Simply put, the GraveDigger is a Multi-chain liquid staking platform. A liquid staking platform is a decentralised finance (DeFi) solution that enables users to stake their assets while still owning a liquid token they can use to buy, sell or use for other DeFi activities. For Cosmos chains staking involves delegating your assets to a Validator to secure the blockchain. Staking typically comes with an ubonding period which varies from chain to chain. With, traditional staking systems, these assets are not liquid and accessible, making liquid staking platforms a much-needed and welcome innovation within the crypto world.
The GraveDigger allows users to stake their tokens and receive auto-compounding staking rewards while retaining the ability to trade or transfer their staked assets. This is achieved through the issuance of a token (bASSET) representing the staked assets, often referred to as a "liquid staked token" or "LST". These tokens can be freely traded, providing users with flexibility and liquidity.
In return for staking their tokens, users receive liquid staking tokens otherwise known as a bASSET (e.g. bWHALE) representing their staked assets. These LSTs are fungible tokens that can be freely traded or utilised within the DeFi ecosystem. As more staking rewards are earned and auto-compounded, the total value locked (TVL) in the staking pool increases. This growth in TVL positively impacts the value of the LSTs, as they represent a proportional share of the staking pool. This means that over time your bASSET grows in value compared to its underlying token. 1 bASSET can be redeemed for more than 1 of its underlying asset.
The GraveDigger does not have any deposit or withdrawal fees. Users are free to deposit and withdraw from the the GraveDigger for free, other than chain transaction fees which apply to every transaction on a blockchain.
Each GraveDigger has a 10% performance fee. This fee is taken from the staking rewards collected by the staking pool and is not paid directly by any users. The performance fee is 100% distributed back to the community with the BackBone Labs team receiving 0% of the performance fee. The GraveDigger is uniquely designed to bring value back to the community.
Validators that are selected to be part of the GraveDigger are strategically selected. Validators are chosen on a variety of metrics from performance, community engagement and assessment of their overall contribution to the chain and other projects.
{% hint style="info" %} If you are a validator and wish to collaborate and become part of the GraveDigger feel free to reach out on Discord or Telegram. {% endhint %}