Project Introduction:
StakeStone is a liquid staking derivative basket (LSDb) token backed by ETH staking rewards. It integrates mainstream staking pools, Re-Stake, and LSD blue-chip DeFi strategies to provide a highly adaptable staking reward asset for all protocols. StakeStone aims to provide liquidity for LSD and meet the needs of decentralized finance (DeFi) ecosystems.
Tags: DeFi, LSD
Ecosystem: Ethereum, Manta
Founded: 2023
Location: Singapore
Website: https://stakestone.io/
Twitter: https://x.com/Stake_Stone
Team Members:
Charles K: Co-founder of StakeStone.
Rose Li: CSO of StakeStone, graduated from the University of Sydney, Australia.
Ivan K: Chief Marketing Officer of StakeStone.
Chris Core: Contributor to StakeStone.
Funding Journey:
March 25, 2024: OKX Ventures announced an investment in StakeStone, a full-chain LST protocol, and established a strategic partnership.
November 11, 2024: StakeStone completed a $22 million funding round led by Polychain Capital. The round also included strategic investments from Binance Labs and OKX Ventures. The seed round was led by SevenX, with participation from Nomad Capital, HashKey Capital, HashKey Cloud, Amber Group, Coinsummer, Bankless Ventures, DAO5, Symbolic Capital, Arcane Group, Quantstamp, and others. This funding will drive StakeStone's accelerated growth, expand its product services, and strengthen its influence in key markets.
Advantages of StakeStone:
StakeStone aims to provide innovative liquid staking solutions for the DeFi ecosystem. By introducing the concept of yield-bearing ETH, StakeStone allows users to enjoy staking rewards while maintaining asset liquidity. Its cross-chain compatibility and automatic yield optimization mechanism (OPAP) further enhance its potential in a multi-chain ecosystem, offering users an efficient, flexible, and yield-maximizing staking platform.
StakeStone's core strengths lie in its innovative technical architecture and user-centric design philosophy. By providing non-custodial and transparent liquid staking services, StakeStone ensures the security of user funds and the transparency of rewards. Its STONE token, built on LayerZero, achieves cross-chain liquidity, allowing assets to flow freely between different blockchain networks. This not only opens up broader market opportunities for users but also simplifies the integration process for Layer2 developers.
In terms of operation, StakeStone allows users to stake ETH or other supported assets into its protocol. These assets are then converted into corresponding yield-bearing ETH or other forms of LSTs, representing users' staked assets and their rights to rewards. Through the OPAP mechanism, StakeStone can automatically adjust and optimize the underlying asset allocation in response to market changes and staking pool performance, ensuring users receive the best possible staking rewards. The reward distribution mechanism ensures that staking rewards (including transaction fees, governance rewards, etc.) are regularly distributed to STONE holders, either through direct token allocation or by increasing the value of STONE.
In summary, StakeStone's innovative solutions and technical advantages not only address the issue of asset liquidity loss during crypto asset staking but also provide an efficient solution for cross-chain asset management, significantly advancing the development of DeFi and cross-chain liquidity.
StakeStone's Whitepaper Release:
StakeStone has officially released its whitepaper, which states that StakeStone is a decentralized adaptive full-chain liquidity infrastructure. The protocol introduces STONE (yield-bearing ETH), SBTC, and STONEBTC (full-chain liquidity BTC and yield-bearing BTC), as well as LiquidityPad, enabling users to unlock full-chain liquidity while earning optimized and sustainable returns.
StakeStone's governance token, STO, is responsible for coordinating all value flows across the chain and achieving decentralized governance of the protocol. StakeStone adopts a voting token model (veSTO) as the foundation of its governance system. By locking STO tokens, holders can obtain veSTO. Additionally, StakeStone will implement a multi-burn mechanism.
How Does StakeStone Stand Out in the Competitive Liquidity Field?
LRTs are a staking pool protocol primarily offering core staking services. In contrast, StakeStone positions itself as a liquidity asset protocol, focusing on issuing liquidity assets from day one—a significant difference.
For StakeStone, staking services are a means to help users cover Ethereum's risk-free yields. We collaborate with staking service providers like InfStones and StakeFish, but StakeStone itself is not a staking service provider. I believe that even LRs have weaker staking capabilities compared to specialized staking service providers.
As a liquidity asset protocol, several conditions must be met: First, assets must be transparent to encourage users to deposit. Second, assets must have real liquidity, allowing users to deposit or withdraw at any time.
Overall, StakeStone has significant advantages in asset transparency, liquidity, and composability. Every asset in its pool is highly transparent. StakeStone ensures that assets have real liquidity, enabling users to deposit or withdraw at any time. Additionally, composability allows STONE to be easily integrated into various DeFi protocols, offering users more diversified application choices.
What Other Utilities Does StakeStone's Token Have Besides Governance?
We allow changes to the underlying assets, but the process is entirely decentralized and requires the consent of LPs. We cannot arbitrarily change the underlying assets. STONE holders can participate in this decentralized governance mechanism.
Regarding the underlying assets, StakeStone will, under controllable risk or risk-free conditions, strive to allocate more competitive underlying assets. STONE continuously captures and adjusts the underlying assets based on yield, with the frequency of adjustments related to the emergence of new underlying assets. Currently, major underlying assets typically appear once every quarter to half a year. I believe StakeStone is more akin to a yield-bearing ETH version of MakerDAO.
Project Summary:
The LRT project, through its carefully designed high-reward incentive strategy, successfully attracted a large amount of arbitrage capital to purchase PT products on the Pendle platform. This artificially created boom is about to face a significant turning point. These incentives led some users to sell their rights tokens at a discount in exchange for more YT shares, thereby increasing the annualized yield of PTs.
However, while this short-term capital aggregation may seem attractive, it is not sustainable and poses risks for long-term development. In contrast, StakeStone's prudent strategy—such as supporting instant withdrawals and introducing external market makers to meet exit demands—demonstrates a healthier and more sustainable development model. Looking to the future, StakeStone aims to become a leader in the liquidity asset field.
