Stake DAO is a yield management platform that helps users maximize their yield on popular assets by harvesting and compounding rewards.
Stake DAO curates top yield farming strategies across DeFi into one simple-to-use dashboard. Users can start earning by selecting a strategy and depositing the corresponding asset. The platform recently released a new product, Liquid Lockers, that allows token holders of vote-escrow protocols (veTokens) to deposit their governance tokens to receive sdTokens, which is a liquid derivative of the underlying vote-escrow token. The current landscape for veTokens limits users to a choice between voting power or yield. With Liquid Lockers, users can unlock liquidity without having to compromise on yield or voting power. The depositing of veTokens for sdTokens is a one-way conversion, as the protocol will continuously relock the assets for the maximum duration (generally 4 years). As the Liquid Lockers accumulate more assets, and thus more governance power, the voting rights are granted to the respective sdToken holders. sdToken holders can stake them on Stake DAO to earn the native protocol fees, 8% of all boosted rewards, the ability to sell voting power for bribe fees, and additional SDT incentives.
Stake DAO takes a 15% performance for every strategy on its platform plus a 1% harvester fee. Of the 15% fee, 8% is redistributed to users staking in liquid lockers, 5% to SDT lockers (veSDT), and 2% to the DAO treasury. The remainder is distributed to strategy liquidity providers (LPs). The platform also administers a 0.5% withdrawal fee when users remove funds from a particular strategy and distribute all proceeds to SDT lockers (veSDT).
You can earn yield by depositing assets into one of the platform's yield farming strategies. SDT holders can stake on the platform to receive veSDT to earn a portion of all performance fees generated.