Introducing stBAND: BAND’s First Liquid Staking Derivative, a Key Element of Band v3!

TL;DR

• stBAND is a new liquid staking derivative for BAND tokens, developed in collaboration with Stride.
• Liquidity + Staking allows you to stake BAND tokens while maintaining liquidity, enabling participation in DeFi activities and earning staking rewards simultaneously.
• sBAND Integration plays a crucial role in Band Protocol’s upcoming v3 upgrade, particularly within the new Signaling Hub, which involves governance and symbol selection.
• Individuals can get stBAND by staking BAND directly on the Stride platform or trading BAND for stBAND on the Osmosis decentralized exchange.
• stBAND will see deeper integration into DeFi platforms, expanded cross-chain compatibility, and new staking features as part of the v3 upgrade.
• The Band community is encouraged to contribute to stBAND’s development through the Band Grants Program and Band Jedi Ambassador Program.

Introduction

We are delighted to share the launch of stBAND the first liquid staking derivative for BAND tokens, in collaboration with Stride, the leading liquid staking protocol on Cosmos. The development of stBAND reflects our shared vision to enhance the utility and accessibility of BAND tokens, empowering users with greater flexibility and opportunities within the DeFi ecosystem. The launch of stBAND also marks a significant milestone for Band Protocol, opening new avenues for token holders to participate in staking without sacrificing liquidity, ultimately strengthening the network’s security and decentralization.

Through the integration of Stride's innovative liquid staking technology, stBAND enables users to stake their BAND tokens and receive stBAND tokens in return. These tokens can be utilized across various DeFi applications, enabling BAND holders to continue earning staking rewards while unlocking new possibilities for leveraging their staked assets. This provides a seamless blend of security, liquidity, and yield generation.

In this blog post, we will dive deeper into the concept of liquid staking, explore why it's a crucial addition to the Band Protocol ecosystem—particularly in the context of v3—and discuss how stBAND is poised to transform the way users and developers interact with BAND tokens.

What is Liquid Staking?

Liquid staking is an innovative approach that allows users to stake their tokens and to secure a blockchain network while retaining the flexibility to use those tokens in other ways. Traditionally, when users stake their tokens, those assets are locked up for a certain period, making them inaccessible for other activities. This lack of liquidity can be a drawback, especially for users who want to stay active in DeFi markets or need the ability to move their assets quickly.

Liquid staking addresses this challenge by providing users with a tokenized representation of their staked assets—like stBAND—that can be freely used in various decentralized finance (DeFi) applications. Essentially, when you stake your BAND tokens through Stride, you receive an equivalent amount of stBAND tokens. These stBAND tokens represent your staked BAND and can be traded, lent, or utilized in other DeFi protocols, all while your original BAND tokens continue to earn staking rewards.

This approach offers the best of both worlds: the security and benefits of staking, combined with the liquidity and flexibility needed to fully participate in the ever-evolving DeFi ecosystem. As a result, liquid staking not only enhances the utility of the underlying tokens but also contributes to a more dynamic and efficient use of capital within the blockchain space.

Why Band Needs Liquid Staking

As we gears up for the upcoming v3 upgrade, the importance of staking within the network is set to increase dramatically. This new design will introduce even more functionality and utility for BAND tokens, making staking a central component of the ecosystem's growth and security. In this context, liquid staking through stBAND becomes not just a beneficial option but a critical tool for maximizing the potential of BAND tokens.

Encouraging Increased Participation and Liquidity

One of the key goals of v3 is to drive greater participation in the network, making it easier for individuals to help secure BandChain while ensuring it remains robust and decentralized. Liquid staking through stBAND aligns perfectly with this objective by providing a way for more participants to engage in staking without losing access to their tokens. As Band Protocol evolves, maintaining liquidity while participating in staking will become increasingly important, especially as the network introduces new features and functionalities designed to enhance token utility, like Signaling Hub.

Enhanced Utility for BAND Tokens in Band v3’s Signaling Hub

The upcoming launch of Band Protocol’s v3 will make staking more crucial than ever, particularly with the introduction of the Signaling Hub. This key component will orchestrate the selection of price symbols published by validators, using a well-designed game theory that relies on active participation from network stakeholders. The goal is to ensure the most relevant and in-demand price data is consistently updated and available to developers, dApps, and chains. To fully leverage these new features, stBAND offers several key advantages:

• Seamless interaction and flexibilitystBAND offers the flexibility to earn staking rewards while maintaining liquidity, allowing you to actively participate in the Signaling Hub’s governance processes. Holding stBAND secures your role in decision-making and positions you to benefit from the expanded opportunities that Band v3 will introduce.
• Critical Role in Staking and Governance:In v3, staking becomes integral to the Band ecosystem, especially through new features like voting and symbol selection in the Signaling Hub. stBAND enables full participation in these governance processes without the need to unstake your tokens, making it a powerful tool for both security and flexibility.
• Enhanced Liquidity and Participation:Band v3 is set to introduce additional uses for stBAND within the ecosystem, enhancing its liquidity and encouraging greater participation. These developments will make stBAND an even more versatile and valuable asset within the Band Protocol.

How to Get Your stBAND

Acquiring stBAND, the liquid staking derivative of BAND, is straightforward and can be done through multiple methods, each offering its advantages depending on your preferences and needs. Here’s a breakdown of how you can get stBAND:

1. Direct Staking on Stride

• Step 1: Visit the Stride Platform:Navigate to this site where you will start staking your BAND tokens.
• Step 2: Stake Your BAND:Connect your wallet and stake your BAND tokens directly on the platform.Stride will automatically delegate your BAND to a network validator.
• Step 3: Receive stBAND:In return for your staked BAND, you will receive an equivalent amount of stBAND tokens in your wallet.
• Benefit of this method:This method allows you to start earning staking rewards immediately. Your stBAND tokens will represent your staked BAND while retaining liquidity.

2. Trading on Osmosis

• Step 1: Access Osmosis:Visit the Osmosis decentralized exchange (DEX) within the Cosmos ecosystem via this link: https://app.osmosis.zone
• Step 2: Locate the stBAND Pool:Find the liquidity pool where your preferred token is traded against BAND. For example, you can trade USDC/stBAND as shown in the provided video.
• Step 3: Swap for stBAND:Swap your preferred token for stBAND using the liquidity pool. Once the trade is complete, stBAND tokens will be deposited into your wallet.
• Benefit of this method:This method is fast and allows you to acquire stBAND without going through the staking process yourself. Addtionally, the stBAND you obtain will continue to earn staking rewards as long as you hold it.

Note: The approaches demonstrated in the videos above are examples of how to conveniently acquire stBAND. Depending on your individual circumstances and preferences, other methods to obtain stBAND may also be more suitable.

Band’s Future Developments

As Band Protocol continues to evolves, the introduction of stBAND marks the beginning of a broader vision to enhance the network's utility and expand its ecosystem as part of the v3 design. Several exciting developments are on the horizon that will further integrate stBAND and liquid staking into the fabric of Band Protocol’s future.

Integration with DeFi and Cross-Chain Ecosystems

• DeFi Expansion:As the DeFi space grows, stBAND is set to become a key asset across multiple protocols. Future developments may include deeper integration with DeFi platforms beyond Osmosis, enabling stBAND to be used in lending, borrowing, and yield farming across various ecosystems.
• Cross-Chain Compatibility:Building on the interoperability of the Cosmos ecosystem, future developments could enhance the cross-chain capabilities of stBAND, allowing it to be utilized across a broader range of blockchains. This would open up new avenues for stBAND holders to leverage their assets in diverse DeFi environments.

Community-Driven Innovations

1. Open-Source Development:

As an open-source project, Band Protocol actively encourages community contributions. The future developments of stBAND could be shaped by innovative community-driven ideas that enhance its utility, security, and integration with other projects.

Developers interested in building with Band Protocol are invited to explore our resources:

• BandChain Documentation: Comprehensive guides and technical documentation.
• BandChain GitHub: Access the codebase and contribute to Band Protocol’s development.

2. Band Community Programs:

The Band community is central to the evolution of stBAND. Currently, two key programs are active where members can actively participate and help shape its future.

• Band Grants Program:This program focuses on driving further developments on BandChain. By participating, community members can contribute to new features, improvements, or even entirely new use cases for stBAND. Your ideas and innovations could play a pivotal role in shaping the future of the Band ecosystem.
  • Submit your idea here: https://grants.bandprotocol.com
• Band Jedi Ambassador Program:This official ambassador program prioritizes community building and creates a welcoming environment for everyone, regardless of their knowledge level in blockchain or cryptocurrency. Our Jedi Ambassadors are ready to guide and support new members who want to become a part of our Jedi community, helping them navigate the Band Protocol ecosystem.
  • How to become a part of our Band Jedi community: https://blog.bandprotocol.com/band-jedi-ambassador-program-annoucement/
  • Start a discussion on Band’s Discord: https://discord.bandprotocol.com

Conclusion

The launch of stBAND marks a pivotal moment for Band Protocol, providing BAND holders with an innovative way to earn staking rewards while maintaining liquidity. As BandChain gears up for its v3 upgrade, stBAND will play a critical role in enhancing the utility and flexibility of BAND tokens, particularly through its integration with the Signaling Hub and other governance features. Whether you’re staking directly through Stride or trading on Osmosis, stBAND offers a seamless way to participate in the Band Protocol ecosystem.

Looking ahead, the future of stBAND is promising, with plans for deeper integration into DeFi platforms, cross-chain compatibility, and expanded staking features in v3. Our community will be at the heart of this evolution, driving new innovations and ensuring that stBAND remains a versatile and valuable asset within the broader blockchain space. Whether you’re a developer, a community member, or an active participant in the DeFi ecosystem, stBAND opens up new possibilities for engaging with Band Protocol in meaningful ways.

About Stride

Stride is a blockchain ("zone") that provides liquidity for staked assets. Using Stride, you can earn both staking and DeFi yields across the Cosmos IBC ecosystem. Read our "Meet Stride" blog post to learn more about why we built Stride.

Stride is built using Cosmos SDK and Tendermint. Stride allows users to liquid stake any IBC-compatible cosmos SDK native appchain token. Under the hood, Stride leverages the Inter-Blockchain Communication protocol, Interchain Accounts and Interchain Queries.

Learn more about Stride: Twitter | Discord | Website

About Band Protocol

An open data oracle for everyone - Band delivers free information flow and connects the real world to the Web 3, serving as the backbone of DeFi, prediction markets, and games for global blockchain users and institutions with zero counterparty risk.

Through an incentivized tokenomic design and robust governance, Band helps secure billions of dollar in value on-chain.

Learn more about Band: Linktree