💡Introduction

A deep-dive into the technical solution that our team designed

As with most products in the crypto ecosystem, several approaches exist to go to market, with technical choices being made along the way. Certain design decisions are more decentralised but harder to implement or simply not feasible at the time of writing, while others can be considered more pragmatic and can be launched faster to service a user need.

Decentralisation vs Trust-based

One of the main priorities we focused on with this research was paying attention to both decentralisation in the solution, as well as solutions that are more pragmatic in nature but also require more trust in the issuer of the protocol. Mostly the BTC yield has remained custodial and based on trust in some of the solutions that we present. The principal (STX tokens) is designed to be completely trustless, but the actual yield is not always. Several options will be explored where a compromise is found between time to go to market and decentralisation.

In what follows, we will go over the components of liquid stacking that need to be developed to have a fully functional protocol that any user (whether you stack 100 STX or 1M+ STX) can leverage, guaranteeing the same benefits regardless of stack size.

Throughout the technical solutions, you will often find additional code examples that should be treated as pseudocode (even though the code will compile and has been tested). This example code can often be optimised further and is just one potential representation of the solution.