ETHX is a liquid staking token that users receive when they stake their ETH through Stader. It represents the value of their staked ETH plus accrued staking rewards.
ETHX is a low-cap, fully collateralized asset. This asset is exposed to the underlying risks of Stader (ETHx), a protocol rated as Good.
ETHX has an uncapped supply but has inflation control or burn mechanisms in place. ETHX is backed by ETH staked on the Ethereum blockchain. ETHX is redeemable for ETH plus accrued staking rewards following an unstaking queue.
Stader is a multichain liquid staking platform for Proof-of-Stake blockchain assets that allows users to stake their asset without needing to lock assets or maintain the required infrastructure. This enables users to continue participating in DeFi activities related to lending and market making.
Users receive ETHX tokens when depositing their ETH into the Stader staking contract. Stader will calculate the current ETHX-ETH ratio (at the time of staking) and send the corresponding amount to the user. The ETHX represents the user's share of the total supply of ETH tokens inside Stader. It is a non-rebase token which means the balance in the user's wallet does not change. Instead, the value of the token changes as Stader earns staking rewards or incurs any penalties. There are no lock-up or minimum deposit requirements when staking through Stader.
ETH deposited into the Stader staking contract is subsequently delegated across both permissioned and permissionless validators that are part of Stader's multi-pool architecture. Users who wish to unstake must wait for the unstaking queue of 7-10 days. In the meantime, users can always exchange their ETHX for ETH through exchanges that offer liquidity like Curve's ETHX-ETH pool.