Liquid Staking

Problem

Typically, on Proof-of-Stake networks, the network is secured by a group of validators that are in turn secured by economic security. In return for locking these tokens, the stakers receive rewards in proportion to how many tokens they have staked. To maintain economic security, there is usually an unbonding period when trying to unstake tokens. As a result of this structure, traditional stakers have zero access to liquidity or the general DeFi ecosystem. In addition to the systematic problems, traditional staking UX is cumbersome—researching operators, distributing stake, and interacting with multiple systems is a painful process.

Solution

Liquid staking solves the typical exclusivity of staking, allowing users to earn rewards without sacrificing access to liquidity or usage across DeFi. In addition to these obvious benefits, liquid staking helps users by:

• Making the staking process extremely simple—users can stake with stMOVE in < 30 seconds.

• Compounding rewards as a result of automatic validator rebalancing.

• Consistency; stMOVE will have a large and elite validator set—you don't have to rely on one infrastructure provider.

Network Effects & Network Benefits

Something extremely overlooked about LSTs is their network effects and benefits on the greater DeFi ecosystem. A great case study is stETH on Ethereum, where $7b of stETH is used as collateral across the ecosystem, more than all stablecoin collateral combined. From the network perspective, LSTs:

• Unlock the most significant source of sustainable retail yield

• Have an elite and reputable validator set securing the network

• Increase the total amount of funds securing the network

• Make DeFi amazing

stMOVE will be the lifeblood of the Movement DeFi ecosystem

Overview

We value decentralized governance with high regard; however, we disagree with the common crypto route of building a protocol and launching a governance token where the sole utility of this token is to govern the other protocol. Oftentimes, this creates a situation where the economic security by the governance token does not exceed the TVL of the protocol, thus creating an attack vector. We have a legislative <> executive governance design.

• legislative:

  • The actor that proposes new governance additions, protocol upgrades, and operator onboarding is controlled by a multisig that is composed of members of the thunderhead team as well as other anonymous members of the community. When a new transaction is proposed, it must first be approved by this multisig before it gets put up to the protocol for voting.

• executive

  • This is the system that approves proposals proposed by the legislative branch, and it is simply a weighted popular vote of stMOVE token holders. So, if a malicious proposal is created, the users of stMOVE have the complete power to veto the proposal. All proposals are considered optimistic and there must be a certain total number of tokens votes as well as a consensus percentage by the token holders to veto.

ETH Mainnet

3. Market Volatility: The value of staked assets and their derivatives can fluctuate due to market conditions. Price swings may impact the value of your holdings, especially if the underlying assets experience significant volatility.

4. Operational Risks: The success of liquid staking depends on the operational integrity of the staking infrastructure. Issues such as system downtime or technical failures can affect staking rewards and the security of your assets.

5. Regulatory Uncertainty: The regulatory environment for staking and related financial products is evolving. Changes in regulations could impact the legality or profitability of liquid staking activities.

The stMOVE protocol will hold a significant portion of MOVE supply. It is imperative that the system is maximally secure. Audits

Simplicity

he protocol is built with simplicity in mind. We intentionally simplify mechanisms to reduce the risk of vulnerability. We do not use any complex math and we segment out components of the protocol to reduce the impact of a possible vulnerability. Liquid staking is an order of magnitude simpler mechanism than lending markets or AMMs which significantly increases the safety of user deposits.

Audits

Governance

stMOVE is both an LST and also a governance token, this means the larger the holding of stMOVE, the bigger say you'll get on proposals. staked hype is one of the first LSTs to have rights in governance matters. This ensures that holders and users remain in control of the protocol.

How Governance Works

When the governance multisig signers submit proposals, they correspond on the backend to Gnosis Safe transactions. Such proposals can then be either approved or vetoed by stMOVE holders. These proposals are optimistic, meaning that they succeed by default (unless quorum is met and they are vetoed).

Vulnerability Reporting

Protocol

Deposit & Staking incentives

Mint stMOVE (future staked MOVE) for MOVE during the pre-launch phase and enjoy ~31% APY during the staking period. When mainnet launches approximately in 60 days, stMOVE will be unlocked and your stMOVE will hold the rewards from the launch phase.

Important Notices

• You will not be able to withdraw until Movement L2 is live.

• You cannot change your movement address after depositing.

Depositing

A valid movement wallet address must be submitted with your transaction, only one movement wallet address can be used per Ethereum mainnet address. If you submit two transactions with different movement addresses the last one will be assigned & used. You can view this from the deposit page.

We recommend using Razor and Nightly, which work on Chrome, Brave, Opera, Edge, and other Chromium-based browsers.

Bridge to Movement chain

This will be enabled once Movement chain is live.