The Staking Process
A crucial aspect of any Liquid Staking project is the staking process. For RivusDAO, the system is designed to be both efficient and secure.
Here’s a step-by-step breakdown of the procedure:
Initiation: Once a user stakes WTAO on RivusDAO — the WTAO is transferred from Ethereum to Bittensor via RivusBridge, and then paid into the reserves/validators of Rivus DAO.
Calculation and Minting: The amount of rsTAO to be given out by the contract is calculated using WTAO’s exchange rate, then rsTAO are minted and given to the user, as a tokenized representation of the staked WTAO coin. The Metamask account of the user will receive it.
Every synthetic token listed as rsTAO in the platform ecosystem has an equal value with the original token, which in this case is WTAO. The reason behind this is ensuring that financial stability within this system remains intact.
1 rsTAO is fully backed by 1 WTAO.
By maintaining a 1:1 collateral ratio Rivus ensures that it remains solvent all along avoiding liquidity crisis. Once you exchange WTAO for rsTAO, this smart contract starts generating rewards automatically. In other words, you’ll start getting rewards right away too!
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