NearX - StaderX on NEAR

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    StaderX is a Liquid staking Service on a multitude of blockchain. In this dashboard, we will look at the NEAR implementation, which was exploited in mid-August and made a comback in mid-September.

    Sections to be analysed.

    • Staking activity
    • Token activity
    • User Breakdown
    • Post Hack User retention
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    Staking Activity

    • The trend here is that V1 of the Protocol had more staking activity
    • Post hack, once operations were restored, the stacking numbers fell, while unstaking numbers increased
    • This led to an increase in net outflow and dwindling staked balances.

    ==Users:==

    • The hack stemmed an exponential adoption growth of NearX. However, it has slowly reached pre-hack levels of growth
    • While Liquid Capital and Capital efficiency is the key selling points, Pure staking, i.e Liquid Capital has been the preferred use case. More than 50% users only interact with the staking side, thus seeing NearX as a easy to sell staking position rather than DeFi component.
    • Sizeable chunk of users have used both v1 and v2. In terms of user preference, while the hack did push out some users, its pretty evenly distributed.
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    ==User Retention:==

    • Post hack, almost 50% of the pre-hack user base returned to use Stader.
    • On retention however, As shown in the Type of User retained chart these users were not as active as in v1.
    • Its possible that most returning users, did so to unstake their Near Staking positions. This is supported by User Retained type by Interaction chart, as most users were either stake side only or preferred stake side.
    • New Users entering the NearX ecosystem, saw a slight increase in stake side participation over liquid side participation.

    Token Activity

    Tracking movement of NearX token, which can be of two types :

    • P2P transfers - ft_transfer function call that simply transfers a token from one user to another
    • Function Call transfers - ft_transfer_call function that transfers a token and accepts a message that is interpreted as a function call on the recipient contract

    There is a healthy balance between P2P transfers and DeFi transfers exist. This is a result of Staders focus on DeFi integration, NearX being listed on major DEXes with Liquidity incentives, thus providing users the ability to get higher returns than normal staking, while the capital being easy to unlock.

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    • One must remember this is the trend despite Stader offering 30 to 40% APYs on NearX.

    • At its peak, StaderX had 2.5 Million Near staked. The restart saw alot of volume exiting.

    • Yet around 1.5 Million Near tokens remain staked, with healthy growth over the last two weeks.

    ==Methodology:==

    In this dashboard, a few metrics like Activity surrounding the protocol i.e Staking Activities and Token Movement; User activity and post Hack User retention were analysed.

    Protocol activity is a good measure of Protocol value and correlation i.e, if the protocol is being used as intended. Since the Hack primarily ended up harming on the DEX liquidity and debasing the Liquid token value, while the underlying remained same, it would be interesting to see if the protocol activity returned to normal, i.e return of sufficient DeFi activity on top of the staking token.

    User activity and retention is also a good gauge of the same. However, focusing on users is different from focusing on the Protocol activity. With analysis of user activity, we understand a broader perspective of the audience, much clearer than tracking transaction and volume flow

    Protocol activity is measured by analysing Staking and Token movement. We will look at both staking and unstaking transactions and NEAR volume, as we try to understand the net NEAR flow into ecosystem. Further, we will look at the Token movement, dividing it into P2P token transfers and DeFi protocol interactions.

    On the users size, we can look at what kind of usage of NearX do they make ? Is it as a way to efficient utilization of capital staked or just a passive staking position. We can differentiate on how v1 and v2 users differ in this aspect as Hack affected only the Liquid side of the protocol; Staked side was safe. Did Liquid activity reduce ? What kind of users returned post-Hack ?

    ==Conclusions:==

    Bouncing back from a Hack is hard. However, the metrics show remarkable resiliency from the Stader ecosystem. While TVL did take a major hit, with alot of exits following restoration of service. Staders Liquidity Mining program has brought back pre-hack adoption rates. A healthy ratio of Stader usage equally split between DeFi interactions and normal P2P movement, has been maintained. However, most users still see NearX as a mere Easy-to-Unlock Staking position on Near, willing to sit on it rather than maximise its productivity, a trend followed by both returning users as well as newer users.

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    ==Swaps on Ref==

    • 1.6 Million NearX volume has been swapped. The exploit NearX trades were ignored
    • Liquid nature of NearX is being used by the users, as the top token NearX is being sold into is wNear
    • On the other hand, the liquid nature of NearX also allows users to jump into a staking position
    • wNear is still the top token being sold to get into NearX, but other DeFi primitives like stablecoins being sold, implies that the Stader protocol is definitely empowering with its use cases
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