Direct Staking
XSwap Direct Staking Overview
Last updated
XSwap Direct Staking Overview
Last updated
In collaboration with Chainlink we developed a direct staking solution designed to simplify the process of staking cryptocurrencies from any chain through liquid staking tokens. It integrates front-end systems with smart contracts to enable users to stake tokens such as Wrapped Ethereum (WETH) seamlessly across both Layer 1 (L1) and Layer 2 (L2) blockchains. The platform automates complex backend operations, ensuring that users can easily stake tokens and receive corresponding LSTs, all while keeping the technical complexities hidden from the user. The direct staking is available here:
Staking Example: Stake WETH for wstETH (Lido Protocol)
The platform provides a seamless user experience for staking WETH (Wrapped Ethereum) on Layer 2 networks like Arbitrum or Optimism and Base. Here’s how it works:
Stake WETH on L2:
Users stake WETH they hold on a supported L2 network.
Using the Fast Stake Option, users immediately receive LST tokens like wstETH (Lido’s staked Ethereum) from a liquidity pool in their wallet.
Backend Automation:
XSwap Direct Staking automatically handles the background operations of transferring WETH from Layer 2 to Layer 1 (Ethereum mainnet).
It then deposits this WETH into the chosen staking protocol (e.g., Lido), and bridges the resulting LST tokens (like wstETH) back to the user’s L2 wallet.
L1 and L2 Transfers:
This entire process is automated, and users can continue using their tokens while the backend manages the bridging between L1 and L2 using Chainlink's CCIP (Cross-Chain Interoperability Protocol) for efficient and secure cross-chain transactions.
XSwap Direct Staking offers users two distinct methods for staking their tokens, catering to both fast and high-volume needs:
Fast Staking via Liquidity Pool: This method provides immediate receipt of LSTs. Once users stake their WETH on L2, they receive their LST (like wstETH) instantly from a liquidity pool. This is a fast and efficient process, recommended for transfers where liquidity is available. This option ensures that users can begin utilizing their staked tokens immediately, without waiting for cross-chain transfers.
Slow Staking via Native Bridges: For larger transactions or when liquidity pools are limited, XSwap Direct Staking offers a second method.In this process, the staked tokens (like WETH) are transferred from L2 to L1, staked in the respective protocol (e.g., Lido), and the resulting LST tokens are bridged back to L2 using the native bridge. This method takes longer, and users will only receive their LST tokens after the full cross-chain transfer is completed. While slower, this option removes limits on the amount of tokens that can be staked, making it ideal for larger-scale staking operations.
Real-Time Updates:
Users can see their wallet balances in real time, including both their staked WETH and the LST they receive. The process is quick, usually taking about an hour for L2-L1 transfers (in Slow Staking Method), and users can monitor the progress.
Bridging and Smart Contracts
XSwap Direct Staking leverages advanced smart contracts to manage transactions across different blockchains:
Custom Sender and Receiver Contracts: These contracts manage the flow of tokens between users, liquidity pools, and staking protocols. Each supported protocol, such as Lido, has its own unique smart contract for interaction.
Cross-Chain Bridging: The platform uses Chainlink’s CCIP to bridge assets across L1 and L2 securely and efficiently. This ensures smooth transfers without any disruption to user experience.
Supported Bridges
Depending on the user’s needs, different bridges are used to manage transfers between L1 and L2:
Arbitrum, Optimism, and Base Bridges: For users on these Layer 2 solutions, specific encoding methods are used for cross-chain transfers, ensuring that the process is fast and cost-effective.
Native L2 Bridges: XSwap Direct Staking also supports the use of native L2 bridges, adding further flexibility to how users can stake their assets.
XSwap Direct Staking is designed to cater to various staking needs and scenarios:
Direct Staking (Lido Protocol Example): Users can stake WETH/ETH and receive wstETH/stETH instantly in their wallet without worrying about the complex operations of cross-chain transfers. This process is fully automated and user-friendly.
Future Use Cases: The platform is designed with flexibility in mind, allowing for new staking tokens, protocols, and even custom token transfers to be integrated as the space evolves. More use cases can be powered by the smart contracts used on the platform.
XSwap Direct Staking provides a seamless, intuitive experience for users looking to stake tokens and receive liquid staking tokens (LSTs) without dealing with the technical complexities of cross-chain operations. The platform offers:
Instant Staking Rewards through LST tokens.
Full Automation of backend operations.
Cross-Chain Compatibility between L1 and L2 solutions.
Transparent Fees and secure wallet integration.
With its advanced smart contract architecture and integration of Chainlink’s CCIP, XSwap Direct Staking is the go-to solution for anyone looking to stake their crypto assets simply and efficiently.
XSwap Direct Staking combines ease of use with powerful backend technology to deliver an efficient staking solution across multiple blockchains. Whether you’re a beginner or an advanced user, the platform's simplicity, automation, and support for popular protocols like Lido make it an excellent choice for staking and managing your crypto assets securely and transparently.
