Staking

1. Overview

Deploy enables holders of its synthetic tokens (“dAssets”) — such as dUSD and dBTC — to earn yield by staking them into on-chain vaults. Each vault implements the ERC-4626 Tokenized Vault standard, allowing for transparency, composability, and integration with third-party DeFi applications.

When staking, users deposit dAssets into the vault contract and receive staked tokens in return (e.g., sdUSD, sdBTC). Over time, the vault accrues additional yield in the same asset (dUSD yield paid in dUSD, dBTC yield paid in dBTC).

Unstaking involves burning the staked tokens to receive the proportional amount of underlying dAssets, including any accumulated yield, after a cooldown period.

2. How It Works

Action	Input	Output	Description
Stake	dAsset (e.g., dUSD)	sdAsset (e.g., sdUSD)	User deposits dAssets and receives staked tokens.
Accrue Yield	—	—	Vault periodically receives yield inflows, increasing total assets.
Unstake	sdAsset	dAsset (after cooldown)	User requests withdrawal; staked tokens are burned after cooldown.
Redeem (optional)	dAsset	Underlying collateral	User may redeem dAssets later through the mint/redeem system.

3. Staking Lifecycle

Step 1 — Deposit

• The user stakes dAssets into the staking vault.

• The vault mints vault-share tokens (e.g., sdUSD) representing the user’s proportional claim on the vault’s balance.

• Deposits can be performed directly through the contract or through Deploy's web interface.

Step 2 — Yield Accrual

• Yield generated by Deploy’s delta-neutral funding-rate strategies flows periodically to the vault via the Controller Contract.

• Vault balances increase as new yield is added.

• The user’s sdAsset balance stays constant; their claim grows via an increasing exchange rate (totalAssets / totalSupply).

Step 3 — Unstake & Cooldown

• Users initiate an unstake request to withdraw dAssets.

• A cooldown period (~3–7 days) begins.

• During cooldown, withdrawal shares are frozen.

• Once the cooldown elapses, the user may claim their dAssets back.

Step 4 — Withdrawal

• After cooldown, the vault burns the user’s sdAsset and transfers back the proportional amount of dAssets.

4. Yield Distribution Model

Component	Description
Yield Source	Funding-rate arbitrage across decentralized perpetual futures markets (e.g., Hyperliquid, GMX).
Distribution Frequency	Periodic — typically daily or weekly, based on realized funding yields.
Distribution Asset	Same asset as staked (dUSD → dUSD, dBTC → dBTC).
Controller Contract	Aggregates strategy yield, deducts protocol and broker fees, then pushes net yield to vaults.
Vault Mechanics	Vault automatically compounds yield by increasing total asset value per share.