How Staking Works

Here's a step-by-step breakdown of the staking process on the CAGA network:

1. Connecting Your Wallet

• Start with a Compatible Wallet: You'll need a crypto wallet that supports the CAGA network (e.g., MetaMask, Trust Wallet).

• Connect: Navigate to the designated staking section within the CAGA dApp or website interface and connect your wallet.

2. Selecting Tokens and Staking

• Choose Your Tokens: Select the tokens you want to stake. CAGA staking currently supports CAGA and potentially other tokens like ETH.

• Specify the Amount: Enter the amount of tokens you wish to stake. Remember, becoming a validator may require a minimum stake (Currently 500,000,000 CAGA).

• Initiate Staking: Confirm the transaction in your wallet.

3. Issuance of Liquid Staking Tokens (cgETH, cgCAGA)

$$\text{Liquid Staking Tokens} = \text{Amount Staked}$$

• Upon Staking: Once your transaction is confirmed, you'll receive an equivalent amount of Liquid Staking tokens, such as cgETH or cgCAGA.

• Representation of Staked Assets: These liquid tokens represent your stake and the rewards it generates.

4. Utilizing Liquid Staking Tokens

• DeFi Participation: Unlike traditional staking, CAGA's liquid staking model allows you to use your cgETH or cgCAGA in various DeFi applications, such as:

  • Trading: Exchange them for other assets.

  • Lending: Provide liquidity on lending platforms.

  • Yield Farming: Strategically use them to maximize your returns.

Important Notes:

• Link to Live DApp: Include a direct link to the CAGA staking dApp for users to get started.

• Minimum Stake: Remind users of any minimum staking requirements, especially if a validator role is involved.