User Restaking
Last updated
Last updated
User Restaking Workflow:
Initial Transaction: Users initiate the process by sending BTC to a self-custodian vault. The transaction is time-locked, ensuring that the BTC remains secured and designated for staking purposes only.
Proof of Staking: The Bloom Protocol aggregates proof of these staking transactions, verifying the user’s commitment and the amount staked. This aggregated proof plays a crucial role in maintaining the integrity and trust of the restaking process.
Protocol Interaction: Once staked, the BTC supports the Bloom Protocol’s own Proof of Stake (PoS) system. This system is fundamental to the security and efficiency of the protocol, relying on the staked BTC to validate transactions and maintain network operations.
Token Minting: In return for staking their BTC, users receive an equivalent amount of staked BTC tokens (stBTC). These tokens represent the user’s staked value within the network and can be used for further financial activities.
Restaking and DeFi Participation: Users can then choose to restake their stBTC to compound their earnings or participate in various DeFi activities available on the protocol. This not only enhances their potential yield but also contributes to the liquidity and functionality of the DeFi ecosystem within Bloom.
