Basic Functionalities
As of 02/01/2025
Delegate (Stake)
The Delegate function is triggered when users stake their EGLD in the Hatom Liquid Staking Protocol. The process follows these steps:
Activation of Delegate Function: When a user stakes EGLD in the Liquid Staking Protocol, the Delegate function is automatically activated.
Selection of Hatom Node Operator: The Hatom Liquid Staking Smart Contract selects a Hatom Node Operator to stake the EGLD. This selection is driven by a specific Delegation Algorithm to ensure a systematic and optimized choice of the node operator.
Staking Process and Token Minting: After the EGLD is staked with the chosen node operator, the protocol mints sEGLD, an interest-bearing token. This token is sent to the user as proof of their staked position, with its value equivalent to the staked amount.
Undelegate (Unstake)
The process of undelegating (unstaking) assets in Hatom Liquid Staking unfolds as follows:
Initiate Undelegate: Users initiate the undelegation process by sending their sEGLD back to the protocol.
Token Burn: The protocol burns the sEGLD, removing them from circulation.
Unstaking Process: The protocol starts the unstaking process for the equivalent amount of EGLD from the chosen validator, initiating the standard 10-day cooldown period.
Cooldown Period: While waiting for unstaking to complete, users receive an Unbonding Liquid Staking NFT, representing their position. This NFT can be sold on secondary marketplaces, offering immediate liquidity before the unbonding period concludes.
Migrate
The Migrate function in the Liquid Staking Dashboard allows users to easily transition between sEGLD and HsEGLD. This process enables direct conversion of sEGLD into HsEGLD (and vice versa) within the same dashboard.
Migrate to Collateral: Users can migrate sEGLD directly into their collateral account. The smart contract transfers sEGLD from the user’s wallet to the lending protocol, where it is immediately activated as collateral in the same transaction.
Reverse Migration: Users can migrate HsEGLD, which is already set as collateral, back to sEGLD with a single click. This action releases the collateral and processes its withdrawal from the lending protocol, streamlining asset management.
Migrating HsEGLD that is being used as collateral may affect your Borrow Limit Used, increasing the risk of liquidation. Ensure that your Borrow Limit Used remains within safe limits after migration to avoid damaging your position.
Unbonding Liquid Staking NFT
The Hatom Unbond NFT is a key innovation in Hatom's Liquid Staking Protocol, offering users enhanced flexibility and liquidity. This feature allows users to exit staking positions without waiting for the traditional cooldown period.
When an EGLD unstake request is initiated, the user receives a Hatom Unbond NFT, representing the staking position pending withdrawal.
During the 10-day cooldown period, the NFT can be sold on an NFT marketplace, enabling users to access liquidity before the cooldown concludes. Keep in mind that by selling the NFT, the new owner of the NFT will be able to claim the EGLD once the cooldown period is over.
Users can either hold onto the NFT until the end of the cooldown period to claim their EGLD or sell it on the marketplace, transferring the right to claim the EGLD to the buyer.
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