how does multiPOS work?
btc staking on verbatim with state channels
validators lock their btc in state channels. this process involves creating a multi-signature wallet where the btc is held securely for the duration of the stake period.
verbatim issues zero-interest loans against the btc collateral locked in the state channel. this mechanism allows validators to obtain liquidity without selling their btc holdings. even better, the btc remains on the bitcoin network. there is no need for risky bridges or wrapping of assets. these loans are provided in verb tokens, which are then staked on the verbatim network.
when the user stakes, they create a hashed time locked contract with the staking amount and slashing amount. if no malicious activity is detected, both the slashing and staking amount will be paid back to the user when the user decides to exit the pool.
validator rewards are paid in verb on the verbatim network.
when the state channel is closed, the final state is settled on the bitcoin blockchain. the locked btc collateral ensures that validators have a financial stake in behaving honestly, as any malicious activity can result in slashing of their collateral.
eth and verb staking on verbatim
eth and verb tokens can be directly staked in the network.
staking and delegation
staking module: the staking module is the core component where validators stake their assets (btc, eth verb). this module handles the staking, rewards distribution, and slashing mechanisms.
delegation: token holders who do not wish to run validator nodes can delegate their staked assets to trusted validators. delegators earn a share of the rewards generated by the validators, while the validators take a commission for their services.
delegation process: delegators can choose validators based on performance metrics, reliability, and commission rates. this allows for a more flexible and inclusive staking ecosystem.
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