LST-as-a-Service
The Suzaku Protocol is flexible enough to be used as a Liquid Staking Token (LST)-as-a-Service framework for Avalanche L1s.
How does it work?
Let's take the example of an L1 that wants to allow a partner to issue an LST of their native token $TOKEN using the Suzaku Protocol.
- The L1 team uses Suzaku Protocol's
DefaultCollateralFactoryto create a new collateral based on the $TOKEN used for the L1.
If the L1 native token is not deployed on the C-Chain, the L1 team can use Avalanche Interchain Messaging (opens in a new tab) (ICM) to bridge the native token of their L1 to an ERC-20 token on the C-Chain.
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The LST issuer creates a Vault accepting the new collateral and issues an ERC-20 token representing stakers' positions in the Vault, thus creating an $sTOKEN LST (name is arbitrary). The LST issuer becomes a Curator of the Suzaku protocol.
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The LST issuer registers as an Operator and opts-in to the L1 and their own Vault.
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The LST issuer (or a third-party provider acting as an Operator) is now a validator of the L1. Rewards emitted by the L1 can be distributed to the stakers of the LST or value-accrued by the LST.
Collaterals, Vaults, Operators are core components of the Suzaku Protocol. See the Protocol Specifications for more details.