Architecture
Valdora Finance's Liquid Staking Protocol on ZIGChain is architected to enable seamless staking, liquidity, and yield generation for users holding ZIG tokens. The protocol is powered by two main smart contracts:
Staker Contract: The central contract that manages deposits, redemptions, and minting of stZIG tokens.
Ledger Contracts: These are individual contracts that handle validator interactions, manage delegations, unbonding, and distribute staking rewards.
The architecture is designed for decentralization and scalability, with multiple ledger contracts ensuring smooth distribution across validators and efficient handling of staking and unbonding requests
Actor
Role & Responsibilities
Delegators / Users
Stake their ZIG tokens through Valdora Finance to receive stZIG tokens. They retain liquidity, can trade stZIG, or use it in DeFi platforms while still earning staking rewards.
Node Operators / Validators
Secure the ZIGChain by validating transactions. They receive ZIG delegations from Valdora's Ledger Contracts and distribute staking rewards back to the protocol.
User Flows:
1) Depositing ZIG:
The user initiates a deposit transaction by sending their ZIG tokens to the Staker Smart Contract.
Upon successful deposit, the Staker Contract mints an equivalent amount of stZIG tokens.
The minting ratio is 1:1 initially and changes over time, so if you stake 100 ZIG, you receive 100 stZIG.
These stZIG tokens are ZIGChain's token factory denoms, allowing them to be transferred, traded on DEXs, or used in DeFi protocols.
The Staker Contract pools these tokens and initiates delegation to various Ledger Contracts.
2) Rewards Accrual:
Staked ZIG tokens generate rewards, which are auto-compounded and reflected in the stZIG token price ratio.
Rewards are periodically collected from Ledger Contracts using smart contract automated functions.
Smart Contracts ensures proper distribution and updating of stZIG value across validators.
3) Unstaking & Redemption:
Users have two options to exit their staking position:
Option 1: Trade stZIG on DEXs for instant liquidity.
Option 2: Redeem stZIG back to ZIG through the protocol, initiating a 21-day+ unbonding period.
During unbonding, funds are queued and processed through the Ledger Contracts, ensuring a secure and verifiable release.
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