Let it be clear from the start: SwissBorg aims to shake up traditional finance (TradFi) through decentralization. Gone are the days when a handful of institutional funds and accredited investors had a monopoly on investment opportunities. Gradually, individuals will have access to these with adequate tools registered in the DeFi. For this Lausanne-based company, strategies linked to the Stader protocol bring better returns in the staking of NEAR tokens.
SwissBorg takes a closer look at NEAR staking on Stader
The word “staking” refers to the act of immobilizing cryptocurrencies for a certain period of time with a view to obtaining rewards at the end. Alongside it are evolving other alternatives such as yield farming or liquidity mining, the importance of which no longer needs to be demonstrated in the eyes of lovers of decentralized finance.
It is with this in mind of promoting blockchain-based financial applications that SwissBorg recently presented its risk assessment linked to the “Earn on NEAR Strategy”. Said strategy consists of putting NEAR liquid staking tokens in Stader.
Note that a 2-day pre-subscription period is granted to the staker on occasion. Regarding the blocking period, it is limited to 60 days.
The risks related to the protocol and the strategy
SwissBorg awards a trust score “ Green », i.e. 70%, to NEAR’s liquid staking strategy on Stader’s decentralized application.
The risks relating to the Stader protocol concern in particular:
- continuity rated at 3/10, knowing that its TVL is only $150 million;
- the counterpart estimated at 2/10 since Stader handpicks the validators;
- liquidity which is 3/10, due to promises of refunds after the 60-day lock-in period.
In addition, the risks associated with the strategy were also assessed. Scored 1/10 for scalability, slashing, complexity, sustainability and yield risk in NEAR staking on Stader. The liquidity risk of NEAR staking, however, obtained a score of 4/10.
In conclusion, the SwissBorg team expressed its opinion: ” NEAR staking is low risk “. Thus, it returns the ball to the investors’ court.
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