STONE Mechanism
Last updated
Last updated
Upon depositing ETH into StakeStone, the Minter contract mints STONE according to the exchange rate between ETH and STONE, as determined by our smart contracts, and sends the STONE directly to the user. Simultaneously, the deposited ETH is transferred to the StakeStone Vault, where it is held in reserve until deployment is triggered.
Deployment Process
Once the deployment is activated by the smart contract, the ETH in the StakeStone Vault is allocated to the Strategy Pool. This pool is composed of various underlying yield strategies, each proposed through OPAP. The distribution of ETH across these asset routes within the Strategy Pool is dynamic and rebalanced according to the allocation ratio determined by the Optimizing Portfolio and Allocation Proposal mechanism.
Governance and Rebalancing
The asset routes and its corresponding weight within the Strategy Pool is governed by STONE holders through OPAP, if and when the STONE community agrees on a new asset route, it will then be added to our Strategy Pool.
Execution and Management
After ETH is allocated to the Strategy Pool, it is utilized according to the designated strategies. For example, ETH might be staked to mint stETH, which could then be re-staked into EigenLayer, or withdrawn from EigenLayer and returned to the StakeStone Vault, depending on the strategic needs. These operations are executed securely by a multi-signature setup controlled by trusted partners like Cobo and Coincover, ensuring both security and transparency.
Utilizing STONE for Additional Yield
The minted STONE can be used to generate extra yield through STONE-Fi Pools. These pools allow STONE to be deployed across different chains via our cross-chain bridge, enabling users to earn LP rewards. Additionally, users have the option to lock their LP tokens within StakeStone's protocol to receive enhanced rewards, maximizing their returns while contributing to the ecosystem's liquidity and stability.
Omnichain Liquidity & Instant Withdrawals
Powered by Native's advanced liquidity infrastructure, StakeStone provides users and developers with seamless omnichain liquidity. Users benefit from instant, low-slippage withdrawals across any chain, while protocols can tap into strong, omnichain ETH liquidity through STONE's infrastructure. STONE not only ensures reliable exit liquidity across chains but also enables its use on any DEX without the need for deploying dedicated liquidity pools, allowing protocols to focus on development without the burden of bootstrapping initial liquidity.
Management of deposit, withdrawal and settlement
The StakeStone Vault acts as a buffer for deposited funds, holding the ETH within the contract until the next settlement, at which point it is deployed to the underlying strategy pool.
The StakeStone vault is only permitted to send ETH to the Strategy Pool contract, and does not allow anyone to unilaterally withdraw ETH out of the vault. Any deposit or withdrawal of ETH from the Strategy Pool contract has to be passed through OPAP by STONE holders, and the team does not have control over these funds.
Minting and burning of STONE
The Minter function decouples STONE token minting from its underlying assets. This separation allows for adjustments to the underlying assets without affecting the circulation of issued STONE tokens, ensuring a higher level of token stability.
Whitelisted asset yield routes
The strategy pool utilizes a whitelist mechanism governed by OPAP, ensuring high compatibility with various protocols and consensus mechanisms. Additionally, asset risks are isolated within each individual strategy route, effectively preventing cross-contamination of risks.
On-chain proposal to add new yield routes and optimize allocations
For more detailed description, please refer to the OPAP section.
