The problem StakePot solves

StakePot tackles some of the main challenges for staking development:

• Low & Diminishing Rewards: As staking grows and there more tokens delegated, rewards will tend to be reduced due to node validator competition.

• DeFi Competition & Hidden Risks: As Rewards are no longer attractive; stakers tend to migrate to DeFi, putting themselves at risk in the DeFi world.

• Limited Network Economies: Users have limited benefits from further growth in the staking ecosystem as economies of scale cannot further be exploited by top tier networks.  

As an alternative to the current staking experience, we do believe that making staking more fun and engaging is the path to foster staking, increase crypto adoption, promote saving through staking and increase blockchain decentralization.

StakePot is a no-loss saving lottery  that allows AVAX holders to delegate their AVAX to participate in a daily prize consisting of the total daily reward generated by the entire user base stake.

Every day the entire community reward in the AvaPot is raffled among the wallets delegating Avax in the AvaPot. The more AVAX a user delegates the more chances they get to win the daily prize and the more AVAX the entire community delegates the higher the daily prize is.

Challenges we ran into

The first challenge we faced was the we need to run a daily raffle. To deliver this requirement, we used ChainLink’s Keepers, which are responsible for the automated and timely smart contract execution for the lottery smart contract.

The second problem was obtaining a truly secure random variable. To solve this, we used Chainlink’s VRF. The random variable is the key input for a truly random determination of the wallet that receives the daily prize.

The third challenge was determining the daily prize value. For this, we built a Vault that stores the staked AVAX and converts it into sAVAX while keeping track of the total AVAX deposited. Therefore, the vault calculates the AVAX value of the sAVAX held by AvaPot, and the difference between this AVAX amount and the users’ total deposits results in the daily prize. Once the winner is determined, the vault sends the excess sAVAX to the winner's wallet.