Staking Process
A crucial aspect of any Liquid Staking project is the staking process. For MilkyWay, the system is designed to be both efficient and secure.
Here’s a step-by-step breakdown of the procedure:
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Initiation: When a user stakes TIA on MilkyWay — the TIA is transferred from Celestia to Osmosis via IBC, then deposited into a CosmWasm Staking Contract.
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Calculation and Minting: The contract calculates the amount of milkTIA to provide based on TIA’s exchange rate. It then mints milkTIA and provides the user with milkTIA as a tokenized representation of the staked TIA coin. The milkTIA is sent to the user’s Osmosis account.
Sounds simple and familiar right? Now the user can use the milkTIA for other DeFi activities. But actually MilkyWay’s job continues when the user is merrily checking out various milkTIA usage options on our upcoming Discovery page.
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IBC Transfer Message: The contract then sends the user’s TIA from Osmosis to the Staker Multisig on Celestia.
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Monitoring: The Coordinator tracks funds moving from Osmosis to Celestia for MilkyWay transactions.
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Stake: The Coordinator stakes uniformly across all MilkyWay’s validators on Celestia using the Grantee’s account.