Substake: Cross-chain Liquid Staking Protocol

Substake is a Cross-chain Liquid Staking protocol designed to enable seamless participation in liquid staking from Layer 2 (L2) funds. By leveraging Substake, users can deposit their wrapped/Native ETH tokens on L2, which our platform bridges to Layer 1 (L1) for staking on Liquid Staking Derivative (LSD) platforms such as Lido, Rocket Pool, and Stader Labs. Our solution is highly gas-effective, minimizing the bridging and staking costs for users. Currently Substake V1 is built for scroll zkEVM (L2).

Key Features

• Seamless Cross-chain Staking: Deposit wrapped or Native scroll ETH tokens on L2, and stake on LSD platforms without the hassle of managing different chains individually and hoping here and there between multiple dapps.

• Gas Efficiency: Substake significantly reduces gas fees by creating batches on L2s and equally distributing the bridging and staking costs among batch members.

• Regular APY: Users can enjoy a regular Annual Percentage Yield (APY) on their L2 funds without the complexities associated with traditional staking processes.

Working

Screenshots

Stake Flow

1. Deposit and SubToken Creation: Users deposit their funds on our platform and receive SubToken, a representational token. These deposited funds are accumulated in a batch, and when specific conditions are met, the batch is dispatched to L1. Gas fees are equally distributed among batch members, significantly reducing costs.

2. Bridging and Staking on LSD Platforms: After the bridging of tokens to L1, they are staked on LSD platforms, providing users with a regular APY. Transaction costs are efficiently partitioned among batch members, ensuring gas efficiency.

3. Native Token Unstaking: Substake facilitates the unstaking of native tokens in a similar fashion. Users deposit their Subtokens, a batch is created, and after meeting specific conditions, the batch is dispatched. The wstETH is then swapped for wETH and transferred to L2 for distribution.

Challenges Faced

While developing Substake, we encountered several notable challenges:

• Messaging Protocols: Understanding the messaging protocols of different L2 chains was a significant challenge. Scroll was the only chain that provided a well-built bridging infrastructure for ETH tokens, enabling successful staking.

• Batching Architecture: Implementing the batching architecture required deep thought and fine-tuning for an efficient solution. Messaging between chains also posed a tough challenge, with significant time delays for message transfers.

• Exchange Rate Calculation: Calculating the exchange rate between Subtoken and wstETH was complex, requiring continuous logging of wstETH price on L2, which was not fully supported by messaging protocols.

Contract Addresses

• L2Config proxy - 0x7BCaa65E6cAceF4FB7F2852488829bd92090667a
• SubstakeVaultProxy - 0xC4374cC35CbB2a42B9C19495AD811C742dc9FAA9
• SubstakeRouterProxy - 0x4ceBC071291125dffc07Fb2b57d2B96c9FB32bCD
• SubstakeLib - 0x7a5483542b602e130a05Db23a7E2AeC59b2F08C6
• Lib Address - 0x6EAFfb5d25e5e6a41C77e694cccB0603225BE7aD
• L1ConfigProxy - 0x24B6C8B950D964eEaF9A247a0e8539778757e449
• L1ManagerProxy - 0x4ceBC071291125dffc07Fb2b57d2B96c9FB32bCD

Demo

👉🏼 Demo video

Contact Us

For inquiries and support, please contact us at Anubhav Kumar