The process of staking assets allows investors to lock their assets for a specified period, earning rewards in return.

When an investor stakes, their staking position is represented by an NFT (a unique digital token). This NFT includes all the details of the staking position, such as the amount staked, the staking time, and the rewards. Users can transfer or sell these NFTs. Once the position is fully unstaked, the NFT is destroyed.

You can handle your staking position by:

• Restake: Add more assets to your existing stake.
• Fully Unstake: Withdraw all staked assets after the unlock period.
• Partially Unstake: Withdraw a portion of the staked assets.
• Receive Rewards: Claim your earned rewards according to the distribution schedule.

📘

When you unstake, either fully or partially, your potential rewards are calculated and sent to you.

Packets: Simplifying Asset Handling

Traditional staking mechanisms typically require users to stake individual tokens or specific token combinations, leading to complexity in managing multiple asset types, especially when different ratios are involved.

The Evergon's Staking Protocol simplifies this to ensure that staking platforms are adaptable to any asset type requirements. Packets are used to simplify the handling of multiple types of assets in staking. Instead of staking individual tokens separately, a packet encapsulates a predefined ratio of multiple tokens. This means that a packet represents the smallest indivisible unit of the asset composition required for staking.

The Packets are Input Packet and Output Packet:

• Input assets to be staked: the staked assets are individual tokens or groups of tokens in specific ratios.
• Output assets as rewards: they streamline the distribution process by encapsulating the reward assets in a concise form.

Packets enhance flexibility for staking platforms creators, streamline the user experience, and ensure consistency and fairness. For users, staking becomes much easier. They only need to manage packets instead of multiple tokens.

Example

Packets are designed to encapsulate the smallest whole number of each related token while maintaining desired ratios, in the case of grouped assets (e.g. tokenA, tokenB, tokenC, etc.).

Consider a staking project requiring 70% of token A (ERC20) and 30% of token B (ERC1155 with ID 1). Traditionally, users would need to provide individual amounts and IDs for each of those asset leading to multiple checks and validations. With Packets, these complexities are simplified.

The staking pool creator can define a single packet that encapsulates the smallest indivisible value of the involved assets, maintaining the desired ratios among them.

For example: Packet = [7 token A, 3 token B with ID 1]:

When a user stakes by Packets, the only check required is amountOfPackets > 0. This means that once users approve the respective assets to the targeted Staking Platform, they can participate by submitting Packets instead of dealing with detailed information about each asset separately. For instance, if a user stakes 1000 packets, it automatically translates to staking 7000 token A and 3000 token B, streamlining the entire process.

Locking Assets and Tracking Staking Positions

When investors stake their assets in a staking pool, they create a staking position, represented by an NFT token. This token tracks their staked assets and rewards.

Each staking position is tracked by an NFT, which records:

• The ID of the staking pool.
• The amount of assets staked.
• The timestamps for staking and withdrawal.
• The rewards earned and received.

1. Stake Your Assets

Ensure that you have the required assets in your wallet. These assets must meet the input requirements based on the predefined amount required by the issuer, which may include specific tokens or a combination of tokens.

Investors determine the amount of the required assets they wish to stake and then complete the process. by following these steps:

• Before staking, you need to approve the staking platform to spend your assets. So you need to submit an approval transaction to allow the platform to lock your assets.
• Once approved, you can start to stake your assets.
• Select the asset that you want to lock for staking.
• Specify the number of assets you wish to stake, based on the predefined amount required by the issuer.
• Confirm the staking transaction. This will lock your assets for the specified duration.
• You can add more funds to increase your stake at any time, which will allow your rewards to grow.

2. Managing the Staked Position

After successfully staking, your position is represented by an ERC721 NFT LP token and you can:

• Add more assets to your existing stake if you want to increase the rewards.
• Withdraw some of the staked assets without closing the position.
• Withdraw all staked assets after the unlock period, effectively closing the position.
• Sell or transfer the staking position to someone else by transferring the NFT representing your stake.

3. Receiving Rewards

After the lock period ends, investors can claim the rewards they have earned from staking their assets according to the reward schedule, without needing to unstake their assets.