Novel Liquid Staking

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Hatom Liquid Staking provides an innovative solution that allows users to earn staking rewards on their wTAO while maintaining liquidity simultaneously. When users deposit wTAO into the Liquid Staking Protocol, they receive swTAO, a receipt token that reflects their staked amount plus any earned rewards. This process ensures users can actively participate in various DeFi strategies to amplify the yield they can generate on their assets even more.

swTAO, received upon depositing wTAO into the Liquid Staking Protocol, is also known as a Liquid Staking Derivative (LSD) and represents the liquid form of staked wTAO. It symbolizes the tokens deposited plus any rewards generated. While the amount of swTAO remains unchanged in the users’ wallet, its value increases to reflect the accumulated staking rewards.

HswTAO, the receipt token issued upon depositing swTAO in the Hatom Lending Protocol, also called an HToken. It represents the rewards accrued from swTAO and the additional earnings from the supply APY in the Lending Protocol. Like swTAO, the quantity of HswTAO remains fixed in the user's wallet, yet its redemption value dynamically increases, mirroring the extra interest garnered from the Lending Protocol.

Liquid Staking enables users to earn staking rewards and actively engage in diverse DeFi strategies, such as leverage liquid staking, borrowing stablecoins, and opening long or short positions, all while keeping access to their TAO.

Once the user completes a liquid staking action and receives swTAO, this can be further utilized in various DeFi strategies, such as supplying the tokens to the Hatom Lending Protocol to earn additional yield, providing liquidity to exchanges to earn swap fees, or even farming the LP token created to generate more yield. Additionally, users will have the opportunity to mint USH, the native stablecoin of the Hatom ecosystem, once it becomes available. Alternatively, users can simply hold swTAO in their wallet, which accrues staking rewards without any additional action required.

Participation in Liquid Staking requires the deposit of wTAO into the protocol. After this deposit is confirmed, the TAO is staked with a Bittensor validator to earn staking rewards. The accumulation of these rewards not only increases the staked value but also raises the redemption price of swTAO, as these rewards are regularly reinvested back into the Liquid Staking position.

On the Liquid Staking page, first connect your wallet, then select the token you wish to receive upon staking. Enter the amount, click the 'Stake' button, and confirm the transaction in your wallet. Once the transaction is confirmed on the blockchain, you will receive swTAO at the current exchange rate. It's important to note that the quantity of swTAO received will be less than the original wTAO deposit. This difference is due to the exchange ratio between wTAO and swTAO, which reflects the appreciation in swTAO's value from staking rewards.

The Liquid Staking dashboard offers the option to deposit wTAO and directly receive either swTAO or HswTAO in the wallet. This process involves a series of transactions where the smart contract deposits wTAO into the Liquid Staking Protocol to acquire swTAO, then deposits the swTAO into the Lending Protocol to receive HswTAO. Additionally, HswTAO can be set as collateral through an additional action on the dashboard.

To unstake swTAO, you must select the "Unstake" function in the Hatom Liquid Staking dApp, enter the amount to be unstaked, and execute the transaction. Since there is no cooldown period, the wTAO will be instantly available in your wallet upon completion of the transaction, with no further steps required.

There is no cooldown period for unstaking requests. Once you confirm the unstake transaction, your swTAO or HswTAO will be instantly converted back to wTAO, which will be available in your wallet immediately.

wTAO is obtained when a user bridges TAO tokens from Bittensor to MultiversX using the official TAO Bridge developed by Hatom Labs. This process can be completed through the official website at (https://www.wtao.com/). wTAO can also be purchased from exchanges that feature liquidity pools for the pair, such as AshSwap or xExchange.

Liquid Staking rewards are automatically compounded into the swTAO price, eliminating the need for manual claim actions by the user. This auto-compounding mechanism ensures that all rewards generated from staking are reinvested, thereby incrementally increasing the value of swTAO over time. As a result, users are not required to undertake any specific actions to claim these rewards. When a user decides to unstake a certain amount of swTAO after a period, the amount returned will include the initial wTAO deposit plus all the rewards accumulated during the staking period, calculated based on the staking APY.

The Hatom liquid staking solution offers several security features, including:

1. ● Multiple audits and open-source code, with continuous review of all code to ensure its security.
2. ● Use of non-custodial staking service: the liquid staking smart contract does not hold wTAO; instead, wTAO is bridged to Bittensor and staked with validators.
3. ● Use of a DAO for governance decisions and to manage the protocol's updates.

Staking HTM Tokens in the Booster will boost your swTAO position that has been converted into HswTAO and set as collateral in the lending protocol. To reach the Optimal Boost, you must stake HTM Tokens equal to 10% of your collateralized position's value. If other assets are supplied in the lending protocol and they're also set as collateral, you'll need to stake HTM Tokens equivalent to 10% of the total value of all your collaterals within the lending protocol.

All Hatom products are accessible through various platforms within the MultiversX ecosystem, including xPortal, DeFi Wallet browser extension, the Web Wallet, and also the Ledger Wallet. To install any of these options, please follow this link: https://multiversx.com/ecosystem/projects-category/wallets.