Submitting on behalf of Stader Labs.
Abstract
Stader proposes addition of BNBx as collateral to the Radiant BNB market. Here’s why BNBx will be a strong addition to the Radiant BNB market and benefits Radiant community:
BNBx is a BEP20 token that represents the user’s staked assets and accrued rewards. BNBx increases in value relative to BNB as staking rewards accrue. BNBx has over ~$10M of liquidity for BNB<> BNBx pool on Ellipsis, Wombat, ApeSwap and Thena.
BNBx is already integrated with ApeSwap lending and is about to be integrated on Venus as well.
An example of a similar integration is the listing of Stader’s MaticX (our liquid token solution on Polygon) on Aave
BNBx is well positioned to be integrated in the Radiant BNB market given the following:
- Stringent security measures deployed by Stader
- The growing liquidity of BNBx
- Live price feed with Chainlink
- The multiple borrowing use cases it promises to unlock once integrated
Motivation
We believe BNBx will be a great addition to Radiant BNB markets as it will unlock several borrowing use cases including leveraged staking, borrowing other assets with BNBx and potentially several other trading strategies.
We expect BNBx to continue to grow in demand as we integrate across more ecosystem partners, build automated yield strategies on BNBx <> Radiant related markets.
Here are some benefits this collaboration can deliver for Radiant finance and its users.
- BNBx unlocks liquidity on staked BNB. With BNBx, BNB holders can participate in both staking and Defi
- Several innovative DeFi strategies including Leveraged staking, delta neutral strategies can be built on top of Radiant markets with BNBx as collateral, thus increasing utilization of BNB and stable coin markets on Radiant
- Lending markets on Radiant can be built using BNBx as collateral thus improving the utilization of BNB
These new opportunities are expected to increase the utilization of BNB pools on Radiant, increasing the yield for lenders and attracting more users to the protocol. We also expect BNBx to continue to grow in demand as we integrate across more ecosystem partners.
Rationale
We expect the new borrowing use cases and opportunities are expected to increase the utilization of BNB pools on Radiant, increasing the yield for lenders and attracting more users to the protocol.
Key Terms & Specifications
BNBx is always backed by BNB staked with validators via the Stader contract. As BNBx is a c-token and increases vis-a-vis BNB with staking rewards addition, we propose the following risk factors for BNBx.
- Collateral factor of 70%
- Deposit cap of $3.5M (~50% of the BNBx TVL)
- Liquidation penalty of 15%
Price Oracle
The Chainlink price feed for BNBx is live. Below are the relevant addresses:
- Aggregator: 0xf230822f96bc8819e037db85695fc093d2C68Ccd
- Proxy: 0xc4429B539397a3166eF3ef132c29e34715a3ABb4
Refer here for more details: Price Feed Contract Addresses | Chainlink Documentation
BNBx Liquidity Pools
Overall about ~$10M of liquidity is pooled on BNBx based pools across DEXs as of today. Stader plans to grow the LP size across DEXs to over $20M over the next few weeks.
- Thena: ~$4.6M
- Ellipsis: ~$2.8M
- Wombat: ~$1.5M
- Apeswap: ~$1.2M
To provide liquidity for BNBx, our strategy is to focus on stableswap pools which offer low slippage and are more capital efficient for liquidity providers
About Staderlabs & BNBx
BNBx is built by Staderlabs, a multi-chain liquid staking platform with ~$150M in assets, 24K+ users staking across multiple chains including BNB, Hedera, Polygon, Fantom, Near, etc.
BNBx is a BEP20 token that represents a user’s share of the staked BNB assets with Stader. It is a token that increases in price as the staked BNB accrues staking rewards and these rewards are compounded i.e. BNBx simply becomes more expensive over time relative to BNB.
Currently, about 24,000 BNB is staked on BNBx contract (~$7 Mn) by 1500+ stakers.
BNBx Security Measures
- BNBx has been audited by top security audit firms Halborn and PeckShield
- Code review by BNB chain
- Use of Multi-sig accounts for changing smart contract parameters, with a majority of the signers being external to Stader. This ensures Stader does not unilaterally take a decision that is detrimental to the community.
- Time locks for making upgrades to core smart contracts thus adding another layer of security on top of the multi-sig driven changes.
- Real-time on-chain security tracking by Forta to alert on any threats
- $1Mn Bug Bounty program with Immunefi for most of our contract to stress test the implementation.
Steps to Implement
BNBx integration guide: bnbX/INTEGRATION.md at main · stader-labs/bnbX · GitHub
BNBx FAQ Docs: BNB Chain | StaderLabs docs
Stake Manager: TransparentUpgradeableProxy | Address 0x7276241a669489e4bbb76f63d2a43bfe63080f2f | BscScan
BNBx token contract: Staderlabs: BNBx Token | Address 0x1bdd3cf7f79cfb8edbb955f20ad99211551ba275 | BscScan
Chainlink price feed for BNBx:
- Aggregator: 0xf230822f96bc8819e037db85695fc093d2C68Ccd
- Proxy: 0xc4429B539397a3166eF3ef132c29e34715a3ABb4