket solution of the validators never truly spoke to me. But Stake+ is something I will certainly consider. And just to reiterate, for people who have just joined us and haven’t been here from the start, the new Stake+ feature will basically be the best of both worlds, we can stake with validator of our choice, enjoy unique rewards, for example, if you want to stake with the GP validator, staking through Stake+ will allow you to participate in our Punk raffles, but at the same time, you enjoy the perks that Stader allows you. So the LUNA is autocompounded and the stablecoin rewards that we get are autoconverted too. Now maybe just before we move on to some questions and further issues, what does that cost the customer? What kind of fee does Stader take for the use of the features? Maybe let’s talk about that a bit.
Sure, Karma. So Stader charges only 3% of the staking rewards, which is same as the fee that we charge for Stake Pools.
That is brilliant. So there is no additional charge for using the Stake+ feature, just however you choose to use Stader, the fees the same?
Yes. So whether the delegator chooses to use Stake Pools, or he chooses to use Stake+, the fee is the same. Obviously the validator commission is dependent on how much the individual validators charge. But that’s not something that we are imposing on the validators.
Brilliant. Now, the next step, I think, would be to go through just the very basic questions and the different scenarios of how people can use the feature of Stake+. So when exactly is it available? How and what are the next steps for the average user, depending on if they already staked with Stader, or if they haven’t ever used it before?
Gotcha. So there are two questions that you asked, right? First one is when is Stake+ going to go live? So we are in the final testing of the Stake+ contract and UI. We plan to launch it as early as Wednesday, which is in about a couple of days. And then all the preparations are going towards that launch date. Unfortunately, a couple of our core devs are down with COVID. It might be delayed by a day or two. But it should certainly happen anytime this week, after Wednesday.
All right. So that was the initial question. And now just moving on. The further question was, what would be the next steps for the average user? So for example, I personally have never staked with Stader yet. How would I need to proceed to do so? Do I need to unstake my LUNA from the Terra Station or is there a way to migrate like within the Terra Station when we redelegate to another validator?
Gotcha. I wish the latter statement that you made was absolutely true. But unfortunately, since Stader’s Stake+ as well as the Stake Pools are smart contracts, one needs to actually undelegate from the Terra Station and come and delegate it on our smart contract. The way it is going to work is if you hold liquid LUNA, that’s great. You just go to staterlabs.com, select Stake+, we are going to have a simple UI for Stake+ on Stader dApp. And you just pick GP as your validator and stake with GP smart contract there and that’s it. Your LUNA is staked with Galactic Punk and it is automatically earning staking rewards and Stader smart contract is actually converting all your stables to LUNA and restaking that. That’s one. The second one is since this is a smart contract, which is sitting outside the Terra Station, it is technically not possible to read delegate to Stake+, that’s a limitation we all have to live with.
Galactic Punks 17:49
I also have a quick question. Let’s say I wanted to delegate to multiple validators. So let’s say, I wanted to put 25% of my LUNA with the Galactic Punks validator and then 75% with Orbital Command, is there a way to delegate that all at once and then split it to my choosing between validators? Or is it a automatic contract that will split it evenly?
Okay, so the permutations and combinations of what you have mentioned are very, very personal to people, right. So right now, we don’t have any automation built in. But in the future, we can definitely have such automations where the user selects a basket of validators and then allocates a percentage split across these validators. So all those automations can be built in the future. But at the moment, you have to manually delegate to each of the validator contracts.
Galactic Punks 18:56
Amazing. Yeah, I think one thing that all holders want to be able to do is just make their lives easier. And automation is obviously key to doing so. So I think that’d be quite an exciting feature to see in the future.
Yeah, yep. That makes a lot of sense.
Cheers. Brilliant. I wonder just very quickly, maybe I missed that, but does the same apply when you want to restake or unstake within the Stader platform? Let’s say if I were already a staker with Stader, I was taking with one of the baskets of validators, and now I want to split my LUNA across different Stake+ pools. Can I do this immediately? Or are there some lockups or some unstaking times as well?
Gotcha. So as I mentioned earlier, each of the smart contracts that we have for Stader is a separate smart contract implementation. So users need to undelegate from Stake Pools and come back and delegate that to Stake+. So it cannot be redelegated automatically. So that’s another limitation. Yeah, so what was your second question, Karma?
It was basically just if within the platform if I also have to wait the 21 days undelegation period, the way I would have to do it on Terra Station. But I think that partially already answers my question. And another one would be once Stake+ goes live, let’s say I stake everything into one pool with a particular validator. So, do I understand correctly that I can’t then redelegate everything to another Stake+ validator? This is again, bound by the unsticking period? All right, all clear.
Yes, yes, just as a future proofing mechanism, we will introduce a secondary validator for every Stake+ pool. In case the primary validator goes down, the contract can immediately redelegate to the other validator. This is as a backup for the original validator in the Stake+.
That is brilliant. Now, I think Miral Gandhi, you have raised your hand a lot of times and I have made you a speaker now. Would you like to ask a question now?
Miral Gandhi 21:23
Yeah. Hi, Amitej. I’ve been in Stader since it opened up back in last year. So I really liked this Stake Pools. I use the Stake Pools more than I use the liquid staking. But for the Galactic Punk one, there’s gonna be a new one called Stake+ now after Blue Chip, Community and Airdrop Plus?
Yeah. So Stake+ will be a separate product, just like how you have two different UIs for liquid staking and Stake Pulls, we’ll have a third UI for Stake+. And Stake+ will offer the flexibility to just delegate to one single validator of your own choice.
Miral Gandhi 22:06
Oh, okay, that makes sense. Yeah. That’s awesome.
Yet have all the benefits.
Miral Gandhi 22:11
Yeah. I just like Stader, it’s so much easier to stake my LUNA in there. So yeah.
Amazing. Thanks a lot, Miral, thanks for your continued support.
Miral Gandhi 22:21
Galactic Punks 22:24
We also have psyduck, who has requested to speak. If you have a question, feel free to ask.
Yeah, I’d just like to ask about the… If you use Stake+ to delegate to Galactic Punks validator that you would be entered into a raffle. So I assume that Stader in the backend has a wallet that’s staking to Galactic Punks in the backend. So how would you determine who gets that Galactic Punk afterwards if the wallet is chosen in the raffle?
Hi psyduck, can you repeat your question? You were a bit cutting out.
Basically, I was wondering how are you going to determine who gets that Galactic Punk if Stader Labs’ wallet wins the raffle?
Gotcha, gotcha. So this will be a little different. So Stader Labs will not have a wallet, it will have a contract that is holding all the delegations from several delegators, right. So Galactic Punks and… At Stader we will expose the wallet addresses that are delegating with Stader smart contract, and Galactic Punk can apply their criteria to select the wallet address that wins the raffle.
Galactic Punks 23:47
Sorry, psyduck, just to go into some more detail for that. If you want to enter the raffle for our validator, you have to stake a minimum of 10 LUNA. Each 10 LUNA counts as one ticket, and then we’re able to run basically like a lottery picker that then selects one of those random tickets and then reveals a wallet address that we can airdrop the Galactic Punk to.
Thanks, perfectly clear.
Galactic Punks 24:17
Yeah, that is wonderful. And just to toot our own horn here a bit, the Galactic Punks validator, we have raffled off at least one punk per week, sometimes two, even, depending on the royalties that we rake in ever since we have launched the validator. As per proposal, it was actually the first proposal that the DAO has ever passed, and our most voted on, still, so just amazing that we continue to deliver the educational content and deliver the amazing raffles that we can run. And thank you Stader as well for including us as basically one of the first validators with the Stake+, so people can now actually appreciate the autocompounding of rewards and everything without having to commit LUNA to just the baskets.
Yep, excited to have you guys join the first batch. I think what you’re doing to the community is also great.
Thank you so much. Now I wonder if we have any other questions for now or if we should move on to some of the other ones that I have prepared.
Galactic Punks 25:21
Questions are clear at the moment.
Well, brilliant. In that case, I personally think that the Stake+ is now clear, at least to me. I have unstaked parts of my LUNA from the Terra Station, and I will certainly be using it as soon as it is available. I might have to wait now because of the 21 days unstaking period. But we could move on to some additional questions that I found very interesting. Now shout out to Orbital Command, they have had Stader and you of course on their AMA just a few days ago. And you have discussed something incredibly interesting, which was the degen vaults. And that was supposed to be a new feature coming to Stader and allowing you to use the liquid staking and LunaX in some new innovative ways. Would you like to talk about this or did I front run you on this one?
Sure, sure. Absolutely. We’d love to chat about that. So I think the degen vaults, like I mentioned in the previous AMA, the inspiration for degen vaults was one of the very active community members, like some of you out here, his name is Casey, not sure if he is there. And then there are a few protocols on Ethereum called Barnbridge and Saffron Finance. So it’s a mixture of liquid staking and yield tranching protocols that inspired the degen vaults concept. Essentially the background for the concept is there are a few LUNA holders or any POS asset holders who actually have different risk preferences. What that means is as a LUNA holder, I might be happy with generating 20% yields on my LUNA. But there are a few other LUNA holders who want to maximize their yield, right. They don’t mind taking significant amount of risks for 100% or 200% APR, right. So now how do we actually bring all of these users together so that they can collectively create such structured products? For example, in traditional financial world, especially for large funds and banking institutions, such collateralized yield tranching, or debt tranching protocols or debt tranching products are quite common. But in DeFi space, this is a very nascent concept and some of the protocols on Ethereum have tried doing it.
So we have applied that for liquid staking. What that means is whoever is holding LunaX, they’ll come to a vault that is created by Stader, and they will deposit LunaX into that vault. As a simple example, when they’re depositing LunaX they will select senior tranche or a junior tranche as their risk preferrence. Senior tranche means lowest risk, but they probably make a guaranteed 10% APR or 20% APR or 5% APR depending on the market conditions, on top of their staking rewards and airdrops, right. Then the rest of the stakeholders who select junior tranche, which means the highest risk taker tranche, they will be able to maximize their returns in the case the vault performs extremely well, while the junior tranche holders end up subsidizing the senior tranche holders with their use as well in the event the market or the strategies don’t perform very well. I know that’s a lot to chew, but I would appreciate if you have any questions on this before I move on to how this entire mechanism works.
Well, to be honest, if I am honest, I will need some more time to chew on this. I do however, appreciate that we have Rebel Defi here with us from Orbital Command. So I will also appreciate his insights if he has some. I am redelegating to the people I know have spent much more time on this than I ever have.
Rebel Defi 29:44
Thanks, karma. We’ve got…
Rebel Defi 29:47
Hi there, how you doing? danku’s here as well. So there’s much bigger brains than I, but I’m just thinking about these volts, is it fair to say that you’re going to be using other protocols in conjunction with these vaults? Is that right?
Rebel Defi 30:04
Can you talk about… Sorry.
Why don’t you go ahead?
Rebel Defi 30:09
I was just… So I’m assuming, is this Mirror and Edge? Or are there any others that you can tell us about?
Sure. So, there will be a combination of protocols. In fact, let me start with the end state of how we are imagining degen vaults, right. So consider degen vaults as a platform that is going to take LunaX as deposit, and in the future, potentially a combination of LUNA, LunaX, UST as deposits, and then there will be probably 20, 30, or maybe 40 smart contracts, and one or two strategies associated with each smart contract. And those strategies can be built by any of you guys here, who have the inclination and the willpower to build strategies, and obviously also set a commission rate for building these strategies and operating these strategies. So we kind of think these degen vaults as a platform in itself, where 40, 50 or uncountable number of vaults with strategies exist, that are constantly taking LunaX as deposit, deploying LunaX on Anchor, Mars, Mirror, Edge, Sigma, all the potential possibilities across Terra ecosystem today and potentially cross-chain protocols in the future as well. And then, on top of the leveraged asset, build strategies like put 50% of LunaX that is deposited in a vault on Anchor Protocol, take out a loan and then put a portion of that UST on Mirror, or on LUNA-UST pool that has the maximum yield on Terra Station, and a bunch of other strategies, right. Now Rebel, you can design a strategy that you think has the most appeal, and you can set a commission for yourself. And then we can probably gamify the entire platform saying like danku’s Vault, or Rebel’s Vault, or Dennis’s Vault, right. So all of these are possibilities in the future.
Rebel Defi 32:26
That sounds super exciting. Yeah. I would love to get involved with that. Sounds like a lot of fun.
Absolutely. It’s like Yearn Finance on top of LunaX.
Absolutely brilliant. And Rebel, free to shill the Spaces afterwards right now for people who want to go a bit deeper on various strategies with LunaX.
Rebel Defi 32:49
Awesome, Karma. Thank you very much. Yeah, so Orbital Command are going to be hosting a Space in about 20 minutes after this one finishes, about half past seven UTC. And we’re gonna be talking to Edge Protocol, because apparently they’re going live tomorrow. And I know, Amit, you’ve been working really closely with Edge. Can you talk a little bit about your relationship with them or is that kind of private and confidential?
I think it’s the same relationship that we hold with any protocol on the Terra ecosystem. I am good friends with the founder. And since we see a lot of synergies for collaboration between Stader and Edge, we have been helping each other. That’s all on the relationship, beyond that there is no other relationship. Obviously I’m very good friends with…
Rebel Defi 33:45
Awesome, thank you very much for that. It was quite interesting, actually. I met Jack and Karma in person. And we were out with a bunch of UK LUNAtics on Friday. And I can remember speaking to a lot of people. Well, all we talked about was Terra. But when we talked about Stader, a lot of us are saying like we’ve been sleeping on it. We thought, what was the point of using Stader to delegate when we can just delegate ourselves on Terra Station. But you’ve been coming out not just with the Stake Pools, which I think is kind of cool, but LunaX is epic. And then Stake+ is such an advancement on the Stake Pools. You just getting so much work done and turning Stader into something that’s kind of cool, into something that is straight up amazing. So we were all saying that we’re actually going to get a lot more involved with staking via Stader. So just like to say congratulations on all your hard work.
Yeah, absolutely. I can just echo that. I was personally very skeptical. I think many LUNAtics are very cautious, I would say. If something is there offered by the TFL, by the Terra Station itslef, then we are very, very hesitant to switch to another provider, to another service. But I think many people are now getting convinced by the additional opportunities that Stader may provide. Now, Jack, have I seen correctly that there have been some questions?
Galactic Punks 35:17
Yeah, so Pbr has just put his hand up and request to speak. So if you have a question, feel free to ask.
Yeah, what’s good? I was curious, how do you evaluate a good performing validator to pick who I should stake with and not stake with? What do I look for?
Gotcha. It’s a very interesting question. So the validators have three different criteria. One, is their actual network performance, which includes their uptime, and the oracle commits. Two, is their financial parameters, like the commissions that they have set, and the maximum commission and the daily max commission changes that they have set. And the third one is more of a qualitative criteria, like the quality of their network, where are they hosting their validator, etcetera. And beyond these, obviously, there are certain quality parameters like how active they are with the community, what kind of community engagement work they are doing, and all of that, right. So these are the four parameters we typically evaluate. And the most important one, obviously, for the delegators who are primarily interested in financial returns is the network performance of the validators. For that what we have built ourselves on Terra is a live APR tracking tool for the validators. At this stage, we can actually tell which validator has given what amount of returns over the past few days. So that’s a tool that we have built internally. Obviously, we are going to expose that tool to the entire community.
Excellent. Thank you very much, that definitely answered my question. Appreciate it.
Thank you, Pbr.
Galactic Punks 37:10
I’ve also just seen Swiss who’s popped up to speak as well. Just a shout out to Swiss actually, he is constantly active in the Galactic Punks Discord nebulas to the DAO, and has been producing great work and is actually spoken quite a lot about Stader. So I’m really interested to see what his question is.
Hey, Swiss, how are you?
Hey, guys, how’s it going? And thanks for the shoutout. Appreciate that. So I just want to touch on a bit about decentralization. So do you think that the voting power of the six approved validators for stake plus will rise because of the feature? And when can we expect users to see more validators get approved over time? Because right now, we have just the six that are approved initially. So do you also think that a lot of the LUNA that’s currently being staked in the current staking pools between the 25, 30 validators, do you believe that a lot of that LUNA will start to migrate over to the Stake+ feature? I just want to kind of get your thoughts on that. Thanks.
Gotcha. So to your first question. So this is the first batch of validators. Obviously, we want to give back to the validators who have been actively serving the community. Hence, you see a lot of community validators that are active in the in the first set. Beyond this, obviously, our plan is to expand this offering to as many validators as operationally feasible for us in the short term. And obviously, in the long term, or, in fact, even in the midterm, we want to expand this to the 130 validators. But there’s going to be a phased rollout as we need to scale our operations team as well to run some of the off chain operations like swapping the rewards, etcetera. Just to answer your question, obviously, this won’t be limited to the first six validators. It’ll be expanded to the other set of validators pretty soon, right. The second question on whether we see a lot of LUNA moving from Stake Pools to Stake+, we do potentially see some amount of LUNA moving to Stake+ validators. Having said that, there are decent number of delegators who don’t actually discern between the validators. Well, it’s actually not that great for the network, but that’s the reality, right. A lot of people are just interested in staking and making passive income. It’s our job to actually educate some of these guys, so that they realize the benefits of staking with active validators and at the same time promoting decentralization. So in the short term, probably a good amount of stake will move to Stake+, but in the long term it depends on how we educate the community.
So yeah, thanks for answering. So I’ve actually made a couple of posts about this and just kind of going through the six validators and what they provide to the table as to benefits and kind of just improving the decentralization of the network. So I’m personally really excited for the Stake+ feature to go live because I’m also kind of planning on making another post on how it works and how to get started with that. I’ve kind of been working with the Galactic Punks Discord as well as Karma to kind of get this rolling. So when this does get live sometime this week, you can definitely expect something to come from me. Thanks.
Amazing. Look forward to it.
Galactic Punks 40:41
Thanks, Swiss. We’ve also had DeFi Zealot who’s come up to ask a question as well. So feel free to ask away.
Hey, thanks a lot, Amit, thank you for coming up here and engaging us directly to answer questions. I have a point of clarification on what you had said. So you’re talking about these strategies that different degens in the community can come and build vaults. Now, what’s that process look like? Can you elaborate a little bit? Is there going to be a UI that you build for Cephii, and Rebel, and danku, all of these guys to go and kind of build their own strategy by building blocks? Or is it that they provide their ideas and your developers are building it? Who’s the person that’s building it? Can you go into a little bit more detail on how you see that working out?
Sure, absolutely. So just to give you the construct of how are you thinking about the vaults, so the strategist needs to tell certain parameters, for example, what is the percentage LTV that needs to be taken as a loan on LunaX, then what is the asset that should be borrowed, and obviously, the parameters around the time locks. Do the depositors need to lock LunaX for one month, three months, or a year, right. Beyond these, they need to say what percentage of the borrowed asset needs to be deposited on let’s say, protocol one, protocol two, protocol three. And then what should be the intermediate steps during this time lock period. So this is put up as a proposal, then obviously, there will be a Stader a community that has to vote on the proposal. As soon as the proposal is approved by the community, then obviously, the community developers that are working with the state or DAO are going to create this vault. And then the operations of the vault, like putting LunaX on Anchor or Mirror, in the beginning they will be operated through a multisig, and in the future, most of the vault operations will be automated. Does that clarify your question?
Yeah. Excellent. Thank you so much for clarifying that. I was a little bit confused on what the steps are, and really glad to hear that it’s a community operated strategy, and really excited to see what comes out of that.
Galactic Punks 43:36
I think we have one more question. I’m just going to invite NPro up.
Hey, just wanted to sort of follow up on the vaults point. Is it a little bit like a protocol called Donkey Finance, which has different strategies across various chains? Is that the kind of thing you guys have in mind? Because that’s quite helpful for some strategies across all the chains. If you haven’t checked it out, it’s worth checking out. They do something slightly similar where a specific DeFi person, so in our case it will be Rebel for example, has a strategy and you just deposit the relevant asset that’s needed for that strategy and they provide an overview of what the strategy is and then just farm it for you for a fee.
Gotcha. So this will be similar to Yearn Finance, right. Every Yearn Finance vault has a strategist and the strategist take a commission out of the strategy.
Yeah, worth checking out Donkey Finance anyway.
Gotcha. I will. This is on which blockchain?
So donkey is across various blockchain. So for each chain, it’ll have a couple of different strategies. So I use it on Avalanche and on Fantom, but it’s also got a smart chain and all sorts of stuff. So it sounded like it was kind of aligned with what you guys are trying to achieve cross-chain So I thought that might be an inspiration. But have a look. See what you think. Because it does have some interesting stuff on it.
Gotcha. Gotcha. Makes sense.
Galactic Punks 45:05
Yeah. Thanks for your questions, everyone. I think we’re gonna look at wrapping things up now. As we mentioned, at the start of the session, we’re going to be giving away one Galactic Punk. We’ve taken a snapshot of everyone in the Spaces. And we’ll just run off a random generator to make sure we pick someone. And after Spaces, we’ll then tweet out the winner. And you’ll just have to send us a DM to the main account and we will give to you your Galactic Punk.
Now, brilliant. I’m going to say a big thank you from me as well in the name of the Galactic DAO and all listeners. Amit, it was an absolute joy to discuss and learn together today. And I’m pretty sure everybody really appreciates the opportunity to ask any kind of question directly from people who build these protocols. It’s something that I think we often don’t appreciate nearly enough. And everybody if you are interested in learning a bit more about LunaX, about some further degening strategies, again, a warm welcome and an invitation to the next Spaces hosted by the Orbital Command, shout out to the fellow community validator, and to Rebel Defi and Zion for always delivering stellar content. Thank you all again. Amit, feel free to say thank you or goodbye to everybody as well.
Yep. Thanks a lot, everybody. First of all, thanks to you guys, Karma and the entire Galactic DAO for hosting us. It’s been amazing talking to you, and wonderful set of questions. And thanks to everybody for tuning in today. And then for asking all brilliant questions. It just not only helps you but also the entire community and listeners to understand and learn more about the protocols. Thanks a lot for tuning in.
And extravaganza of emojis. Twitter should add some more already. Now, again, thank you everybody and have a lovely evening, morning or whatever. Bye bye and hear you soon.
Galactic Punks 47:07
Thank you, everyone.
Thanks for checking out another episode of The Ether. That was the Galactic Punks’ Stader Labs Stake+ AMA. Recorded on Monday, February 14th 2022. This episode of The Ether was brought to you by Luart. Luart is the first gamified NFT platform built on the Terra network. Luart provides a seamless minting and trading experience all while earning you rewards just for being a user. Be sure to follow them on Twitter and join the community in the Discord server for the most up to date news and announcements regarding all the hot new NFT launches, platform upgrades, and new projects hitting the secondary marketplace. Are you ready to #PutYourHelmetOn and join the movement? Find out more luart.io. This episode of The Ether was also brought to you by Orbital Command, a community validator on Terra dedicated to educating, expanding, and promoting the LUNAtic community. Take advantage of their Terra Luna Intel Report on Telegram which brings you the hottest news and updates on all things Terra each and every day. Find it using the link in the show notes. You can also support their community efforts by considering them next time you’re delegating or redelegating your LUNA. Find out more at orbitalcommand.io. TerraSpaces appreciates the support from all our sponsors. For terraspaces.org, I’m Finn. Thanks for listening.