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Stake Abstraction

What is Stake Abstraction?

Stake Abstraction (Hyperstaking) enables smart contracts to participate in staking on Dusk, replacing the traditional model where only user keys are allowed to stake. This unlocks programmable and decentralized staking, allowing for automated staking pools, delegated staking services, and the creation of staking derivatives. With Hyperstaking, stake abstraction becomes a reality.

Hyperstaking works by enabling smart contracts to act as staking participants, just like regular users. This means that:

  • A smart contract can stake and unstake based on predefined logic within the contract.
  • Staking rewards earned by the smart contract can be automatically reinvested, distributed, or pooled.

This stake abstraction not only eliminates the need for manual staking management and the need to run a node to stake, but it also unlocks new staking models that enhances flexibility for both developers and users.

Use cases

Hyperstaking expands the design space for staking on Dusk, creating new ways for users and projects to engage with the network. Key use cases include:

Liquid Staking

Hyperstaking enables Liquid Staking, where Smart contracts can operate staking pools, where users delegate funds, and the contract manages the staking process automatically. This means that users are now able to stake without running their own node, while automatically collect rewards.

Sozu is the first project leveraging Hyperstaking, offering an automated staking pool that allow users to stake DUSK without the technical overhead of node operation. By utilizing smart contract staking, Sozu enhances accessibility while maintaining a trustless and decentralized environment.

Referral-Based Staking

Hyperstaking also enables referral-based staking models, where users who onboard others into staking earn a share of the staking rewards. This introduces a sustainable incentive structure that fosters network growth and encourages greater decentralization. More information about this upcoming project will be provided soon.

Other use cases

By providing stake abstraction, Hyperstaking unlocks new business models, including:

  • Staking-as-a-service platforms, where third-party providers facilitate staking for users.
  • Custom staking mechanisms, enabling projects to design staking-based incentives tailored to their ecosystem.

In short, the introduction of Hyperstaking on Dusk removes the limitations of traditional staking models and empowers smart contracts to redefine how staking works.

Deep dive into the technicalities of Hyperstaking here