How it Works
For the purposes of this section, we will use ORA
as the paired dualSTAKE asset.
The ORA
dualSTAKE token is called oraALGO
.
- Each
oraALGO
unit is backed byALGO
at a rate of 1:1 - Each
oraALGO
unit is backed by an increasing amount ofORA
oraALGO
issuance is fully managed by a smart contract. Different tokens are managed by independent contracts, without co-mingling.
A typical user journey with a dualSTAKE token like oraALGO
would consist of:
- minting dualSTAKE (e.g.
oraALGO
) by depositingALGO
+ORA
- (later on) redeeming their
oraALGO
dualSTAKE tokens forALGO
+ moreORA
.
Between points 1 and 2, the dualSTAKE contract would receive staking rewards from block production, which are immediately swapped into the paired ASA, increasing the ORA
amount backing each unit of oraALGO
. The amount of staked ALGO
remains constant.
dualSTAKE supports farms, which pay out an additional amount in the paired ASA for each block produced, resulting in a higher APR. Farms are permissionless and can be created or extended by anyone.
Read more about minting or navigate to a specific section using the menu.