RWA Staking
The OAE framework introduces a unified staking mechanism, compatible with Xend OAE wallets and Xend Exchange wallets, designed to foster participation and support within the ecosystem.
There are 2 staking vaults with 4 distinct RWA staking options available in the OAE environment, each offering unique benefits and conditions
Staking vault, offering:
Standard staking
Lockups
PoS staking vault, offering:
PoS staking
PoS lockups
Standard Staking
In the OAE framework, RWA Standard Staking involves participants moving their RWA tokens into a specialized vault. Upon staking their tokens, participants start aggregating staking score, which quantifies their contribution based on the duration and amount of tokens staked.
The staking score is a crucial metric in the OAE framework, determining a participant's position within the ecosystem, features accessibility and the amount of RWA rewards they qualify for.
Participants can withdraw their tokens after a 48-hour cooldown period, counting from the time tokens have been staked.
RWA lockups
RWA Lockups offer participants the option to commit their RWA tokens to a lockup period ranging from 1 to 12 months. This form of staking is designed for those willing to secure their tokens over a predefined timeframe, enhancing the ecosystem's stability.
Upon initiating a lockup, participants immediately receive a staking score equivalent to what would be accumulated over the selected lockup duration. This approach ensures that the contribution is instantly recognized, although the accrual of the staking score pauses until the end of the lockup period, unless the maximum duration of 12 months is chosen.
Should participants decide to exit the lockup before the completion of the term, a 30% early exit fee is applied, calculated proportionally to the remaining duration of the lockup. This fee structure is intended to incentivize long-term commitment within the ecosystem, directly impacting the stability and security of the token economy.
Notably, once the lockup period expires, the mechanism automatically transitions the tokens into Standard Staking.
RWA PoS Vault
RWA PoS Staking operates similarly to standard staking and lockups but with specific adjustments geared towards validators.
PoS deposit requirement
Deposit to PoS vault is permissible if the total deposited amount meets predefined PoS minimum threshold or its multiplier (if validator runs more than 1 node). For example, if the minimum requirement for RWA tokens deposit to operate a validation node is set at 100,000 RWA, then only that amount, or its multiplication by natural numbers (e.g. 200k, 300k and so on) can be transferred to the PoS vault. It is not permissible to deposit an arbitrary amount to PoS vault such as e.g. 256,000 RWA tokens; the transfer must align with the required threshold for whole nodes, meaning either 200,000 RWA for two nodes or 300,000 RWA for three nodes. Validators wishing to stake amounts that don't meet these precise multiples have the option to engage in standard staking or lockup for the excess tokens.
Withdrawal and unlocking protocol
Withdrawals and unlocking procedure for PoS vault follow the same protocol as standard staking and lockups.
Slashing
PoS stakes are subject to slashing in instances of validator misbehavior or not meeting specific quality and uptime criteria.
Single ID rule
Each PoS staked amount is distinctly associated with a specific node and validator identity. Validators can operate multiple nodes under a single KYC ID, however a single identity is never allowed to validate a block twice, preserving the system's integrity.
Deposit threshold
The RWA stake needed to operate a single node will be set and adjusted periodically by Xend Finance, based on the network's changing needs and participant feedback. The threshold for PoS deposits required to run a validation node is separate from the staking score logic. While validators can lock in their PoS deposits to accelerate their staking score growth, the act of locking does not affect the minimum deposit requirement for node operation.
PoS Consensus
The consensus mechanism in the Asset Chain, especially in its current version, does not adhere to a conventional DAO protocol. Validators are not part of a dedicated DAO and do not participate in any voting on changes to the blockchain's core functionalities, including consensus rules and reward structures.
However, with the transition to V3 and validators operating through Xend browsers, the governance model may evolve, particularly as local IAC councils come into play. These councils could lead to a more localized management of the consensus and governance, tailored to meet regional regulatory and infrastructure requirements. For more details, please refer to progressive synchronization campaign section of the whitepaper.
Future details related to the PoS consensus model, including detailed block validation procedures and operational protocols, will be addressed in a dedicated technical document to be released by Xend Finance.
Staking Types - Visual Summary
For a comprehensive understanding of the staking mechanics within the OAE framework and their characteristics, please refer to the chart below.
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