Rewards Distribution Process at Stake Together

Stake Together protocol follows a meticulous process for distributing rewards generated by Ethereum staking, ensuring efficiency and transparency. This process involves several steps, from depositing Ethers to the final distribution of rewards:

  1. Ether Deposit: Users deposit Ethers into the Stake Together contract. When 32 Ethers are accumulated, they are ready to be used to create a validator.

  2. Creation of Validators: With each accumulation of 32 Ethers, a new validator is created on the Beacon Chain. These validators are essential for the process of attesting blocks and generating staking rewards.

  3. Block Attestation and Reward Generation: Validators on the Beacon Chain perform their functions of validating and attesting blocks, the process through which staking rewards are generated.

  4. Partial Withdrawal and Accumulation of Rewards: Periodically, any accumulated value above the 32 Ethers required to maintain a validator (e.g. 0.1 eth) is transferred to the Stake Together router contract. This partial withdrawal process is defined by the Ethereum network and typically occurs at weekly intervals.

  5. Rebase Process: When there is profit to be processed from partial withdrawals, a rebase event is initiated. This rebase occurs based on the consensus of the oracles and normally happens daily.

  6. Waiting for Circuit Breaker: The oracle waits a specific period, known as a "circuit breaker", before executing the rebase. This period is a security measure to ensure system stability.

  7. Rebase Execution: Once the rebase is approved and ready to execute, the Ether from the Router contract is processed and transferred to the StakeTogether contract. This results in the value of all stpETH tokens in circulation increasing in proportion to each wallet's share of the pool.

This reward distribution process is designed to maximize efficiency and fairness in allocating earnings among staking participants. By using this method, Stake Together ensures that all stakers receive their fair share of the rewards generated, reflecting their contribution to the protocol.

Incentive Distribution Process at Stake Together

Stake Together has a specific method for distributing incentives to its users, ensuring a fair and transparent system. Here is a detailed description of this process:

  1. Accumulation of Incentives During Rebase: Throughout the rebase event, a fraction of stpETH is allocated to incentives, being accumulated in the protocol's Airdrop contract.

  2. Incentive Mapping: On the 5th of each month, accumulated incentives are mapped to prepare for distribution. This process determines the amount of stpETH that each user should receive, based on their accumulated stake.

  3. Redemption of Incentives by the User: To receive their incentives, users must access the Stake Together platform and redeem the incentive. This process requires users to connect to the platform with their Ethereum wallets and request to redeem accumulated incentives.

This incentive distribution system is designed to actively reward Stake Together participants, encouraging continued interaction with the platform. The protocol fosters greater engagement and a more dynamic community.

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