Token Description & Project Background

Stader is a liquid staking protocol that operates across multiple blockchains allowing users to maintain liquidity on their staked assets and earn rewards. When an asset is staked users receive a tokenized receipt that can be used across a decentralized finance ecosystem and represents the value of their locked and yield-bearing tokens. 

The protocol serves as a middleware infrastructure layer for various Proof-of-Stake networking, enabling users to leverage their yield-bearing assets across multiple chains. Currently, Stader supports over nine blockchains, including Solana, Ethereum, Avalanche, Terra 2.0, Near, BNB, Fantom, Polygon, and Hedera Hashgraph. 

The native token of the Stader Protocol is SD, which plays a role in governance and allows holders to earn rewards for providing liquidity to the platform. SD holders possess the ability to vote on protocol parameters and contribute to the future development and direction of the protocol. 

Stader Labs, the company behind the protocol, has its headquarters in Bangalore and Singapore. It was founded in April 2021 by Sidhartha Doddipalli, Dheeraj Borra and Amitej Gajjala. In January 2022, Stader successfully raised approximately US$12.5 million in a funding round led by Three Arrows Capital. 

Risks of SD

Like an investment in other crypto assets, there are some general risks to investing in SD. These include:  (i) volatility risk and liquidity risk, (ii) short history risk, (iii) demand risk, (iv) forking risk, (v) code defects, (vi) regulatory risk, (vii) electronic trading risk, and (viii) cyber security risk. For additional information of these and other general risks associated with crypto assets and Uphold’s platform, please refer to the Risks Specific to Holding Digital Assets statement.

In addition to these general risks, an investment in SD is subject to the following specific risks:

• SD operates using smart contracts, which have an association with vulnerabilities and security breaches. Despite undergoing successful audits by well-regarded third-party entities, it is essential to acknowledge the existence of inherent risks. Furthermore, the project’s future trajectory hinges on the decisions made by a global community of SD token holders. 

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with SD. Investors should conduct their own research and perform their own assessment before trading any crypto asset to determine the appropriate level of risk for their personal circumstances.

The SD community and Stader Labs are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of SD have no recourse to Stader community, Stader Labs, or Uphold if SD declines in value for any reason.

Changes to applicable law may adversely affect the use, transfer, exchange, or value of any of your crypto assets, and such changes may be sudden and without notice.

Uphold’s Evaluation Process

Prior to listing SD on the Uphold Platform, Uphold performed due diligence on SD and determined that SD is unlikely to be a security or derivative under relevant securities legislation. Uphold’s analysis including reviewing publicly available information on the following: 

• The creation, governance, usage, and design of SD, including ensuring the source code is open-source, audited and peer reviewed, security, and roadmap for growth in the developer community. 
• The supply, demand, maturity, utility, and liquidity of SD.
• Any marketing materials put forward by the SD social team including on, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.
• Material technical risks associated with SD, including any code defects, security breaches and other threats concerning SD and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them.
• Legal and regulatory risks associated with SD, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of SD. 

General

Uphold has prepared this Crypto Asset Statement based on publicly available information. Although Uphold has taken steps to obtain information from apparently reliable sources, information contained in this Crypto Asset Statement may be inaccurate, incomplete or out-of-date. This overview is a starting point for you to perform your own research prior to investing in a crypto asset.

Uphold users should read the Risks Specific To Holding Digital Assets statement for additional discussion of general risks associated with crypto assets made available through the Uphold platform.  

Canadian residents, please note that Uphold has filed an application for registration in certain Canadian jurisdictions but has not yet obtained registration. Until such time as Uphold obtains registration, Uphold has agreed to abide by the terms of an undertaking available at the following link. Please also review the Uphold Canada – Crypto Risk Statement for additional discussion of general risks associated with the crypto assets made available through Uphold Platform. Please be aware that statutory rights of action for damages or rescission in section 130.1 of the Securities Act (Ontario) and, if applicable, similar statutory rights under securities legislation in the other provinces and territories of Canada do not apply in respect of this Crypto Asset Statement or other disclosures on the Uphold website and Risks Specific To Holding Digital Assets statement. 

Last updated on June 21, 2023.