🌀Staking Mechanisms
Staking Mechanisms
User Deposits Staked Asset (e.g., ETH) and Receives LSDs:
Users initiate the staking process by depositing their staked assets (e.g., ETH) into the staking contract on Arbitrum.
Upon deposit, users receive Liquidity-Sensitive Derivatives (LSDs) representing their staked assets. These LSDs are minted by the staking contract on Arbitrum.
Rollup to Ethereum Mainnet:
Multiple staking contracts on Arbitrum aggregate transaction data and submit proofs to the Arbitrum Rollup.
The Arbitrum Rollup compresses and optimizes the transaction data and submits it to the Ethereum mainnet.
Proof-of-Stake (PoS) on Ethereum Mainnet:
Validators on the Ethereum mainnet verify the proofs submitted by Arbitrum, ensuring the correctness of off-chain computations.
Validated transactions are processed on the Ethereum mainnet, including the issuance of staked assets (e.g., ETH) into the deposit contract on Ethereum.
Withdraw (Once Available):
Once the staking period is complete or withdrawal conditions are met, users can initiate a withdrawal transaction.
The withdrawal process involves burning the LSDs, and users receive their staked assets (e.g., ETH) along with accrued interest.
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