Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Ike plans to develop a decentralized Governance mechanism, to be set up as a DAO. This is currently on the future roadmap.
Many modern blockchains incentivize users to secure the blockchain via a consensus mechanism called Proof-of-stake (PoS). The native currency of these blockchains is called their native Gas Token, and they are used to execute transactions on the blockchain. On Aleph Zero, AZERO is the gas token that powers the network. The native staking of AZERO is what creates a decentralized and secure network.
As with any blockchain, all transactions have to be validated by a decentralized network of third party participants in a way that incentivizes all parties involved to uphold the integrity of those transactions.
In the Proof-of-stake paradigm, users can lock their own Gas Tokens up and use them as collateral while they validate transactions on the blockchain. This process is known as transaction validation, and those who practice validation are called validators.
In order to qualify to validate transactions, one must put up their own Gas Tokens as collateral - a process known as staking. These participants provide a critical role in securing the integrity of the blockchain. In return for this service, validators are rewarded with new Gas Tokens that are created by the blockchain as transactions are validated. Validators can therefore earn yield on their tokens that they’ve staked. However, if other participants on the network detect that the validator has asserted a transaction incorrectly or disingenuously, that validator forfeits the Gas Tokens that they staked. This mechanism keeps the validators honest.
This is an over-simplified explanation, and more information on Proof-of-stake can be found .
Staking provides a native mechanism for earning yield on the network’s native Gas Token. As a result, it provides one of the lowest risk ways for network participants to earn yield. This makes native staking yield the effective “risk-free rate” of the network with respect to the network’s Gas Token. This presents a few challenges:
Staking minimums:
Many Proof-of-stake networks require a minimum staked amount for validators to participate in validating transactions. This creates a barrier to entry for those who hold smaller amounts of Gas Tokens, as many participants don’t have enough Gas Tokens to qualify to earn staking yield.
Even when participants do have enough Gas Tokens to participate in theory, in many cases, there is an opportunity cost to staking, as locking up Gas Tokens precludes them from use in other network activities such as DeFi.
Delegated Proof-of-Stake (DPoS) networks allow any user to delegate their tokens to one or more Validators on-chain. The user can request that the validator un-stake and return the tokens to them. The blockchain itself enforces the integrity of this mechanism. This mechanism is known as "Delegation".
Note: Delegation is referred to in some blockchain ecosystems as "Nomination". In our documentation, these terms may be used interchangeably. For example, Polkadot and other Substrate-based blockchains such as Aleph Zero use the "Nomination" nomenclature.
Substrate-based DPoS blockchains include a construct called Nomination Pools. These are network-native entities to which users can "nominate" their Gas Tokens for staking. These Nomination Pools can then nominate one or more Validators to stake and validate on their behalf. For more information, see the .
The entity (a user of the blockchain) that controls each decides which to delegate to for staking.
Each on the blockchain, yield rewards in the form of new Gas Tokens are paid out to Validators. These rewards must be claimed, and sit in an unclaimed state on the blockchain until a Validator claims them. At any given time, there can only be a certain number of Validators that participate in staking validation, so the era’s yield is distributed equally to those Validators. Each Validator distributes its yield pro-rata to all addresses and contracts who delegated (nominated) to it. This is done at the network level, so Validators don’t have a choice in whether or not they distribute the proceeds back to those who delegated them.
Validators can take a commission fee for their service. Each Validator sets their own commission.
Gas Tokens sit in an unclaimed state at the network level until someone claims them and re-invests (re-delegates, or re-nominates) them.
Blockchain networks may enforce a delay between the time that a Validator themself executes an call, and when the network releases the tokens to that Validator. This is called a "Cooldown Period", and serves to, among other things, disincentivize Validators from constantly bonding and unbonding (staking and unstaking) Gas Tokens, which may clog up the network. This cooldown period may vary from network to network. You can find information about each network's Cooldown Period, if applicable, in that network's page in Ike's docs.
Furthermore, the network itself may limit the number of unbonding (unstaking) requests that a Validator can make per day, for similar reasons behind the Cooldown Period.
"Aleph Zero is a layer 1 privacy-enhancing blockchain that ensures scalability, low transaction fees, instant finality, and optimal security."
Aleph Zero utilized Directed Acyclic Graph (DAG) technology to create an efficient decentralized system that offers superior speed, validation time, scalability, and security.
Another key feature of Aleph Zero is its unique employment of both zero-knowledge proofs (ZKP) and secure multi-party computation (sMPC) to create an internet that ensures the security and privacy of user data.
Scalability remains a significant challenge for widely used blockchains like Bitcoin and Ethereum, with limited transaction processing capabilities and slow confirmation times. While some protocols claim faster speeds, they operate in closed environments, limiting their potential for widespread adoption. To overcome these limitations, the Aleph Zero platform ensures instant finality and efficient scaling at both the consensus protocol and smart contracts level. With higher transaction processing speeds and the ability to accommodate a large user base, Aleph Zero is well-suited for future on-chain applications.
Security is a significant concern in distributed ledger technologies (DLTs) despite the perception of their inherent security due to decentralization. While larger networks like Bitcoin may be relatively safe, smaller DLTs face daily attacks. Analyzing the security of consensus protocols is a challenge, considering vulnerabilities like double spending, 51% attacks, and Denial-of-Service attacks. Aleph Zero addresses these concerns with its novel AlephBFT consensus protocol. It can tolerate up to 33% malicious committee members without compromising validation, and transactions are confirmed with agreement from 67% of members. The network's asynchronicity ensures confirmation even during complete network asynchrony. Aleph Zero's decentralized and leaderless approach provides distributed denial-of-service resilience and allows for easy protocol recovery after network partitions, enhancing overall security measures.
The current privacy challenge at hand is the transformation of individuals into data commodities under current internet policies, prompting a demand for user control. Aleph Zero's solution is the employment of ZK-SNARKs to enable private computation on user-owned data records, while secure multi-party computation (sMPC) enhances this model by incorporating '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 DeFi protocols. Through these security measures, Aleph Zero addresses the challenge of data commodification, empowering users with greater control over their personal information.
The Ike protocol charges a small Management Fee for providing liquid staking services. The management fees will eventually go to the future Governance DAO's treasury, once Governance is launched. This Fees takes the form of sAO inflation. The mechanism is as follows:
Each time a user Stakes or Unstakes, the are updated on the Vault. These Virtual Shares are minted periodically, and go to the DAO's treasury.
The Ike Liquid Staking protocol automates the process by which users can pool their Gas Tokens together for network staking via non-custodial smart contracts. By leveraging a decentralized Registry of Validators controlled by the DAO, Ike creates sA0, a liquid version of the core AZERO gas token. As a PSP-22 token, sA0 can be used in DeFi and other on-chain uses cases, while the underlying AZERO is natively staked to earn rewards and secure the Aleph Zero network while simultaneously empowering the community to Stake & Use.
In addition to being liquid, unlike native staking, the super power of Ike and other Liquid Staking protocols is in their composability. This means that developers of novel on-chain use cases and the community as a whole can hold sA0 to stake, or collateralize it in other protocols so you don't need to forgo staking rewards while you DeFi.
Further, collectively the Ike protocol surpasses the minimum required amount of tokens to participate in staking, so there is no minimum stake to participate. No more "you must be this tall to ride." At the same time, those users can participate in other network activities such as DeFi, gaming, and more.
Traditional staking often requires a minimum staking amount, which can be prohibitive for users with limited capital.
Liquid Staking Tokens (LSTs) enable fractional ownership of staked assets. LSTs allow users to stake any portion of their Gas Tokens, even if they don't have enough to meet the minimum requirement of a particular staking protocol. Users can do this by pooling their tokens together with other users in order to meet the minimum staking requirements of the blockchain. By doing this, users earn staking rewards proportionally to their contribution.
Participation in network staking & validation traditionally requires users to have the extensive technical knowledge and infrastructure setup capabilities required to set up a Validator.
Liquid Staking Protocols allow any user to access staking services simply by interacting with contracts on the blockchain. This shortens, simplifies, and abstracts the process of staking. This is achieved by leveraging providers that offer Staking-as-a-Service. These providers take care of the technical complexities of running Validators.
This is a symbiotic relationship. The Liquid Staking Protocol provides Validators with access to mass amounts of Gas Tokens to use for staking. In return, the Validators facilitate network staking and take a commission fee on the yield generated before passing it back through the protocol to users.
LSTs represent direct ownership of staked Gas Tokens. Because of this, they can be considered "fully backed" by the Gas Tokens of the network. LSTs themselves are also fungible, so they can be used to participate in other network activities such as DeFi, gaming, lending, and more while simultaneously accruing value from the yield generated by the staked Gas Tokens they represent.
Because LSTs are liquid representations of yield-bearing staked Gas Tokens, they can themselves earn yield when used for DeFi activities such as lending. Thus, holders of LSTs have the potential to earn yield twice on the same underlying assets.
The Aleph Zero Foundation established the Ecosystem Funding Program initiative which supports projects that contribute to the growth and adoption of Aleph Zero ecosystem.
The Ike Protocol is a proud partner of the Aleph Zero Foundation through this program which supports our ability to build on the Aleph Zero blockchain.
You can read more about the Ecosystem Funding Program here:
Specifics to the Aleph Zero implementation of the Ike Protocol
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.
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.
Welcome to Ike Liquid Staking!
This documentation will regularly be updated to represent the current state of the project. This version was last updated September, 2024.
Ike is a Composable Liquid Staking Protocol. Our mission is to boost the GDP of Aleph Zero by allowing users to participate in on-chain activities while also benefitting from the yield-bearing staking that secures the blockchain. Ike solves a number of challenges faced by Proof-of-Stake blockchains around liquidity, accessibility, and more. No longer do on-chain protocols neeed to compete with L1 staking & security.
Traditional staking methods on Proof-of-Stake (PoS) blockchains can hinder participants from engaging in the broader realm of decentralized finance. Once tokens are staked, they become locked and inaccessible for other purposes, limiting users' ability to actively participate in the dynamic DeFi landscape. In PoS networks, security competes with the use cases built on the network such as leveraging decentralized exchanges, diverse lending and borrowing platforms, participating in governance mechanisms, gaming, and exploring other innovative decentralized applications.
If you have encountered a bug, we invite you to join the and visit the "Feedback" channel.
As staking rewards are generated by Validators, the newly created AZERO sit in an unclaimed state at the network level until the Validator claims them and re-bonds them.
Any community member can execute a transaction with the contract. This tells all of the participating Validators to claim then re-bond the claimed AZERO. This enables Ike to benefit from compounding yield rewards, and can happen at most once per .
Technically, any community member can execute the delegateWithdrawUnbonded function. If no community member does this, it will happen the time a user tries to redeem AZERO. There is no incentive fee for doing this.
Before going live with our open sourced code, we are building out the initial iteration of the Ike protocol using private repositories.
Please check this page again once Ike goes live as open source contributions will then be possible.
In the meantime, if you would like to be a part of the selective few who are building the foundation of Ike before going live, please fill out the following form for our team to review. We look forward to hearing from you!
(coming soon)
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.
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.
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.
The Aleph Zero blockchain asserts a constraint that each Nomination Pool can be controlled by exactly one entity. Therefore, the Vault 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. 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).
The Aleph Zero network asserts that no more than 8 unbond requests can be made by a Validator within any 14 day period.
The cooldown period on Aleph Zero is 14 days.
This diagram illustrates the relationship between the different pieces
5HkQP9ALF96q9ts4BiwK2Y2gXUmkG6DXp3iaoWDaWwoD3CSX
5EVG4pBDmAFfqa1ufMsggYXZndZwdE2cppPxhm14ZmPA5vaf
5Gf4hojYEDsLEJasGvQJPNfhrHwrSfCQCi7N7Fy2d4y3hV7B
5HXuEa8BXepDUeqqkAtbsq24zrSsUrU5DKYvf3Xh6MfWUwLe
We believe in building strong connections and fostering collaboration within our community. At Ike, we value the insights, contributions, and ideas from our users, partners, and supporters. There are several ways to connect with us, get involved, and stay up-to-date with the latest updates and developments in the Ike ecosystem.
Engage in meaningful discussions, share your thoughts, and stay connected with like-minded individuals who are passionate about the future of decentralized finance and liquid staked tokens. Join the discussion on our Discord!
Twitter: https://twitter.com/Ike_xyz
Discord:
The following directory will provide you with the appropriate email for you to reach out to our team directly. We are eager to connect and our team will get back to you as soon as possible!
Protocol Architecture & Functionality
Ike is a Liquid Staking Protocol. Our mission is to boost the GDP of Proof-of-Stake blockchains by allowing users to participate in on-chain activities while also benefitting from the yield-bearing staking that secures the blockchain. We do this by providing stakers with a liquid token which is backed by the blockchain's staked native gas tokens. We call this a Liquid Staking Token, abbreviated as LST.
This allows holders of AZERO to participate in on-chain activities using the sA0 in place of their AZERO tokens.
Ike improves on by allowing users to participate without themselves having to find and choose a validator to which to delegate. To accomplish this, Ike pools users’ AZERO tokens together and delegates them across a set of participating network for staking, and gives those users sA0 tokens (the collateral) that can be used to redeem their staked AZERO at any time. The protocol maintains a decentralized list of participating validators, routes staking requests to them, and facilitates redemption requests on behalf of the user.
These are the core contracts that make up the protocol along with their uses and functions.
VaultOrchestrates staking delegation & redemption: The Vault delegates staking tokens to, and interfaces with, Validators, according to the Target Weights stored in the Registry contract. This is done using Ike's Constant Retargeting Algorithm.
Calculates Protocol Fees: The Vault calculates and stores Virtual Shares used to facilitate protocol Management Fees. For more information, see the docs on Governance & Management Fees.
The Vault contract contains the Staking Functions and Unstaking Functions.
The Vault keeps track of a number of metrics. These include:
Total Pooled: The total of all AZERO staked via the protocol.
Total Shares: Denotes the total outstanding supply of sA0 created by the Vault
Virtual Shares: Denotes the Virtual Shares allocated for Management Fee.
Fee Percentage: Denotes the protocol's annualized Management Fee.
The Registry smart contract maintains a list of Validators that are actively participating in the Ike protocol, along with a set of Target Weights for allocation of staked AZERO to those Validators.
These weights represent the target percentage of the total amount of staked AZERO allocated to each Validator. These target weights are meant to uphold decentralization of the protocol, and will be set by Governance in a decentralized way.
The share_token contract is the core contract of the sA0 token. It is a PSP22 token contract.
General Inquiries
5D5sn5GPsYfNxjcFf1tWQV1hw3iN4GnsN2Voqs1vGpB8JjhF
5FZ35bwDiXEHdvdmRn2bfcvb2LB9K9pM1dJaSJzj3n4sDoLA
Terminology for the Ike Protocol
Gas Token: The native token for a given blockchain. For example, the Gas Token on Aleph Zero is AZERO. For more info, please review the page on Proof-of-Stake Blockchains.
sToken: A general form for Liquid Staking Tokens. sTokens are fungible, can be traded and used elsewhere on the network, and can be used to redeem Gas Tokens during the unstaking process.
sA0: Ike's Liquid Staking Tokens. sA0 serve as a receipt entitling the holder to their share of the Total Pool in the Vault. sA0 tokens are fungible, can be traded and used elsewhere on the network, and can be used to redeem AZERO during the unstaking process.
Validator: an entity on the blockchain that stakes Gas Tokens (AZERO), validates transactions on behalf of the network, and is rewarded with yield on their Gas Tokens in return for the service. For more information, see .
DEX: Abbreviation for a
Bonding / Unbonding: A process by which tokens can be "frozen" in exchange for some other benefit. This is commonly used to refer to the process by which the blockchain locks tokens up, or unlocks them, during the staking process. It can sometimes be used interchangeably with the terms "staking" and "unstaking".
Delegation (aka Nomination): Also sometimes referred to as "nomination", this is the process by which a user "delegates" another entity to do something on their behalf. In the case of Liquid Staking, users can "delegate" a "Delegation/Nomination Pool" to stake their tokens on their behalf with a Validator. Note that Ike does not use Nomination Pools, but rather nominates directly yo Validators.
Total Pooled: The sum of all AZERO currently deposited in the , plus all yield that has been compounded during network staking.
Total Shares: Denotes the total outstanding supply of sA0 plus the number of Virtual Shares eligible to be claimed by the DAO.
Total Virtual Shares: This represents the revenue entitled to the DAO. It denotes the number of sA0 that are eligible to be minted during the DAO Revenue Redemption Process. These are tracked on the Vault.
Total Shares Minted: The total outstanding supply of sA0. sA0 are minted during the and are burned during the .
Redemption Ratio: This is the ratio of totalPooled / totalShares. This ratio can be calculated at any time and is used to inform how many AZERO can be redeemed by a user for each sA0 token they submit during the process. This ratio can also be used by market makers to keep exchange rates honest on . Note: the Redemption Ratio is not stored as a variable, however theVault contract contains methods to calculate it in both directions (from sA0 to AZERO, and vice versa).
Era: A blockchain-native construct denoting the period that the Validator set (and each Validator's active delegator or nominator set) is recalculated and where staking rewards are paid out to Validators.
We at Ike aim to foster a vibrant and collaborative community that thrives on innovation, learning, and networking. Join us to engage with like-minded individuals, expand your skills, and contribute to the exciting world of decentralized finance (DeFi).
Participating in hackathons is a fantastic way to showcase your creativity, problem-solving abilities, and passion for blockchain technology. Our hackathons are designed to encourage developers, designers, and enthusiasts to explore the possibilities of Liquid Staked Tokens (LSTs) and build groundbreaking applications that leverage their power on Ike.
Our meetups bring together individuals who are passionate about blockchain, DeFi, and the potential of Liquid Staked Tokens. These events provide a platform for networking, knowledge-sharing, and thought-provoking discussions. Whether you're a blockchain enthusiast, a developer, an investor, or simply curious about the technology, our meetups offer something for everyone.
We value the input and ideas of our community members, and we're here to help anyone having with issues or questions about the protocol.
If you need assistance, we invite you to join the Ike Discord and visit the "Support" channel.
What are Liquid Staked Tokens (LSTs)?
Liquid Staked Tokens (LSTs) are a type of token that represents ownership in a staked asset, typically a cryptocurrency like Ethereum (ETH). LSTs enable users to participate in staking protocols while maintaining liquidity, allowing them to access the benefits of staking while still being able to use their tokens for other purposes within the decentralized finance (DeFi) ecosystem.
How do LSTs work?
LSTs are created by depositing tokens into a staking protocol, where they are locked and used to support the underlying blockchain network's consensus mechanism. In return, users receive a 1:1 ratio of LSTs that represent their ownership in the staked assets. These LSTs can be freely transferred, traded, and used within various DeFi applications, providing users with flexibility and liquidity.
What are the benefits of LSTs compared to traditional staking?
LSTs offer several advantages over traditional staking:
Liquidity: Unlike traditional staking, where tokens are locked for a specific period, LSTs allow users to maintain liquidity and freely transfer or use their tokens while still earning staking rewards.
Participation in DeFi: LSTs enable users to simultaneously participate in staking and leverage other DeFi solutions such as lending, yield farming, decentralized exchanges, and more. This allows for greater flexibility and the ability to maximize returns across multiple DeFi platforms.
Capital Efficiency: With LSTs, users can put their staked assets to work by utilizing them as collateral for borrowing or providing liquidity in decentralized markets. This maximizes capital efficiency and potential returns for users.
What is Ike?
Ike is a Liquid Staking protocol built for the Aleph Zero network.
What makes Ike unique compared to other LST projects?
Ike stands out in the LST space due to its focus on education, community engagement, and providing user-friendly experiences. At a technical level, Ike is focused on driving cross-chain interoperability and LST use cases to drive adoption. Ike also uses a floating redemption ratio which is algorithmically driven by realized harvested yield.
How can I get involved with Ike?
There are several ways to get involved with Ike:
Join the : Engage with the Ike community by participating in discussions, sharing ideas, and providing feedback. Connect with us through our official communication channels and stay up to date with the latest updates and announcements.
Contribute to : If you are a developer or have technical skills, you can contribute to the development of the Ike protocol. Check out our GitHub repository and explore opportunities to contribute code, provide feedback, or suggest improvements.
Is Ike open-source?
Yes, Ike is an open-source project. We believe in the power of community collaboration and transparency. You can find our codebase and relevant documentation on our .
How can I contact the Ike team for support or inquiries?
You can find these resources by visiting our and sections.
Is Ike's code audited for security?
Yes, ensuring the security of our users' funds and the integrity of our protocol is of utmost importance to us. Ike used pre-audited code from smart contract libraries such as Open Zeppelin. Additionally, the code will be open-sourced so the community is able to both .
Can I stake any cryptocurrency with Ike?
Ike supports the Aleph Zero network, allowing users to stake AZERO tokens.
How do I start staking with Ike?
To stake, you will need to follow a few simple steps:
Connect Wallet: Connect your compatible wallet to the Ike platform.
Choose how many AZERO to stake and click Stake.
Confirm Transaction: Review and confirm the transaction through your connected wallet.
Once the staking process is complete, you will receive your corresponding sA0, representing your ownership in the staked assets. These sA0 can then be utilized within the Ike ecosystem or transferred to other compatible platforms. For more information, see
What are the risks associated with staking and using LSTs?
While staking and using LSTs can provide various benefits, it's important to be aware of the potential risks involved. Some common risks include:
Volatility: The value of staked assets and LSTs can be subject to price fluctuations, which may result in gains or losses.
Security: As with any blockchain-based activity, there are inherent security risks. It's crucial to use secure wallets and follow best practices to protect your funds.
Smart Contract Risks: LSTs rely on smart contracts, and vulnerabilities or coding errors in these contracts can lead to financial losses. However, thorough security audits and best development practices mitigate these risks.
It is recommended that users do their own research, assess their risk tolerance, and seek professional advice if needed before engaging in staking or using LSTs.
Can I unstake my assets at any time?
You can unstake your sA0 at any time, subject to a 14-day wait time. This is enforced on the network level, and is not a part of Ike's design. For more information, see
How can I stay updated with Ike's latest developments?
To stay informed about the latest news, updates, and developments from Ike, we recommend:
Following our official social media channels, such as.
Checking our , which is regularly updated.
Can I transfer my sA0 tokens to other wallets or platforms?
Yes, sA0 is fungible, and can be typically transferred to other compatible wallets or platforms that support its usage.
Are there any fees associated with staking and using LSTs?
The Ike Protocol takes a small in return for providing the convenience and infrastructure for the Liquid Staking service.
How does Ike ensure the privacy of its users?
Ike values user privacy and employs measures to protect user information and transactional data. While blockchain networks are inherently transparent, Ike strives to prioritize user privacy within the boundaries of the underlying blockchain infrastructure by employing use of zero-knowledge proofs (ZKP). This enables individuals to have full control over their financial activities without compromising their sensitive information.
How can I provide feedback or report issues with the Ike platform?
Ike welcomes user feedback and actively encourages the community to contribute to the improvement of the platform. To provide feedback or report any issues, you can:
Join the official Ike community forums and participate in discussions.
Reach out to the Ike team through the designated .
Participate in , , and other initiatives that Ike may offer to incentivize and reward community contributions.
Technical architecture, core pieces, and system processes of Ike on Aleph Zero
Provide invaluable user feedback through our feature request form.
Open a support ticket for direct team and/or community support.
The core smart contracts that make up the Ike protocol are the Vault Contract and the Registry Contract. The function of each of these are detailed in the following page:
These are the mechanisms behind the core actions available to protocol users. In addition, the protocol itself executes certain processes behind the scenes in order to fulfill the desired functionality.
These are actions that are necessary for the protocol to function as designed, and any community member can execute them. They may offer incentives to community members to assist in running the protocol. They do not require staking or un-staking of individual tokens.
The motivation
We are driven by a bold vision to revolutionize the way individuals engage with blockchain networks, staking protocols, and the broader decentralized finance (DeFi) ecosystem. Our passion lies in the creation of interoperable liquid staked tokens (LSTs) that transcend the boundaries of single blockchain networks and traditional staking limitations. Through this transformative approach, we aim to empower individuals, enhance financial accessibility, and shape a more inclusive and decentralized financial landscape.
To achieve this, we engage in the following approaches:
LST Research and Development: Our team of experts is relentlessly exploring innovative solutions to unlock the value of staked assets and create a more dynamic and accessible staking experience. Through extensive research, rigorous testing, and constant iteration, we are pioneering advancements in staking protocols, liquidity mechanisms, and yield generation strategies.
Community Engagement: Community lies at the heart of Ike, and we believe in the power of collective action to drive positive change in the DeFi space. We actively engage with our community of innovators, builders, and enthusiasts in various ways, including hackathons, community meetups, and social platforms. We foster an inclusive and collaborative environment where ideas are shared, feedback is valued, and collaborations thrive.
Education and Awareness: By demystifying complex concepts and promoting best practices, we strive to equip our community with the knowledge they need to actively participate in the growing DeFi ecosystem. We engage in community discussions, host informative events, and collaborate with industry experts to facilitate a deeper understanding of the intricacies of cross-chain interoperable LSTs.
Partnerships and Collaborations: We recognize that collaboration is key to driving innovation and expanding the possibilities of DeFi. Ike actively seeks strategic partnerships with leading projects, platforms, and protocols that share our vision and values. Through these partnerships, we aim to foster interoperability, expand the reach of our solutions, and create synergies that unlock new opportunities for our users.
Liquid Staked Tokens (LSTs), which are liquid tokens that represent a user's stake, have emerged as a powerful innovation in the blockchain space, revolutionizing the traditional concept of staking and unlocking new possibilities for token holders. With their unique features and advantages, these liquid tokens offer a range of benefits that enhance the user experience and enable broader participation in the decentralized finance (DeFi) ecosystem. Whether it's maximizing yield, enhancing liquidity, lending, gaming, or managing risk, Ike empowers users to navigate liquid staking with efficiency, flexibility, and security.
Here are the advantages of LSTs and how Ike facilitates their utilization:
Maximizing Yield: Staking traditionally involves locking assets, and limiting their use in other financial activities. With LSTs, users can stake their tokens while simultaneously accessing the benefits of DeFi. Ike allows users to generate yield through lending, liquidity provision, yield farming, and other DeFi applications, maximizing their earning potential.
Enhanced Liquidity: Staked assets are typically illiquid, and it also has very limited risk. LSTs solve this challenge by creating a liquid representation of staked assets. Through Ike, users can obtain LSTs that maintain a 1:1 ratio with the staked tokens, allowing for seamless transfer, trading, and utilization across different platforms. Offering an elegantly decentralized base yield into the DeFi ecosystem allows the ecosystem to have the best of both worlds
Security: without staking, there is no network security. We need a significant token supply staked to efficiently process transactions, having a booming DeFi ecosystem shouldn't detract from that
It is important to note the specific crypto-economic factors that LSTs enable for broader access and utilization of the decentralized financial space. Unlike traditional staking models, the following features are made possible by adopting a liquid-staked model such as Kinstu protocol provides.
Fractional Ownership: LSTs enable fractional ownership of staked assets. Traditional staking often requires a minimum staking amount, which can be prohibitive for users with limited capital. LSTs allow users to stake any portion of their tokens, even if they don't have enough to meet the minimum requirement of a particular staking protocol. This fractional ownership model opens up staking opportunities to a broader range of users, regardless of their capital limitations.
Pooling Mechanisms: LSTs can leverage pooling mechanisms to aggregate smaller individual stakes into a larger collective stake. By pooling their resources together, users with limited capital can collectively meet the minimum staking requirements and participate in staking. Pooling mechanisms allow users to pool their tokens with others, combining their staking power and earning rewards proportionally to their contribution. This cooperative approach enables smaller holders to access the benefits of staking that would have otherwise been challenging to achieve individually.
As the Ike protocol continues to evolve and push the boundaries of liquid staked tokens (LSTs), the future holds exciting possibilities for users to unlock the full potential of their staked assets. Here are some envisioned use cases of what you will be able to do with Ike LSTs in the near future:
Trading with LSTs
With Ike LSTs, users will have the ability to trade their staked assets seamlessly and efficiently on decentralized exchanges (DEXs) and traditional cryptocurrency exchanges, allowing for increased market accessibility and potential trading opportunities.
Providing Liquidity on a DEX
DeFi Accessibility: Ike brings staked assets into the DeFi realm, enabling users to participate in a wide range of decentralized financial activities. Users can leverage their LSTs for lending, borrowing, providing liquidity on decentralized exchanges (DEXs), participating in yield farming, and engaging in other DeFi protocols. This opens up a world of opportunities for users to diversify their strategies and optimize their financial positions.
Interoperability: One of the key advantages of Ike is its ability to facilitate interoperability between different blockchain networks. By bridging the gaps between chains, Ike enables users to stake their tokens on one network and access DeFi opportunities on another. This seamless interoperability expands the reach and scope of LSTs, allowing users to leverage the strengths of multiple networks and tap into a wider range of DeFi services.
Capital Efficiency: With LSTs, users can unlock the value of their staked assets without sacrificing their staking rewards. Ike enables users to collateralize their LSTs and access lending markets, borrowing against their staked tokens to obtain additional liquidity. This capital efficiency empowers users to utilize their staked assets in productive ways while maintaining their staking positions.
Risk Management: The Ike protocol incorporates risk management mechanisms to protect users' assets. By diversifying staked assets across validators, Ike mitigates the risk associated with a single validator having poor uptime or high fees. Additionally, the protocol incorporates security measures and rigorous audits to ensure the safety of user funds and interactions with the DeFi ecosystem.
Privacy Preservation: Ike recognizes the importance of privacy in decentralized finance. The protocol incorporates privacy-preserving measures, safeguarding user information and transactional data. This allows users to engage in DeFi activities without compromising their privacy or exposing sensitive information to the public domain.
Modularity: products in web3 are more like hardware. Once deployed, they are very permanent. Upgradability is in itself a form of strong modularity, but the goal shouldn't ever be to replace the whole system. With plugin architectures, we are capable of designing systems that are intended to be built into and on top of. This provides both users and developers with a consistent platform to build with. Modularity of risk is also of paramount importance.
Lower Entry Barriers: LSTs reduce the entry barriers for users with less capital to participate in staking. It is worth noting that this changes a lot from blockchain to blockchain. Traditional staking methods may require users to lock up a significant amount of tokens for an extended period, which can be financially burdensome for smaller holders. LSTs offer more flexibility in terms of staking duration and allow users to access their staked assets more easily. This lower entry barrier makes staking more accessible and attractive to users with limited capital, enabling them to participate and benefit from the staking rewards.
Ike LSTs will enable users to participate in liquidity provision on decentralized exchanges. By providing their LSTs to liquidity pools, users can contribute to the depth and stability of trading pairs, earning fees in the process. This presents an opportunity for users to earn additional rewards while their staked assets remain actively participating in the staking process, maximizing their earning potential and overall capital efficiency.
Lending Markets
Ike LSTs will be instrumental in unlocking opportunities in lending markets. Users will be able to collateralize their LSTs and access lending platforms, borrowing against their staked tokens to obtain additional liquidity. This empowers users to utilize their staked assets as collateral without compromising their staking positions. Through lending markets, users can explore various financial strategies, such as leveraged trading or funding other investments, while their staked assets continue to earn staking rewards.
Gaming
The integration of Ike LSTs into gaming platforms opens up a whole new dimension of possibilities for gamers and blockchain enthusiasts. By utilizing LSTs, gamers can stake their assets to earn rewards and enhance their in-game experiences. Additionally, LSTs can serve as a bridge between gaming ecosystems and the broader DeFi space, enabling users to access decentralized financial services directly within gaming environments. This fusion of gaming and finance brings new incentives, monetization models, and economic opportunities to the gaming community.
These envisioned use cases demonstrate the transformative power of Ike LSTs, where users can seamlessly trade, provide liquidity, participate in lending markets, and engage in gaming activities while their assets remain staked and actively earning rewards. As Ike continues to innovate and expand its ecosystem, even more diverse and exciting use cases for LSTs are expected to emerge, enabling users to shape the future of finance and redefine the possibilities within the decentralized ecosystem.
Rollup Services & Restaking
More to come...
The team, mission, and values
The following statements have been adopted by the Ike team and act as a driving force in all we do. Every decision that is made by the Ike team considers whether it helps achieve our mission & vision and if it is in line with our values.
Our mission at Ike is to drive the next phase of decentralized finance, starting by developing liquid staked token (LST) protocols across zk-blockchain networks. Summarized well in his post titled, The Three Transitions, Vitalik talks about how blockchain will need to evolve to have trustless scalability, privacy, and a better user experience if we are going to achieve the lofty goals that make up the web3 movement as a whole.
We build core infrastructure. With a strong focus on building, monetizing, and decentralizing open-source infrastructure, we are able to maximize our impact and continue doing the work we've set out to do.
At Ike, our vision is to provide innovative solutions that enable users to seamlessly unlock the value of their staked assets and empower them to freely navigate between diverse blockchain networks, to access a wide range of DeFi applications, services, and opportunities.
By expanding the reach of Liquid Staked Tokens and pioneering its interoperability, we envision a world where users can unlock the full potential of decentralized finance, fostering financial empowerment and inclusion on a global scale.
Innovation: We are driven by a culture of innovation, continuously exploring new frontiers in blockchain technology and DeFi. We embrace novel concepts, push boundaries, and challenge the status quo to deliver cutting-edge solutions that transform the way users engage with decentralized finance. Our commitment to innovation fuels our pursuit of groundbreaking advancements and ensures that we remain at the forefront of the industry.
Interoperability: We recognize the importance of interoperability as the key to unlocking the true potential of decentralized finance. We are dedicated to building an interoperable protocol that facilitates seamless cross-chain interactions among LSTs, enabling users to transfer and utilize their staked assets across multiple blockchain networks. Our focus on interoperability aims to create a cohesive and interconnected DeFi ecosystem, where users can seamlessly access a myriad of opportunities regardless of the underlying blockchain.
Security and Trust: The security and trust of our users are of paramount importance to us. We are committed to implementing robust security measures and industry best practices to ensure the safety of users' assets and data. We strive to create a high level of trust within the Ike community and the broader DeFi ecosystem, promoting transparency, accountability, and reliability in all our endeavors.
Community Collaboration: Our community is at the heart of everything we do. We value the input, engagement, and expertise of our community members and actively seek their involvement in shaping the future of Ike. We foster a collaborative environment that encourages open communication, feedback, and the co-creation of ideas. Together, we are building a strong and vibrant community-driven ecosystem that drives the advancement of DeFi.
Stake: This call takes in the user's desired number of AZERO to stake, transfers them from the user's wallet to the Vault. It then mints the appropriate number of sA0 tokens to the user's wallet.
Request Unlock: This takes the users's sA0 tokens and burns them, then sends the unlock request to the Validators. This request is made by the user when they would like to start the unstaking process. The user specifies how many of their sA0 they would like to submit for AZERO in return.
Delegate Withdraw Unbonded: This tells each Validator to claim its unbonded amount, after that amount is made available to the Validator post-cooldown period. This sends all of the AZERO claimed by Validators back to the Vault.
Redeem: This method returns the user's available unstaked AZERO to their wallet from the Vault.
Compound: Anyone on the network can make a compound call. This sets off a command from the Vault that makes it all the way down to the participating Validators to claim then re-bond the claimed AZERO. This enables Ike to benefit from compounding yield rewards, and can happen at most once per . For more information on this, see .
Here is a non-exhausted list of commonly used functions.
Get Fee Percentage: Returns the current protocol.
Get Incentive Percentage: This returns the incentive fee given to those who execute the compound function.
Get Shares from AZERO: Returns the current value sA0 in terms of AZERO. This is constantly changing. For more information, see .
In addition, the Vault contract includes a number of basic getter methods for various values. For more information on these, see the contrat's interface on our Github.
Redeem with Withdraw: This is a wrapper function that executes delegateWithdrawUnbonded and redeem.
What happens behind the scenes when a user stakes or unstakes with Ike
Staking on Ike involves the following order of operations:
AZERO Deposit: User deposits AZERO into the Vault contract by initiating a stake transaction.
Validator Forwarding: Vault contract checks the contract to retrieve the current . Vault contract checks all participating Validators to see how many AZERO are currently allocated to each. The Vault uses these sums to calculate the Current Weights (the percentage of the Total Pool held by each Validator). Vault contract uses the to calculate how many of the newly submitted AZERO to forward to each of the Validators, and forwards them accordingly.
Receipt Token Issuance: Vault contract calculates the correct number of new shares (sA0) to create, using the current , and transfers them to the user. These sA0 serve as a receipt entitling the holder to their share of the . The sA0 tokens are fungible, can be traded and used elsewhere on the network, and can be used to redeem AZERO during the unstaking process. The number of new sA0 created, denoted here as newShares, is as follows:
where newStake is the number of newly deposited AZERO, totalShares is the and totalPooled is the .
To see how this translates into a user's experience staking on Ike, see our docs on .
As the accepts new AZERO for staking it must delegate them across the participating Validators in such a way that aims to keep the amount delegated to each Validator consistent with the stored in the . In order to to do this, the Vault retrieves the Target Weights from the Registry and compares them to the current percentages of the Total Pool held by each of the participating Validators at that time. The Vault then calculates how much of the newly added AZERO should be delegated to each Validator in order to bring the current weights closer to the Target Weights stored in the Registry.
During the un-staking process, the Vault again uses the Target Weights from the Registry to decide how many AZERO to redeem from each Validator.
Ike involves some clever mechanisms to enable unstaking at scale, despite network-level constraints such as the and .
Unstaking on Ike involves the following order of operations:
Initiation: User calls , during which they submit their sA0 to the Vault.
Vault Sends Unlock Requests: The Vault automatically sends unlock requests to the Validators based on the .
Cooldown Period: User must wait until is over so that Validators are able to unbond the AZERO tokens.
Tokens returned to Vault:
To see how this translates into a user's experience staking on Ike, see our docs on .
In order for the user to receive AZERO from the protocol, the Vault must make requests to each of the Validators, who in turn make requests to the Validators, to "" (unstake) AZERO from network staking. These requests are enforced by the network and by the protocol, but they don't happen immediately.
Vault, which can return them to users. Token redemption: This is where the user can redeem their AZERO, including accrued yield. In order for this to happen, the Vault must have custody of the unbonded AZERO. There are two scenarios here:
If the newly unbonded AZERO are still held by Validators when a user tries to redeem theirs, the user must call redeemWithWithdraw. This first executes a delegateWithdrawUnbonded call, during which the Vault collects the unbonded AZERO from each of the Validator, and then executes the redeem call, which forwards the user's entitled portion of those AZERO from the Vault to the user's wallet.
If the Vault already has custody of the AZERO, the user can make a call to the Vault, which sends the user's newly unstaked AZERO to their wallet. This scenario would happen when someone else has already executed the call for this era.
How Ike facilitates yield back to stakers.
Each Era, there is a certain fixed amount of yield generated by the network in the form of newly generated AZERO. The rate of yield is set by the network.
The yield accrues to the Validators, which must return it back to the Vault. This part is enforced by a mixture of Ike's smart contracts and blockchain-native mechanisms.
However, while the number of AZERO staked with the Vault increase, the number of outstanding sA0 does not. Remember, sTokens represent a share of the Total Pool of AZERO (totalPooled) controlled by the Vault. So, when the user redeems their sA0 for AZERO, they will receive more AZERO than they originally deposited.
This was a very simplified example. It doesn't account for any Protocol fees, and it doesn't account for other users staking and unstaking their tokens over time. However, it illustrates well the mechanism by which Ike helps users generate yield on their tokens. The example shows how yield came from the network's natural rate of AZERO inflation, and Ike helped the user access it easily.
Ike's sA0 tokens are fungible, and therefore allow users to participate in other network activities, such as DeFi. Many DeFi products allow users to earn additional yield through processes of lending, trading, and more. So, users who use sTokens to earn yield in DeFi can also take advantage of the network's natural staking yield at the same time. This is what we call composable yield.
Let's say for simplicity that the tokens accrued a 10% yield over that time.
Let's also say for simplicity's sake that no other users deposit any AZERO for staking, and of course no other user redeems any tokens.
At this point, the totalShares still = 10 sA0. However, due to the 10% yield accrued, the totalPooled now equals 11 AZERO.
Now, the user redeems all 10 of their sA0 for AZERO. They receive 11 AZERO in return.
Note that after this step, the Vault's totalShares = 0 again and totalPooled = 0 again as well.
We value the input and ideas of our community members, and we believe that collaboration is key to driving innovation in the decentralized finance (DeFi) space. We encourage you to share your thoughts on how we can enhance the Ike protocol and make it even more powerful and user-friendly.
If you have suggestions for us, we invite you to join the Ike Discord and visit the "Feedback" channel.
How to Stake, Un-stake, and earn yield with Ike
When a user stakes tokens with the Ike protocol, the experience is as follows:
User initiates a stake transaction with the Vault contract, in which they submit AZERO tokens to the Vault.
User receives sA0 from the Vault. The amount received depends on the current Redemption Ratio, which can be readily seen on the Ike dApp.
sA0 tokens are fungible, and can be traded on or used as a proxy for AZERO in other activities on the blockchain, such as DeFi applications, Gaming, NFTs, and more.
When AZERO tokens are staked with Ike, they are transferred to the contract. The Vault handles the rest of the process behind the scenes, including:
generating the new sA0 tokens and transferring them to the user, and
making sure the user's AZERO tokens make it downstream to for staking on the network.
For more technical information on how staking works behind the scenes, see Ike's docs on the .
Users can redeem AZERO from the Vault in exchange for submitting sA0 to the Vault. The number of AZERO received depends on the Redemption Ratio at that time, with respect to the number of sA0 they submit for redemption.
It's important to note that when using Liquid Staking, there will be a delay between the time that a user requests to unstake AZERO and when they actually receive them to their wallet. There are a few reasons for this, including native unstaking delays built into, and enforced by, the blockchain itself. The user experience is as follows:
Initiation: User executes an unstaking request by making a call to the Vault. When they call this function, they specify either how many sA0 they'd like to submit, or how many AZERO they'd like to receive.
Cooldown Period: Once the unbonding request is sent to the Validators, the users must wait for the . This is enforced by the blockchain itself, and there is no way around it.
Redemption: Once the Cooldown Period is over, the user can redeem their AZERO tokens to their wallet.
For more detailed technical information on how this process works, see Ike's docs on the .