What is STONE
Catalogue
How Can I Withdraw ETH with STONE
StakeStone’s Staking Mechanism
STONE in a Nutshell
STONE is a non-rebase ERC-20 token that has the same mechanism with Lido's wstETH in terms of yield generation. Non-rebase implies that the balance of STONE in your wallet will not increase. However, the value of STONE in ETH will increase as a result of the accumulated ETH staking yields.
For instance, if user A deposited 100 ETH for 100 STONE, and one year later, the value of 1 STONE becomes 1.04 ETH, the user can withdraw 104 ETH from StakeStone with 100 STONE.
STONE’s price refers to the price within the smart contract, NOT the price on DEX or information platforms like Coingecko. The price of STONE within the contract is the data used when users deposit or withdraw their ETH. Users can always redeem their ETH in StakeStone according to STONE’s price in the contract at the moment. The STONE’s price for deposit and withdraw can be found on StakeStone’s frontend at https://app.stakestone.io/u/stake.
STONE is also an Omnichain Fungible Token (OFT) based on Layerzero. This feature allows STONE to be seamlessly bridged across different chains. Additionally, StakeStone utilizes Layerzero’s solution to develop customized contracts, further enhancing STONE’s cross-chain compatibility.
The bridging of STONE accumulated in the Bitcoin ecosystem will be utilizing Polyhedra and zkBridge for the upcoming mainnet.
STONE’s address:
Ethereum Mainnet: 0x7122985656e38BDC0302Db86685bb972b145bD3C
Manta Pacific: 0xEc901DA9c68E90798BbBb74c11406A32A70652C3
STONE‘s Price
What is the Function of STONE’s Price in Contract?
Deposits and withdrawals in StakeStone are executed based on its internal price, rather than the DEX price. For instance, currently, if a user holds 1 STONE, they can withdraw approximately 1.0021 ETH via StakeStone's frontend.
How is STONE’s Price in Contract Calculated?
The price of STONE in the smart contract is determined by calculating two factors: the total value of underlying assets in StakeStone and the current total supply of STONE. These figures are completely transparent and can be verified on chain. The contract calculates the price of STONE by dividing these two numbers.
Where Can I Find STONE’s Price?
Visit the website: stakestone.io and launch APP, then users can find the price for 1 STONE at this moment. When processing unstake, users can also check the [Exchange Rate] for 1 STONE.
Why the price for STONE on DEX and information platforms is lower?
The price of STONE on DEX is determined by the composition and depth of the pool. When liquidity on DEX is insufficient, the price of STONE may become inaccurate, resulting in high price impact during swaps. Information platforms typically fetch the price from DEX to display. However, the deposit and withdrawal of STONE in StakeStone rely on the price within the contract, not the DEX price.
The gap between STONE's price within the contract and its price on DEX creates opportunities for arbitrage. Users can purchase STONE at a lower price on DEX and then exchange it for more ETH in StakeStone. For example, if the price of STONE in the contract is 1.1, and a user swaps 1 STONE on DEX for 0.8 ETH, they can then exchange that 1 STONE for 1.1 ETH in StakeStone.
More liquidity for STONE will soon be added on Manta Pacific, and it will solve the inaccuracy of STONE's DEX price.
How Can I Withdraw ETH with STONE
The amount of ETH withdrawn with STONE is determined by the price of STONE in the contract. StakeStone offers two methods for withdrawing/unstaking: [Request] and [Instant]
For the [Request] method, users can submit the amount they want to redeem. All requested ETH will be available to claim after the next settlement (usually occurring a few days later, depending on the total amount of ETH requested). The advantage of [Request] is that users can pay lower gas fees and experience reduced or no slippage, but the request will be pending for a certain period of time.
For the [Instant] method, users can withdraw ETH with their STONE immediately without waiting for the settlement. The advantage of [Instant] is that users can receive their ETH faster. However, users have to pay an additional gas fee and bear higher slippage. In some cases, there might be undeployed ETH left in the buffer pool, and these ETH can be instantly withdrawn without incurring extra gas fees and slippage.
StakeStone’s Staking Mechanism
When users deposits ETH into StakeStone, they will immediately receive STONE. Simultaneously, the received ETH enters the vault contract and awaits deployment. Once the deployment is executed, the ETH in the vault contract will be sent to Lido for stETH, which will then be kept in StakeStone’s strategy vault.
As mentioned, all stETH received are kept in StakeStone's strategy vault, and there is a possibility for these stETH to be restaked into Eigenlayer. However, it is important to note that STONE is compatible with restaking in terms of integrating restaking as the underlying assets, instead of using STONE as the asset for restaking.
STONE’s Bridging Mechanism
Based on Layerzero and StakeStone's customized contract, STONE has the following cross-chain features:
Cross-chain asset transfer: STONE is an OFT and its bridging is supported by Layerzero. StakeStone has also developed custom contracts to bridge STONE across different chains without burning it on the source chain. This means that STONE is locked in the contract of the source chain and can only be released when it is bridged back through Layerzero. This mechanism helps to ensure the stability of STONE's price within the contract.
Cross-chain price feed: The price of STONE is determined by the quantity of underlying assets and the circulating supply of STONE. At any given time, anyone can use Layerzero to feed this price information to the target chain, and developers can directly acquire and utilize this price within the STONE token contract.
Users can bridge STONE to and from the currently supported chains on StakeStone's website. It is important to note that the bridging from Manta Pacific to Ethereum Mainnet is currently disabled until the end of Manta's New Paradigm.
In the Manta New Paradigm, users can deposit ETH on the Ethereum mainnet and complete the process of "bridging" and "staking" in a single transaction. This means that users can quickly receive STONE tokens on the Manta Pacific chain without the need to manually bridge their STONE tokens.
For STONE accumulated in Bitcoin ecosystem, the bridging will be available alongside the launch of mainnet of BTC L2.
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