Tangle Liquid Stake Concepts

Liquid Staking on Tangle Network

Liquid Staking Workflow

1. Joining a Pool

• A user initiates liquid staking by joining an open pool using the join function. This transfers the specified bond amount to the pool and allows the user to start earning rewards.

2. Bonding Extra

• Users can add additional tokens to their stake using the bond_extra function. This can be done from free balance or from pending rewards.

3. Unbonding and Withdrawing

• When a user wants to exit the pool or reduce their stake, they can use the unbond function to unbond a portion of their stake. The unbonded tokens can then be withdrawn using the withdraw_unbonded function.

4. Pool Management

• The pool’s root and other designated roles can manage the pool’s operations, including updating roles, setting state, and adjusting commissions.

5. Commission and Rewards

• Pools may set up commissions to earn a percentage of the rewards generated by their staking operations. Users can claim their rewards based on the pool's configuration.

Conclusion

Tangle Network’s liquid staking mechanism provides a flexible and user-friendly way for participants to engage in staking while maintaining liquidity of their assets. The use of delegation pools, combined with advanced role management, commission structures, and unbonding processes, allows for a secure and scalable staking solution.