Staking Pool

Coming Soon 👷🏻‍♂️

Staking Pool

StakingPool is one of the most important pieces of the protocol as it handles the liquid staking of tokens. When a user stakes some amount of tokens (such as HYPE), they receive liquid staking tokens (such as stHYPE) at a 1:1 ratio. These liquid staking tokens represent a user’s staked balance and must be burned to withdraw the underlying tokens they represent.

Once tokens have been staked into the pool, they are deposited into one or more strategy contracts controlled by the pool. These strategies then take the deposited tokens and use them to earn rewards which are distributed to stakers.

In the case of HYPE staking, the tokens are deposited into the HYPE staking contracts.

The liquid staking token issued by StakingPool is a rebasing token so rewards will be automatically distributed to stakers without any action on their part. This is possible by using a “shares” accounting model where a share represents a certain percentage ownership of the pool. When a user stakes, they receive a number of shares determined by the ratio of total shares to total tokens in the pool. The amount of shares a user owns remains constant unless they stake or withdraw but the ratio of total shares to total tokens changes with each rebase so their shares will be worth more tokens after each rebase. The new token value of their shares will be automatically reflected in their token balance.

While unlikely, it is also possible for a rebase to be negative if strategies earned net negative rewards since the last rebase due to slashing penalties. In this case, each share will be worth less tokens so a user’s token balance will decrease.