# Hedera

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Stader’s staking solution for Hedera is HBARX, a liquid staking solution for HBAR on the Hedera network . With HBARX, Stader enables users to participate in other DeFi protocols and earn additional rewards while continuing to accrue staking rewards on their staked HBAR.

### Here's how it works!

#### **1. Deposit and Token Issuance** <a href="#id-1.-deposit-and-token-issuance" id="id-1.-deposit-and-token-issuance"></a>

When a user deposits HBAR into the Stader staking smart contracts, the protocol issues HBARX tokens back to the user based on the current Exchange Rate. These tokens act as a liquid representation of the user's staked HBAR, allowing them to maintain control over their assets without sacrificing potential staking rewards.

#### **2. Node Network and Reward Generation** <a href="#id-3.-node-network-and-reward-generation" id="id-3.-node-network-and-reward-generation"></a>

The HBAR from the pools is then allocated to the Hedera validators, a decentralized group of nodes that interact with the protocol's staking contracts. These nodes perform critical validation tasks for the Hedera network. The tasks performed by these nodes generates staking rewards.

#### **3. Accrued Rewards and Value Growth** <a href="#id-4.-accrued-rewards-and-value-growth" id="id-4.-accrued-rewards-and-value-growth"></a>

As the nodes generate rewards, these are accumulated and lead to an increase in the Exchange Rate of HBARX relative to HBAR. This growth mechanism ensures that HBARX tokens increase in value over time, reflecting the staking rewards earned from the HBAR staked.

In essence, HBARX offers a flexible, scalable, and profitable solution for the Hedera network staking. It enables users to earn rewards and participate in the DeFi ecosystem without locking up their assets. Additionally, HBARX supports a scalable and decentralized staking solution, contributing to the overall decentralization of the Hedera Network.

### **Why Stader?**[​](https://www.staderlabs.com/docs-v1/Ethereum/ETHx%20Staking/faqs#4-why-should-i-stake-with-stader) <a href="#id-4-why-should-i-stake-with-stader" id="id-4-why-should-i-stake-with-stader"></a>

Stader is an excellent choice for users looking to leverage decentralized finance (DeFi) opportunities, thanks to its unique features and proven reliability. Here's why you should consider Stader:

* **Expertise Across Multiple Chains:** Stader has demonstrated proficiency in deploying liquid staking solutions across a wide range of blockchains, including Ethereum Virtual Machine (EVM) and non-EVM chains. This extensive expertise allows us to deliver dependable and efficient services regardless of your chosen blockchain platform.
* **Prioritizing User Safety:**\
  At Stader, user safety is our top priority. We conduct comprehensive audits of our smart contracts to ensure their robustness and security, safeguarding against potential risks and vulnerabilities.
* **Access to the Best DeFi Opportunities:**\
  With Stader, users can explore top-tier opportunities in the DeFi landscape. Our liquid tokens consistently offer attractive returns, making Stader an ideal platform for users seeking to maximize their returns in DeFi.
