sLA: The Derivative Layer of Liquid Staking for LA
1. Minting Logic
mint() → StakeVault
└─ 1. Validate that the user transfers LA ≥ minStake
└─ 2. Calculate the minting rate r = LA_pool / sLA_supply
└─ 3. Mint amount / r sLA to the user
• LA_pool: Total amount staked in the Vault in real-time
• sLA_supply: Current issued sLA
• Initial r = 1; as the Vault receives staking rewards, LA_pool ↑ → r ↑ → sLA exchange value rises accordingly
2. Redemption Process
redeem(sLA) → StakeVault
└─ 1. Calculate the LA to be refunded = sLA × r
└─ 2. Enter exitQueue, locking for one epoch
└─ 3. After expiration, transfer LA to the user and burn sLA
If the Vault lacks liquidity, the ReservePool automatically covers the shortfall and reclaims in subsequent blocks.
3. Risk Buffer
Source Mechanism Remarks
Validator Node Slash Vault bears 70%, InsurancePool bears 30% Ensures sLA assets do not default
Price Fluctuation sLA can be exchanged with LA in AMM Provides an instant exit channel
Liquidity Withdrawal Vault can activate SurgeMode to increase APY and attract back staking Parameters decided by Governor
4. Governance Power Mapping
• Holding sLA still retains governance voting rights, weight = holdings × r
• Prevents disconnection of interests between 'stakers' and 'governors'
• Voting snapshots directly read StakeVault.balanceOfAt(blockNumber)
5. Security Audit
• mint / redeem functions have undergone static analysis via Slither and fuzz testing via Echidna, no reentrancy, no overflow
• Vault deposit address uses Gnosis Safe multisig, with a 24 h Timelock to prevent misappropriation
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Through sLA, stakers can simultaneously earn validation rewards and DeFi liquidity; while the LA main coin centralizes staking and unified slash risk control through the Vault, ensuring network security is not affected by fragmentation.
