# Liquid Staking on Aleph Zero

## Why Aleph Zero?

Aleph Zero provide a number of unique features which we believe make it a perfect match for the Ike protocol. Here are several reasons why we believe Aleph Zero is a network that will help us accomplish the Ike mission and vision. 

1. **Privacy-Preserving Technology:** Aleph Zero's employs the use of ZK-SNARKs to enable private computation on user-owned data records and enhances this with secure multi-party computation (sMPC). This model creates 'global secrets' controlled by smart contracts, allowing private multi-user interactions. This combined privacy approach facilitates the implementation of various multi-user systems, including private voting, auctions, and other DeFi activities. 
2. **Scalable and Secure Blockchain Network:** Aleph Zero's blockchain utilizes Directed Acyclic Graph (DAG) and proof-of-stake architecture to achieve a secured network offering instant finality, low fees, and enhanced scalability. Aleph Zero, moreover, is an asynchronous, leader-free, Byzantine Fault Tolerant network. 
3. **Developer-Friendly Environment:** Aleph Zero utilizes a Rust-based WASM programming environment to make it easy for developers who are already accustomed to the Rust and the Substrate stack to seamlessly adopt and build decentralized applications on the Aleph Zero blockchain. 

## Nomination Pools

Aleph Zero is a substrate-based blockchain, and uses the "Nomination" nomenclature for pooling Gas Tokens (AZERO) to Validators. For more information, see the [Polkadot's Wiki's page on Nomination Pools](https://wiki.polkadot.network/docs/learn-nomination-pools#roles).

## Nomination Agents

The Aleph Zero blockchain asserts a constraint that each Nomination Pool can be controlled by exactly one entity. Therefore, the [`Vault`](/the-ike-protocol/architecture/core-smart-contracts.md#the-vault-contract) cannot delegate to and redeem from all of them. In order to solve this, Ike employs smart contract accounts referred to as "**Nomination Agent(s)**" which nominate to Nomination Pools on behalf of the [`Vault`](/the-ike-protocol/architecture/core-smart-contracts.md#the-vault-contract).  These Nomination Pools then delegate stake to Validators as is normal on other DPoS chains. 

The nomination agents leverage unique **Substrate Runtime Calls** that speak directly to the consensus network to programmatically bond & unbond AZERO (staking and unstaking).  

## Daily Unbonding Request Limits

The Aleph Zero network asserts that no more than 8 unbond requests can be made by a Validator within any 14 day period. 

## Cooldown Period

The [cooldown period ](/overview/proof-of-stake-blockchains.md#cooldown-period)on Aleph Zero is 14 days.

## Architecture Sequence Diagram

This diagram illustrates the relationship between the different pieces 

{% @mermaid/diagram content="
sequenceDiagram
participant User
participant Vault
participant Registry
participant NominationAgent
participant NominationPool
participant Validator
participant Treasury

```
Note over User,Vault: Staking Process
User->>Vault: Deposit gas tokens
Vault->>User: Issue LST (receipt token)
Vault->>Registry: Check validator weights
Registry-->>Vault: Validator weight data
Vault->>NominationAgent: Delegate stake to agent(s), targeting registry weights
NominationAgent->>NominationPool: Delegate stake to pool
NominationPool->>Validator: Stake tokens via pool
Validator-->>Vault: Yield from staking rewards

Note over User,Vault: Unstaking Process
User->>Vault: Unstake LST
Vault->>User: Batch withdrawal request
loop Every 48 hours
    Vault->>NominationAgent: Initiate unstaking process
    NominationAgent->>NominationPool: Notify pool of unstaking
end
NominationPool->>Validator: Begin unstaking tokens
Validator-->>NominationPool: Confirm tokens unstaked after cooldown
NominationPool-->>Vault: Confirm unstaking process complete

Note over User,Vault: Governance and Fee Distribution
User->>Registry: Participate in quarterly validator elections
Registry->>Vault: Update validator weights
Vault->>NominationAgent: Notify changes in validator weights
NominationAgent->>NominationPool: Adjust stake as per new weights
NominationPool->>Validator: Distribute staking rewards
Validator-->>NominationPool: Deduct validator fee (5%)
NominationPool-->>Vault: Deduct protocol fee (2% AUM) and update redemption ratio
Vault-->>User: Distribute rest of rewards to User
```

" fullWidth="false" %}


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.ike.xyz/aleph-zero-network/liquid-staking-on-aleph-zero.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.