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Introduction

ClayStack is a decentralized liquid staking protocol that unlocks the liquidity of staked assets in Proof-of-Stake (PoS) networks. Users can deposit tokens in ClayStack’s smart contracts, which issues csTokens that are fully backed and fully fungible. These tokens increase in value as they receive staking rewards from the network.

Users can also utilize these tokens to participate in other DeFi protocols. The combined yield from staking rewards and participating in DeFi compounds over time, increasing yields for the user.

Access ClayStack at https://app.claystack.com.

csTokens

csTokens are standard ERC20 tokens that represent the claim to both the underlying staked tokens and the staking rewards. csTokens continuously appreciate in value with respect to the underlying token, abstracting away the complexity of staking, claiming and re-staking.

Users can opt to trade their csTokens instead of unstaking. As a result, they avoid unstaking fees and the need to wait for the "unbonding" period before getting access to their tokens.

Staking

The process of staking involves the transfer of the underlying token to ClayStack's smart contract, which in turn will mint csTokens at the current exchange rate and will stake the underlying tokens on trusted validators. The user's tokens are held securely at the chain's stake manager contract and at no point do the validators have accesses to such funds.

Unstaking

ClayStack's contract offers a direct unstaking mechanism, which leverages the PoS chain's unstaking system. In most cases, users will need to wait for a period of time before their tokens are made available. Depending on the protocol, this "unbonding" period can range from a few days to several months.

Flash Exit

ClayStack's contract offers a unique feature, Flash Exit which acts as a liquidity pool, where users can unstake and immediately receive the underlying tokens. In addition to providing immediate liquidity, the collected fees are retained thus increasing the exchange rate and improving the yield. The feature removes the need for any waiting period, with applicable fees and limits on the amounts.