Polygon

Stader’s staking solution for Polygon is MaticX, a liquid staking solution for POL and MATIC on the Polygon and Ethereum networks. With MaticX, Stader enables users to participate in other DeFi protocols and earn additional rewards while continuing to accrue staking rewards on their staked MATIC or POL.

Here's how it works!

1. Deposit and Token Issuance

When a user deposits POL or MATIC into the Stader staking smart contracts, the protocol issues MaticX tokens back to the user based on the current Exchange Rate. These tokens act as a liquid representation of the user's staked POL or MATIC, allowing them to maintain control over their assets without sacrificing potential staking rewards.

2. Node Network and Reward Generation

The MATIC or POL from the pools is then allocated to the Polygon validators, a decentralized group of nodes that interact with the protocol's staking contracts. These nodes perform critical validation tasks for the Polygon network. The tasks performed by these nodes generates staking rewards.

3. Accrued Rewards and Value Growth

As the nodes generate rewards, these are accumulated and lead to an increase in the Exchange Rate of MaticX relative to MATIC and POL. This growth mechanism ensures that MaticX tokens increase in value over time, reflecting the staking rewards earned from the MATIC and POL staked.

In essence, MaticX offers a flexible, scalable, and profitable solution for Polygon staking. It enables users to earn rewards and participate in the DeFi ecosystem without locking up their assets. Additionally, MaticX supports a scalable and decentralized staking solution, contributing to the overall decentralization of the Polygon network.