With the migration of the BSC token to Hedera there is now the opportunity to stake the SLP in 1 of the validator nodes to receive rewards and we will help secure the network.
Since it is liquid staking, the SLP will stay available at all times and no actions and the SLP can be staked at all times.
Also a big advantage here is that there is no risk of impermanent loss.
The annual yield right now is around 0.65% (according to my calculation), which is not very high. But because there are no risks involved it will be good for the SLP no matter what.
Staking rewards will be added to the SLP to help it grow. There is no redistribution to the DAO members at this time.
The last big advantage i see is that the BankSocial DAO is participating in securing the Hedera Network!
The decision for the node choice will be done by the BankSocial development team after this temperature check gets voted in onchain. They will have the choice of Node 1 to Node 10.
If i am missing something please let me know so it can be added.
Basic question, but is the SLP actually kept in HBAR? In order to native stake on Hedera, the amount staked must be in HBAR tokens. If the SLP is held in BSL or USD, then they would need to be exchanged into HBAR tokens in order to do this staking proposal.
So if the SLP is held in BSL(HTS) then it cannot be natively staked on Hedera. Only HBAR tokens can be natively staked on the Hedera network. I don’t have an issue with converting the SLP into HBAR, but the community should be made aware that this is the only way to stake natively on Hedera and the value of the SLP will be subject to price fluctuations in the HBAR token rather than the price of the BSL(HTS) token.
Thanks for clarifying. I’m 100% “on board” with the proposal then. It looks like there is 18M HBAR in the account you listed - that’s massive considering BSL only recently migrated to Hedera!!!
In terms of logistics, I’d definitely recommend splitting the HBAR up into different wallets prior to staking and then stake to a variety of nodes. FYI, each account ID can only be staked to a single node.
Why do you recommend to split it up to stake in different nodes?
I do think that that will be a bit complicated, as the SLP needs to be actively used for the loans. Managing multiple addresses brings it difficulties.
But of course if the team can pull it off it is something to consider doing.
Actually, it looks like the 18M is in BSL tokens rather than HBAR, so not quite as huge amount as I thought. Even though each of the nodes pay the same amount for native staking, I think it’s just prudent to split large sums into multiple wallets and stake to different nodes. It reduces the risk of loss if a wallet is somehow hacked, plus reduces loss of rewards if any particular node went down for a period of time and did not contribute to consensus (thereby not earning consensus rewards). Not a big deal or a “must have”, but just smart risk management as long as the workload to do this isn’t too much.
Why not split the amount between hbar/hbarx and stake it to the SaucerSwap pool and earn 5.77% with little to no impermanent loss. The two tokens prices are tied together.
I am fine with this. It will barely pay anything but better than staying idle. We need to come up with better solutions then this in the future (unless Hedera goes back to the 6.5%) but for now it is fine.