Exploring the potential of small-cap altcoins: Stader (SD), a liquidity pledge project

Author: Sleeping in the Rain

At present, my personal opinion is that the market is in an adjustment period, and there are reasons to be bullish or bearish. It is a difficult period. But I think the bull market is still there, it just takes some time.

The current task I have given myself is to find some potential altcoins that have the ability to capture market attention in the future during the brewing stage of the market, and share them on Twitter.

This is a series, let's dive in together:

1/ It's nonsense to suggest that you buy $BTC $ETH $SOL, but I think if your point of view is that the bull market is still there, it's not a big problem to accumulate the spot of these mainstream tokens (to do currency-based growth).

The token we are going to talk about today is $SD. (Preview, the next article will talk about $MKR or $BANANA)

2/ $SD was included in the coin listing roadmap by Coinbase on July 10. It is worth mentioning that the liquidity of $SD is not very good, so you need to pay attention if you want to enter the market.

Next, let's take a look at Stader's current fundamentals and product progress.

3/ Fundamentals

I introduced Stader in detail last year. At that time, in order to cater to Ethereum's LSD narrative, Stader launched related products for ETH pledge - the turning point of its fundamental data also occurred during this period. With the launch of the product, Stader's mainstream product also changed from MATICx to ETHx, and TVL also rose from less than 100M to 590M. However, after its price reached its peak before the launch of the LSD product, it fell back to around 0.4 - until Stader was included in the Coinbase listing roadmap.

4/ Product progress

The main idea of ​​ETHx's product promotion is to cooperate with other DeFi applications to launch ETHx farms (for example, on Arbitrum, AAVE v3 has been launched, Symbiotic has been adopted, etc.), and $SD is used as an incentive to promote the adoption of ETHx. (It can also promote the liquidity of the ETHx pool)

The play is quite standard, not very aggressive, and it is cautious step by step.

5/ token

MC 27M, FDV 80M

About the situation of tokens, we can divide it into three parts:

The first part, destruction.

On June 25, Stader destroyed 30M $SD. In this tweet, Stader gave a detailed explanation:

In short, the team burned some tokens belonging to Rewards+Farming, Ecosystem Fund and DAO Fund. The interests of the team and investors were not affected. Perhaps it can be understood that the team and investors have sufficient motivation to drive the growth of $SD prices in order to achieve the purpose of shipment. (You can think about it either way here)

https://x.com/staderlabs/status/1804176551325634805

Part 2, Utilities. In addition to Governance and Transaction payments, there are the following:

Utilities to be launched in the future

https://x.com/staderlabs/status/1809261543697313988

The third part, repurchase.

The team will use 20% of quarterly revenue to repurchase $SD (the daily revenue curve has no obvious growth and is basically stable). Last quarter, the protocol revenue was 142K, and 20% is not much. This is more to boost market confidence.

In terms of token economics, Stader's idea is to deeply integrate the $SD application scenario with the ETHx business line. By closely linking its own business with the $SD utility, the goal of promoting the growth of $SD value as the market share of ETHx increases is achieved.

6/ Simple summary

The core of doing a project is (making money) dumping more expensive tokens into the market, and (excellent projects) can earn cash flow through their own business models. Combined, the Stader team is working diligently to promote its own business development and add more Utilities to the token, while combining the two. Considering that Stader has now been included in the Coinbase listing roadmap, it has completed the first step in gaining market attention. So I will keep an eye on it later.