How does Stader use the HBAR that is staked? Is

Question

Hedera Community Chat ($HBAR)

eloquentplatypus

How does Stader use the HBAR that is staked? Is

it used like Nexo uses crypto for loans or does it just sit in a smart contract? Any links would be appreciated.

#cryptocurrency #english #hbar

0

01.05.2022

7 ответов

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eloquentplatypus Автор вопроса

Jeeptopdown
Yes. Edit: well there are other points that could...

Do you know if the liquidity is used in any way or is the staking simply to encourage HBAR investment?

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01.05.2022

Jeeptopdown

eloquentplatypus
Do you know if the liquidity is used in any way or...

The HBAR itself is not used in any other way. Stader takes a cut - 10% of the reward before it is added to the pool. But the HBARX that you get in return is liquid. They are in talks with Saucer to use HBARX in their products. And there will be other DeFi products in the future that you will be able to use HBARX in. Basically you get to double dip - take advantage of native staking rewards (that will pass through Stader) and DeFi. BUT that’s only if you choose to use your HBARX in that way. You can also just leave it with Stader.

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01.05.2022

eloquentplatypus Автор вопроса

Jeeptopdown
Yes. Edit: well there are other points that could...

When you say other points would you mind elaborating if possible?

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01.05.2022

Jeeptopdown

eloquentplatypus
When you say other points would you mind elaborati...

I’m not a tech guy, but I asked and got this answer a while back before it went live… “It “all” doesn’t reside on Hedera. There is additional software that is part of the end-to-end ecosystem that don’t reside on Hedera where vulnerabilities could exist (eg UI, APIs, private key storage, etc). In addition, even though the smart contract resides on Hedera native services, vulnerabilities could still exist within the smart contract code that could open it up to hacking attack vectors. To be clear, I’m not criticizing Stader or casting doubts about their implementation, I am highlighting potential vulnerabilities inherent in all implementations of smart contracts, regardless of the platform.”

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01.05.2022

eloquentplatypus Автор вопроса

Jeeptopdown
I’m not a tech guy, but I asked and got this answe...

Sincerely, thanks for these replies.

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01.05.2022

Jeeptopdown

eloquentplatypus
Sincerely, thanks for these replies.

No problem. Please feel free to fire away if you have any more questions.

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01.05.2022