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Overview

Secret network is a delegated proof of stake chain. In such a type of chain, a user holding native coins ($SCRT for Secret network) can stake their native coins to a validator enabling the user to earn a passive income in form of staking rewards accrued from processing transactions by the validator.

At the time of writing this paper, there are 154.8 M SCRT in circulation and 101 M SCRT bonded with validators, which approximates to 65.5% SCRT tokens bonded.

At the current rate, around 29% is the APY on the bonded SCRT tokens.

Rewards given to the token delegator are given in form of SCRT token and the delegator has to stake the reward tokens manually in order to compound the staking rewards. This is not ideal due to two major reasons: the delegator has to do manual effort, the delegator has to pay transaction fees for each reward claim and reward staking. StakeEasy will provide the layer of smart contracts between delegator and validator which auto-compounds the rewards after a fixed interval without requirement of delegator intervention.

There is a 21 day lock period and once the SCRT is delegated, it cannot be used anywhere else during the period of delegation. This is done to protect against Long Range attacks on the network, read more here. StakeEasy will provide the solution that provides the user the ability to unbond immediately and still keep the low risk of such attacks.

Core features of StakeEasy are -

  • Ability to convert staked SCRT into seSCRT is done by issuing a staking derivative token which represents the user’s delegator’s stake and rewards accumulated.
  • This staking derivative token can be swapped with SCRT using a DEX supporting such pair.