LEEQUID
  • 👋 Welcome
  • Navigating LEEQUID
    • 🌱 Staking
      • The staking protocol
      • Matching stake to unstake requests
      • Potential wait times while staking
      • Deposited LYX lifecycle
      • Importing sLYX to your wallet
    • 🍇 Collecting rewards
      • Reward distribution in the LEEQUID protocol
      • Auto-compounding
      • Withdrawing rewards
      • Reward calculation in Proof of Stake
    • 🍂 Exiting the protocol
      • Option 1: swapping sLYX for LYX
      • Option 2: unstaking through the staking pool
      • Matching unstake to stake requests
      • Potential wait times while unstaking
    • 🍷 Claiming
      • Claim queued stake
      • Claim unstaked LYX
      • Claim rewards
    • 🔄 Swapping
      • LYX for sLYX: An instant alternative to staking
      • sLYX for LYX: an instant alternative to exiting
      • Providing liquidty
      • Providing Liquidity: a practical example
  • LEEQUID in depth
    • 🔐 Protocol security and risks
      • Security overview
      • Smart contract code correctness
      • Slashing and unexpected validator behaviour
      • sLYX token: economic balance
      • Validator key management
    • 📃 Smart contracts
      • Oracles
      • Merkle Distributor
      • Rewards
      • Pool
      • StakedLyxToken
      • FeesEscrow
    • 💧 The sLYX token
      • Acquiring sLYX
      • 1:1 ratio with LYX
      • Potential unpeg of sLYX from LYX
    • 💦 The liquidity pool (DEX)
      • Implementation
  • Incident Response
    • Contacts
    • Vulnerability Disclosure Policy
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  1. Navigating LEEQUID
  2. 🌱 Staking

The staking protocol

Last updated 1 year ago

When a user presses the stake button and confirms the transaction in the LEEQUID platform, the chosen amount of LYX is transferred from his account to the pool contract. The LYX will sit in the contract for a few minutes until the oracles detect it and initiate the registration of new validators, transferring that LYX to the official deposit contract of LUKSO.

An token called StakedLYX (sLYX) will be minted in the same amount as the LYX staked. This token represents ownership of that LYX and can be redeemed at any time. Sometimes, the minting of the sLYX token might not be instant, and instead the user’s staking request will be added to a queue for delayed minting of sLYX (see ). In this scenario, a claim action will be available for the user once his address reaches the end of the queue and the funds are transferred to the LUKSO deposit contract.

Below is a flowchart illustrating what happens inside the LEEQUID protocol when a user triggers a staking request by making a deposit in the Pool contract:

Notice that the process goes through a sequence of exit paths, which result in an immediate minting of sLYX. If it fails to enter any of the “escape” paths, the deposit is added to the dilution queue. The current value for minActivatingDeposit is 1 LYX and pendingValidatorsLimit is actually a percentage of the total activated validators, in this case defined as 10% upon the deployment of LEEQUID on mainnet. The protocol halts the minting of sLYX when the total pending stake is more than 10% of the total staked amount. Minting is resumed as soon as some of the pending stake is transformed into active validators (may take 1-3 days), shrinking the pending stake pool to below 10% of the total stake.

LSP7
dilution queue
Flow of the staking process inside the Pool contract