Staking Verification Services

The staking verification service is a set of algorithms based on the Bitcoin mainnet, called by SAL and executed by Staking Guardians. It checks the correctness and completeness of each staking transaction according to the staking transaction parameters defined in the Staking Parameter Matrix (SPM).

Staking transactions initiated by LST issuers must pass the verification by the Staking Guardian before being broadcast to the Bitcoin mainnet. This ensures that the staking transactions meet user requirements and guarantees that the number of LSTs issued is equal to the underlying BTC assets. This mechanism prevents errors or fraudulent actions by the LST issuer.

Unstaking transactions initiated by LST issuers should also pass the verification by the Staking Guardian, to ensure the BTC assets to go back to the user designated wallet, preventing possible asset loss on unauthorized actions.

The Staking Process

The Unstaking Process