How do stake pools work?

First, a HEX stake pool smart contract is deployed to the blockchain. Once deployed, the Mint Phase begin.

During the initial Mint Phase, anyone can join a pool by minting 1 pool token per 1 HEX pledged to the pool smart contract.

After that pools Mint Phase ends, a public function in the pool smart contract can be called which starts the stake. From the time the stake starts to the time the stake ends, stakers in the pool accumulate daily HEX yield.

When the stake period ends, a public function can be called which ends the stake, calculates the new minting/redemption rate, and activates the Reload Phase. During this phase, holders of the pool token have 3 options:

  1. Auto Restake - By simply holding the pool tokens through the Reload Phase, your HEX will remain in the pool and be restaked in the next stake period.

  2. Redeem - Holders of the pool token can burn them and redeem their value of the HEX principle + earned yield from the pool.

  3. Mint - During the Reload Phase, anyone can pledge more HEX into the pool and mint more pool tokens. The mint rate is equal to the current redemption rate during that Reload Phase.

Once the Reload Phase ends, the public function can be called again to start the stake and the cycle continues forever.

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