How does staking work?
Staking allows the user to delegate their tokens towards validating Proof-of-Stake transactions while earning staking rewards. Unlike traditional staking, ClayStack abstracts the process allowing you to stake without having to run validating nodes or without the need for staking expertise. Through a staking smart contract, you are able to stake your tokens and receive back liquid tokens that increase in value based on the staking rewards.
How does unstaking work?
Unstaking involves withdrawing tokens from a validator, and waiting for the unbonding period before they can be claimed. ClayStack gives you multiple possibilities to unstake your tokens at any time. ClayStack also brings you an instant withdrawal option, with Flash Exit you are able to unstake your tokens immediately. In addition, a big advantage of liquid staking is the flexibility of fully or partially getting your tokens back by trading your csTokens anywhere in the DeFi ecosystem.
What is liquid staking?
When you stake with ClayStack, you receive back csTokens in return. This csToken is fully liquid and gives you new possibilities while still enjoying rewards from staking.
Who holds my assets?
When you stake through ClayStack, the protocol will delegate the token in the chain's stake manager contract, where it will accrue rewards. The stake is spread across different validating nodes, but the validators have no access to the tokens. Those assets are protected by both the chain's stake manager contract and ClayStack's ClayMain contract.
What is a csToken?
csTokens are standard ERC20 tokens that represent the claim to both the underlying token and the staking rewards. Thus, csTokens continuously appreciate in value with respect to the underlying tokens.
What is the value of a csToken?
A csToken is worth more than the underlying tokens because its value includes all the accrued rewards overtime. Holding a csToken like csMATIC is like holding MATIC, but in addition it receives continuous staking rewards.
How frequently will I get rewards?
Rewards are constantly accrued. There is no need to claim rewards or to re-stake them. ClayStack protocol does it by default. Your csToken increases in value as you sleep.
How often does the exchange rate change?
You can expect price changes 1-3 times a day.
How can I use my csTokens?
Just owning csTokens is already giving you passive income from the staking rewards. You can always trade your csTokens. We will collaborate with other protocols to expand the use-cases for the csTokens, such as using them as collateral on lending protocols.
What is Flash Exit?
Flash Exit is one of ClayStack’s unique features that allows you to instantly withdraw your staked tokens. With Flash Exit there are no unbonding periods. What's best, fees from Flash Exit will increase the yield for the csToken holders!
What is the difference between Flash Exit and Standard Unstaking?
Flash Exit lets you instantly withdraw your tokens while in standard unstaking, you have to wait the "unbonding" period that can range from a few days to several months depending on the protocol. For Polygon's MATIC, the unbonding period ranges from 3-5 days.
Will I earn rewards during the unbonding period?
No. The moment you unstake, the csToken is burned and your unstake claim starts the unbonding process.
What are the risks of liquid staking?
When you stake you are still exposed to the underlying assets. Relative to stable-coins, a csToken is still a risky investment. Additionally, there are smart contract risks and some protocols carry a slashing risk.