# What is stkd-SCRT

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Staked SCRT (stkd-SCRT) is a liquid staking derivative built by Shade Protocol enabling users to secure Secret Network and other application protocols without exposing their privacy, all while earning staking rewards.&#x20;

Simply purchase or mint a liquid staking derivative (such as stkd-SCRT) and immediately start to privately accumulate staking rewards while simultaneously putting your staking derivatives to work with liquidity providing, lending, trading, and more.

The following is a list of stkd-SCRT features:

* Fungibility
* Privacy-preserving staking
* Automatic reward compounding
* Reduced slashing risk
* Improve Secret Network performance
* LP opportunities
* Lending opportunities

With stkd-SCRT, users are able to move, trade, and leverage their locked staking assets by minting or buying a liquid token representation of these underlying positions (in the form of stkd-SCRT). This unlocks an incredible amount of value for users, and helps power Shade Protocol and Secret Network DeFi.

#### <mark style="color:purple;">**Stk-SCRT governance**</mark>&#x20;

Governance logic exists within the staking derivative contract that will allow both SHD and stkd-SCRT tokenholders to be able to vote on Secret Network governance proposals. This is a unique feature that empowers Shade Protocol as an application layer protocol to partake in governance.

#### <mark style="color:purple;">**What's the difference between unbonding stkd-SCRT instead of selling it on a DEX?"**</mark>

When you unbond stkd-SCRT, a small withdrawal fee of (0.05%) is incurred. After 21 days, you will be able to claim $SCRT + all of the accumulated staking rewards. The downsides to this method are the following:

* Unbonding fee
* 21 days of unbonding

The alternative is to sell your stkd-SCRT on a decentralized exchange (DEX). The prices of stkd-SCRT on a DEX reflects the value of the underlying SCRT + accumulated staking rewards. Thus, you can sell and instantly realize the upside of the passively accruing staking rewards without needing to wait 21 days to unbond.&#x20;

The downside to this method are the following:

1. Trading Fee
2. Slippage