Decentralized Stacking Pools
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General Explanations

The Decentralized Stacking Pool involves creating a Smart Contract that will possess and handle all of the Stacking Pool’s functionalities.
The Smart Contract Deployer’s role is one of paramount importance, as it stakes funds to the Smart Contract instead of directly staking them inside the pox-2 contract.
The Decentralized Stacking Pool method involves pool participants delegating their funds to the pool and locking the minimum between their maximum owned and maximum delegated amount for just one cycle.
During the cycle, when a reward is sent to the PoX address of the Deployer, any pool participant is empowered to call a function that returns the amount of BTC (sats) transferred to that address and distribute the equivalent amount in STX from the SC deposit to the pool participants based on their weight in the pool’s total stacked amount. A percentage of the reward would be shared with the Smart Contract’s deployer because it locked that amount of STX to be redeemed by the other participants. This method allows the deployer to keep the BTC equivalent of the reward, while participants receive their share of the reward in STX. Users can also re-lock the newly rewarded funds directly and faster using this method. Overall, this method provides an easier approach to sharing rewards with participants and offers a way to keep funds more liquid.
The STX-BTC Bridge provides the necessary liquidity for both the miners and the stackers without needing to go through centralized exchanges to exchange STX to BTC. This ensures there is enough balance available to facilitate trades for both parties, helping to maintain the stability and efficiency of the overall system. Since both parties want to exchange their assets with each other, the liquidity will remain balanced in both xBTC and BTC in the Magic Bridge and also a stable amount of xBTC in the DeFi pool the Bridge is using from. This balance is crucial for ensuring that trades can occur effectively and without any disruptions.

Flow Decentralized Stacking Smart Contract STX and BTC distributions in-depth

Flow Stacking Smart Contract STX and BTC distributions + Flow Bridge combined with miners

Last modified 27d ago