Spiral Locker Launched for Stake DAO Token
Spiral DAO has recently launched its first liquid locker — the MAV Spiral Locker, already securing an impressive 24% of the total veMAV market share. Now, we are launching the first liquid locker for our partner protocol’s governance token — SDT.
Introduction to Spiral Lockers
A liquid locker allows users to ‘lock’ their tokens in a smart contract to achieve all the benefits that locked tokens provide (voting and boosting power) while also retaining the liquidity of those tokens.
Something similar to liquid lockers has been created before by Convex, Yearn, and Stake DAO, who made a significant step forward toward a true liquid locker.
Spiral DAO aims to create deep liquidity for all liquid wraps it provides because there is no liquid lock without liquidity. Our strategy is to employ a complex incentivization system to sustain a strong peg and allow holders to freely utilize their liquid-locked tokens.
As before with MAV Spiral Locker, with the new SDT lockers, holders will have full control over how they want to utilize their tokens and boosting power they hold. A real liquid locker, nothing less.
For a brief explanation of liquid lockers mechanism and history and to discover why the unique architecture of Spiral Lockers is propelling advancements in liquid locking, refer to our detailed article here.
About Stake DAO
Stake DAO is one of our first partners, the creator of the first true liquid locker, and the originator of the term “liquid locker” itself.
Stake DAO users can lock their CRV, BAL as well, as other tokens while remaining liquid. Holding 7% of the total veCRV allows Stake DAO to extend the advantage of the CRV boosting mechanism to users with smaller capital sizes and increase veCRV boosting efficiency across the market. Stake DAO also provides its users with its proprietary Votemarket, an avenue to participate in the vote incentives market for CRV, FRAX, BAL, and other ecosystems.
The Power of Stake DAO token (SDT)
SDT is Stake DAO’s governance token.
Locking SDT tokens for veSDT for periods up to 4 years on Stake DAO provides users with additional tools to increase their capital utilization:
- Stake DAO governance power
- Boosting any pool for an additional 2–4% stable yield
- Boosting sdCRV as well as other sd tokens voting power.
SDT lock works similarly to other locked tokens — the power you can wield depends on the lock period and your veSDT share. SDT token has performed great in recent times, showing great price stability and reliability.
Introducing SDT Spiral Locker
As we’ve discussed above, SDT is a powerful token that enables its users to enhance their capital efficiency. The only thing that has been lacking is the possibility of achieving these benefits while remaining liquid. This time, Spiral has joined forces with Stake DAO to create the first-ever liquid locker for SDT.
About sprSDT
Upon locking their SDT with Spiral DAO, users will receive a Spiral SDT (sprSDT) token — a transferable and tradable wrapped version of SDT. As with MAV Spiral Locker Spiral will offer two main routes of utilizing sprSDT:
- sprSDT staking: to gain boosting power that can be utilized, sold, or delegated, and additional native SPR incentives.
- Delegation: to any address, including your own and Spiral DAO.
- Voting power: SDT voting power won’t be distributed in the beginning. It’s an additional technically difficult engineering task not worth the value at the moment.
- sprSDT/SDT LP: become a liquidity provider in the sprSDT/SDT pool for additional rewards. The liquidity pool will be added during the week after launch.
SDT Boost Delegation
Delegation is available on the SDT Spiral Locker page.
- sprSDT holders in staking can manage their boosting power themselves, delegating boosts to their own address, or they can delegate it to any other address, later on, to Concentrator and Paladin boost market support will be added.
- Boosts are delegated for a chosen period, after which you can choose a new delegation address and period.
- An option to delegate a portion of your boosts to one address and another portion to a different address is available.
- Redelegation: SDT delegation in Stake DAO works in such a way that boosts linearly lose their power over time. For example, you delegate 1000 boosts for two months — in a month, it will be 500. So, the best strategy is to redelegate your boosts for the remaining period periodically. So, if your delegation is 1000 for two months, in one month, you can come back and redelegate 500 boosts for one month. Your total delegation will be 1000 boosts for one month again. The spiral locker page is equipped with all the necessary tools for this strategy. However, redelegating is only necessary if the boosts have been updated on the receiver. If they haven’t — the receiver will still hold an effective balance from the date of the last update.
1. Delegating boosts to any address
sprSDT holders have the option to delegate SDT boosts to any address, including their own, to decide for themselves how to utilize these boosts on Stake DAO.
2. Delegating boosts to Concentrator
Coming soon
If sprSDT holders will be able to choose to delegate their boosts to the Concentrator for additional rewards.
3. Delegating boosts to Paladin
Coming soon
Paladin is preparing to launch their new product, which will significantly increase their boost marketplace capabilities. Spiral DAO will be one of the first adopters, and Paladin’s SDT boost market will be available on the Spiral website. sprSDT holders will be able to participate in Paladin’s SDT boost market and lend their SDT boosts to renters on Paladin and receive native rewards.
Initial Liquidity and Distribution
Currently, the Spiral Treasury holds 400k locked SDT and 300k SDT (~$300k worth). The first preminted sprSDT to kick-start liquidity and incentivize initial lockers will be backed by Treasury assets.
Minting fee: as always — 0%.
Staking: Spiral DAO won’t take any fees for the first few months. Later on, the fee will increase to 10%.
SDT Spiral Locker finally offers SDT holders more flexibility without sacrificing major functionality. We believe it will contribute greatly to both Spiral and Stake DAO communities and will encourage more people to lock their SDT.
There are a lot more exciting updates and cool features to come!
Stay tuned 🌀
