Staking Architecture

The staking architecture within Nodex is designed to incentivize long-term participation, secure the protocol’s infrastructure, and fairly distribute yield to contributors. It is comprised of several mechanisms that collectively allow users to earn rewards, govern the protocol, and participate in decentralized validation.

4.1 Single-Sided Staking

Users can stake NDEX tokens directly into dedicated smart contracts to earn protocol-native rewards. These rewards are distributed based on the staking duration, total staked amount, and the platform’s revenue performance. Lock-in periods are configurable, and longer commitments result in higher APYs. Staking pools are dynamically adjusted to reflect on-chain metrics such as TVL and circulating supply.

4.2 LP Token Staking

Liquidity providers who contribute to Nodex’s AMM pools (e.g., NDEX/ETH, NDEX/USDC) receive LP tokens representing their position. These LP tokens can be staked in yield farms to earn enhanced rewards in NDEX. LP staking aligns incentives between market depth and token circulation while encouraging users to bootstrap liquidity.

4.3 Auto-Compounding Vaults

An additional staking utility comes from automated yield vaults that compound rewards in real-time. These vaults are powered by smart contracts that harvest and reinvest NDEX emissions, thereby optimizing returns without manual intervention. Vaults are modular, allowing third-party developers to deploy custom strategies.

4.4 Delegated Staking & Governance

Stakers can delegate their voting power to governance delegates, ensuring their tokens remain active in governance processes even if they don’t vote directly. Delegation is non-custodial and reversible at any time. This system increases proposal participation and aligns decision-making with protocol stakeholders.

4.5 Validator Nodes (Planned)

In future protocol iterations, Nodex aims to implement a decentralized validator layer. Validator nodes will run off-chain services, contribute to oracle data integrity, manage block proposals for rollups, and maintain infrastructure availability. Validators must stake a minimum threshold of NDEX to operate and will earn performance-based rewards, slashed for downtime or malicious behavior.

4.6 Reward Mechanics

All staking rewards are sourced from the emissions pool defined in the tokenomics model. Emission rates are reviewed by the DAO quarterly and may adjust based on:

• Protocol usage metrics (TVL, number of users)

• Treasury health

• Token velocity

• Market sentiment

All staking contracts are open-source and audited, with transparent APY calculations accessible via on-chain oracles and subgraphs.

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