• it is act of storing your crypto currencties in exchange of rewards.
• this acutally helps the system to be secure
• recent ETH is moving from POW to POS and this uses 99.95% less energy
• in simple terms send tokens to some wallet/contract and earn rewards

When you stake your crypto assets, you become a transaction validator, or node, for the network. This is very important to the network’s functionality and security, which is why stakers receive financial incentives to keep doing it.

src: https://www.coinbase.com/learn/crypto-basics/what-is-staking

The reason your crypto earns rewards while staked is because the blockchain puts it to work. Cryptocurrencies that allow staking use a “consensus mechanism” called Proof of Stake, which is the way they ensure that all transactions are verified and secured without a bank or payment processor in the middle. Your crypto, if you choose to stake it, becomes part of that process.

• YT: https://www.youtube.com/watch?v=b7F9q9Jsfvw

  • Maths

    • (u,k,n) = reward earned by user u from k to n seconds

    Si - amount staked by user u at time = i Ti - total staked at time = i (assume Ti>0) R - reward rate per second (total rewards/duration)

    n-1 E Si/Ti * R i=k

    ^^ Uses lot of gas

    let's make some more case

    • When Si is constant = S for time k to n-1 n-1 r(u,k,n) = S * E R/Ti i=k

                  n-1         k-1
           = S *[ E   R/Ti -  E  R/Ti ]
                  i=0         i=0
      

  1st term in this ^ equation called reward per token

  2nd term is user reward per token paid

https://www.youtube.com/watch?v=oJOsdDJRNVw

forumula used n-1 E Si/Ti * R i=k

anon stake 100 token at 3 seconds and withdraw it's at 6 seconds

at R = 1000/sec

so using ^ folmula

i = 3 => 100/100 _ 1000 = 1000 i = 4 => 100/100 _ 1000 = 1000 i = 5 = 100/100 * 1000 = 1000 = 3000 Rewards token

Alice stakes 100 for 4 sec, Bob stakss 200 for 5 sec. At Reaward rate/sec R

Calculate r eward earned by Alice

Ro = 0 Rj = reward/token term

define reward/token at time j

      j-1
Rj =  E   R/Ti = 0 `if Ti is 0`
      i=0

when Ti = T for J0 <= i < j Rj = R@j0 + R/T(j-j0)

r@jo is prev value of [reward/token] = ris prev reward/token

• Just write the example of ^ mention video

Alice = r3,r9 Bob = r5,r11 Carol = r6,r10,r13

r3 = 0

r5 = r3 + R/100 (5-3) cause @ time t=5 total stake = 100 => r3 + 2R/100

r6 = r5 + R/300 (6-5) = 2R/100 + R/300

r9 = r6 + R/400 * (9-6) = 2R/100 + R/300 + 3R/400

r10 = r9 + R/300 * (10-9) = 2R/100 + 2R/300 + 3R/400

r11 = r10 + R/400 * (11-10) = 2R/100 + 2R/300 + 4R/400

r13 = r11 + R/200 * (13-11) = r11 + R/100

for Alice

• 100 * (r9-r3) => 100(2R/100 + R/300 + 3R/400)

for Carol

• 100 * (r10-r6) => R/300 + 3R/400
• 200 * (r13-r10) =>

for Bob

• 200 * (r11-r5)

https://www.youtube.com/watch?v=NsKZZ3OrlSA

Calculate reward per token

• r += R/ totalSupply *(currentTime - last update time)

Calculate reward earned by user

• rewards[user] += balanceOf[user] * (r-userRewardPerTokenPaid[user])

update user reward per token paid

• userRewardPerTokenPaid[user] = r

update last update time reward/token was calculated

• last update time = current time

update staked amount

• balanceOf[user] +/-= amount [+ for staking, - for withdrawing]

• totalSupply +/-= amount

build a decentralised pateron where any one can support there favorite creator and earn rewards token for supporting them seems cool na

• How this works

  • user come and stake [Matic] on a content creator

    • Learning Blockchain
    • Learing defi
    • creators for xyz

  • these staks generates rewards token and protocol distributed these rewards token in %

    • 70% goes to content creator

      • Benifits

        • getting rewards as this will get better as more and more use join his content
        • more staking on a contet more rewards from everyone
    • 30% goes to user who stakes

      • Benifits

        • user consume the content and enjoy and learn form it
        • also generate passive income by supporting the creator at same time getting value

Src: https://www.youtube.com/watch?v=vl4WRFo3hjg

for exampele: cost of 1 kg gold is 50USD to to create synthetix gold [S]GOLD you need to put 100 USD to it is 100% collateralised so

• if price increase of GOLD by 200 USD we need to 100USD to create [S]GOLD
• similarly if price decrease by 50 USD we need to put 100 USD to creat S[GOLD]

This is called over-collatralised colat

This acutally solve 2 big problems in crypto space

• no need to trust any one to "holds" for collatral because those are not acutal gold they are real time price of it

• or not to need it which is expensive

• what is synthetix protocol

  • A protocol that generates synthextix assets on ETH, it can be any things GOLD,SILVE,BTC,ETH.
  • So here we have SYX token and it higley colat so generally to create
    • 1$ worth of syn assest we need to 7$ worth of SYX

• Exmaple

  • Alice put 700 SYX to get 10$ worth of GOLD where is 10$ = [1] GOLD
  • Bob put 700 SYX to get 10$ worth of SILVER where is 5$ = [1] SILVER

  so total money in the system is 20$ which is called the the global debt pool

  ^ here both Alice and Bob contributed 50-50% each

  so some how price of silver exploed to 10$ =

  so as you can see gold is same 10$ and silver is 20$ so now bob hold 2 S[SILVER] his value is money is 20$

  so total the global debt pool worth around 30$

  but now ^ share of Bob > Alice

  but still alice owns the 50% of the global debt pool 15$ but she put 10$ so now she owe loss 5$ to system

  while Bob owns the 50% and he puts 10$ and now the global debt pool so he makes 5$ profits

  so this is the heart of synthetix where 1 person profit is others loss and this is called trading competition