Back to Projects

Token Staking Protocol

Yield generation through on-chain staking

Problem

Token holders want to earn yield but existing staking solutions are often opaque or require trusting centralized entities.

Solution

A transparent, on-chain staking protocol where staking logic, rewards calculation, and distribution are all verifiable on-chain.

System Architecture

Staking pool account holds staked tokens. Rewards calculated based on time-weighted staking. Unstaking requires cooldown period to prevent gaming.

On-Chain Responsibilities

  • Stake/unstake operations
  • Rewards calculation
  • Staking pool management
  • Cooldown period enforcement
  • Reward distribution

Off-Chain Responsibilities

  • APY calculation and display
  • Historical performance charts
  • Staking position tracking
  • Notification system

Wallet Interaction Flow

1

User approves token transfer

2

Stake instruction sent to program

3

Tokens transferred to pool account

4

Staking account created with timestamp

5

Rewards accrue over time

6

User claims or unstakes

Tech Stack

SolanaRustAnchorSPL TokenTypeScript

Tradeoffs

  • ▸Cooldown period limits flexibility
  • ▸Rewards calculation consumes compute units
  • ▸Requires active monitoring for optimal yield

Future Improvements

  • ▸Add multiple staking tiers
  • ▸Implement auto-compounding
  • ▸Create governance token for stakers
  • ▸Add slashing for misbehavior