sToken

Features

• Support for both AVL and ETH
• Support for multiple chains using Hyperlane
• Liquid staking mechanism
• Rewards Mechanism using 1inch ERC20 Plugin.
• Rollup that manages the bridging using Stackr on AvailDA

Important Notes

• All operations perform various checks to ensure security and consistency (e.g., balance checks, authorization checks).
• The system uses both EVM addresses and AVL addresses, with a claiming mechanism to link them.
• Bridging and staking operations are multi-step processes to ensure proper verification and execution.

Possible Use Cases

• The liquid staking tokens can be integrated into various DeFi protocols such as lending platforms, automated market makers (AMMs), and yield aggregators.
• Users can diversify their staked assets across different chains, potentially reducing the risk associated with staking on a single network.
• By providing a bridge to Ethereum, the system can enhance the overall liquidity and utility of staked assets from other proof-of-stake networks.

I used stackr sdk for creating this project on AvailDA.

Key Components Include -

-- State Transition Functions (STFs)

1. Token Management

   • create: Create a new account
   • mint: Mint new tokens
   • burn: Burn existing tokens
   • transfer: Transfer tokens between accounts
   • approve: Approve spending allowance
   • transferFrom: Transfer tokens on behalf of another account

2. Bridging

   • requestBridge: Initiate a bridge request from Rollup to L1
   • fulfillBridge: Complete a bridge request

3. AVL Staking

   • bridgeAVLtoApp: Bridge AVL tokens to the Micro Rollup
   • claimAVLAccount: Claim an AVL account
   • requestStakeAVL: Request to stake AVL tokens
   • fulfillStakeAVL: Fulfill an AVL staking request

--Tech Stack

• Stackr + AvailDA - For the rollup
• NextJS - For the frontend
• avail-js-sdk - For the interactions for avail on the frontend.
• HyperLane - for the cross chain message passing
• 1inch ERC20 Plugin - for providing the rewards to the users for holding stokens.

-- 1inch Token Plugin

1. Time-Based Rewards

Users accumulate holding time for their sTokens. Longer hold times result in higher reward multipliers. Maximum multiplier (2x) achieved after one year of holding.

1. Reward Pool Management

Contract owner can set and update the total reward pool. Rewards are distributed proportionally based on user balances and hold times.

1. User Information Tracking

Stores user balances, last update times, and accumulated holding times. Automatically updates user information on token transfers, mints, and burns.

1. Claiming Mechanism

Users can claim rewards based on their balance and accumulated hold time. Prevents double-claiming through a mapping of claimed status.