Staked NEAR

Staked NEAR (STNEAR) is a cryptocurrency token that operates on the Aurora platform. The token represents staked NEAR, which allows users to earn rewards while their NEAR tokens are staked. The stNEAR token is a NEP-141 token managed by the MetaPool contract, representing a user's share of the MetaPool stake.

The history of STNEAR is closely tied to the MetaPool platform, which was initially designed to provide staking services for NEAR tokens. The platform allowed users to stake their NEAR tokens and receive stNEAR tokens in return, which could be used in other markets while still earning rewards. The stNEAR token's price increases with each epoch as staking rewards are added to the pool, making it a valuable collateral asset in the NEAR ecosystem.

The MetaPool platform also has its native governance token, $META, which was distributed to users who staked on the platform. The distribution of $META tokens was initially done once per epoch but later changed to once per week. The total supply of $META tokens is capped at 1 billion.

STNEAR has been traded on various exchanges, including Binance and Coinbase, and its price has fluctuated over time. As of recent data, the token's price has seen significant changes, with a 24-hour trading volume of $48,886 and a market capitalization of $2,716,387. The token's all-time high was recorded on May 5, 2024, at $7,111.75, and its all-time low was on October 19, 2023, at $1.16.

Overall, the history of STNEAR is marked by its integration with the MetaPool platform, its use as a staking token, and its fluctuating market performance.

The Staked NEAR (stNEAR) token is a crucial component of the Meta Pool ecosystem, which is designed to enhance the decentralization and security of the NEAR Protocol. Here's how it works:

When users liquid stake their NEAR tokens with Meta Pool, they receive stNEAR tokens in return. These stNEAR tokens represent the user's share of the Meta Pool stake and can be used in other markets while still earning staking rewards. The value of stNEAR tokens increases as staking rewards are added to the pool on each epoch.

Staking NEAR tokens through Meta Pool improves the decentralization of the network. Unlike staking directly through the NEAR Wallet, which only allows staking to one validator node, Meta Pool distributes staked NEAR across 95 validator nodes. This distribution ensures that the network is more decentralized, as it reduces the concentration of staked NEAR on the top ten nodes.

When users stake their NEAR tokens, they receive stNEAR tokens, which are secure and can be used in other markets. The staking rewards are distributed proportionally to each user's share of the total amount staked. Validators are responsible for securing the NEAR Protocol, and users earn rewards based on the performance of the validators they support.

Users have the option to unstake their stNEAR tokens, either immediately with a small fee (Fast Unstake) or through a traditional method that takes six days to complete (Delayed Unstake). This flexibility allows users to manage their staked assets according to their needs.

The stNEAR token is a key element in the Meta Pool ecosystem, enabling users to participate in liquid staking, earn rewards, and contribute to the security and decentralization of the NEAR Protocol.

The token Staked NEAR (stNEAR) has several strengths that make it an attractive option for investors and stakers:

1. Liquid Staking Token: stNEAR is a liquid staking token, which means it accrues value over time based on the price of NEAR plus the staking rewards. This allows stakers to benefit from both the token's price appreciation and the additional rewards earned through staking.

2. Security and Fraud Prevention: NEAR's staking mechanism has an innate security and fraud prevention system, ensuring that stakers' assets are protected and secure.

3. Flexibility: stNEAR can be unstaked immediately, providing stakers with the flexibility to manage their assets as needed.

4. Passive Income: By staking NEAR, users can generate passive income through staking rewards, which can be substantial, with current annualized reward rates around 8.63%.

5. Tokenization: stNEAR tokenizes staked NEAR, allowing it to be used as a NEP-141 token, which can be utilized in various DeFi protocols, further increasing its utility and potential for returns.

6. Ease of Use: stNEAR can be easily swapped for NEAR or unstaked directly through platforms like Meta Pool, making it simple for users to manage their staked assets.

These strengths make stNEAR an attractive option for those looking to stake NEAR tokens and earn passive income while maintaining control over their assets.

Staked NEAR (stNEAR) carries several financial risks that investors should consider before investing:

Market risks are a significant concern for stNEAR investors. Negative fluctuations in the price of NEAR can result in losses, even if the APY is high. For instance, if the APY is 20% but the value of NEAR drops by 65%, the investor will still incur a loss. It is crucial to analyze the market holistically before staking NEAR.

Liquidity risks are another important consideration. When staking NEAR, the tokens are locked for a period of time, making them illiquid. This means that investors cannot sell, withdraw, or swap their staked NEAR until the lock is complete. In the case of NEAR, there is a 2-day waiting period after unstaking before liquidity is regained. It is essential to be mindful of staking locks and stake assets with high trade volumes on reputable platforms.

Validator risks are also a concern. Validators can be penalized for misbehavior, such as downtime or double signing blocks. These penalties can result in slashing, where a portion of the validator’s staked tokens is taken away, or jailing, where the validator is no longer considered active until unjailed. These penalties can impact staking returns and should be considered when choosing a validator.

Counterparty risks exist whenever assets are handed over to an external provider. Credit events involving the staking provider could affect the assets entrusted to them. However, staking via a third-party provider is fundamentally different from depositing funds into a lending protocol that later becomes insolvent. It is essential to select trustable staking providers to minimize counterparty risk.

Project continuity risks are also a consideration. The continuity of the staking protocol and the underlying project can impact the value of stNEAR. Factors such as the project’s TVL, token price, and volatility should be assessed to determine the overall sentiment around the project.

Inflation risks are another concern. The annualized expansion rate of the network, known as the inflation rate, can impact the value of stNEAR. A high inflation rate can lead to a decrease in the value of stNEAR over time.

Slashing risks are specific to staking protocols. If a validator misbehaves, a portion of their staked tokens can be taken away as a penalty. This can impact the value of stNEAR and should be considered when choosing a validator.

General risks associated with staking and DeFi investments also apply to stNEAR. These include risks related to smart contract vulnerabilities, regulatory changes, and market volatility.

It is essential for investors to carefully evaluate these financial risks before investing in Staked NEAR (stNEAR).

• Claudio: Claudio is a key team member from Meta Pool, which is the leading liquid staking ecosystem behind the Staked NEAR (STNEAR) token. He has been involved in AMAs (Ask Me Anything) sessions, discussing the project's security, tokenomics, and future plans.