Building uniIOTX: Designing A Solid Delegation Model

The beta launch of uniIOTX happened in November 2023, marking the first liquid staking protocol built on the IoTeX blockchain. This launch was groundbreaking for the IoTeX ecosystem as it marked the first of its kind liquid staking protocol to be built on the IoTeX blockchain. With uniIOTX on Bedrock, users are offered enhanced user flexibility and experience as they can now easily access staking rewards from their IOTX tokens. This launch also opened up a new avenue for users to earn passive income and significantly increased the utility of IOTX tokens.

Making a DApp Stand Out

When designing uniIOTX, many factors came into consideration. Primarily, we aimed to build fair, transparent, and optimized staking rewards for users. The staking process also had to be seamless and simple for users. Ultimately, our goals can be encapsulated in the following points.

  • Simplified Staking Process: We strived for Bedrock to offer a refined staking experience, eliminating the complexities of Delegated Proof of Stake associated with IOTX. To do so, we would handle all dealings with the IoTeX blockchain, leaving users to simply mint uniIOTX with their IOTX tokens to start earning staking rewards.
  • Optimized Returns: To provide optimal profitability for users, we allowed users to bypass the manual task of allocating specific IOTX amounts to various validators with the consideration of multiple staking periods and delegation strategy.
  • Assured Transparency: Keeping in line with our core value of transparency, Bedrock was built in such a way that every transaction is fully transparent and traceable on the blockchain.
  • Air-tight Security: One of our key priorities when building this dApp was security. uniIOTX upholds the highest standards of trust with a thorough code audit by PeckShield. We also employ measures to ensure decentralization, further promoting security.
  • Instant Liquidity: To make the experience as seamless for our users as possible, Bedrock grants users uniIOTX immediately upon deposit, allowing for both instant liquidity on staked IOTX and continued staking rewards.

Focusing on the above points allowed us to build something as close to ideal for the beta launch as possible.

Another key focus following the beta launch was the unstaking requirement of 1 million IOTX. We recognized this as a high barrier for many users, so to circumvent this, we have partnered with the DEX Mimo. uniIOTX users can now swap their tokens directly on Mimo, allowing them to get around the 94-day unstaking period and 1 million token requirements. 

The Design of the Delegation Model

The delegation model of a PoS blockchain is a system whereby users can delegate their tokens to validators to receive staking rewards. With the delegation model, users can participate in the proof of stake consensus process by delegating their tokens to validators, who are then responsible for verifying the transactions on the blockchain and maintaining the network. With a liquid staking model such as Bedrock’s, we designed a model that would best serve the community in a fair, decentralized and transparent manner while maximizing token rewards. Ultimately, we took into consideration three key considerations in building the design model.

  1. Decentralization
    To maintain decentralization, we vote for the validators that are ranked between 10 and 36. This helps to avoid the centralization of large validators.
  2. Rewards Maximization
    The commission fee charged by validators has to be lower than 5%, effectively maximizing users’ rewards.
  3. Transparency
    The validators have to be using Hermes, an open-source rewards management system designed by the IoTeX team, to ensure transparency.

These criteria promote fairness, transparency, and the maximization of token holders’ rewards.

Benefits to the IoTeX Ecosystem

IoTeX wanted to bring in a project to the ecosystem that was grounded in a great user experience. Ultimately, improving upon the current native staking experience and bringing it to another level with liquid staking. It needed to be something that not only was easy to use, but also highly secure, as at the end of the day IoTeX’s reputation is on the line when endorsing the Bedrock product. 

Fortunately, Bedrock filled all these project needs. Bedrock simplifies the staking process for IOTX by eliminating the complexities associated with Delegated Proof of Stake. With Bedrock, users can mint uniIOTX using their IOTX tokens, and the platform takes care of all technical aspects. The system optimizes returns by intelligently allocating specific amounts of IOTX to various validators, considering multiple staking periods and delegation strategies to ensure better profitability. uniIOTX also prioritizes security, maintaining the highest standards of trust through a thorough code audit. Additionally, the platform offers instant liquidity by providing users with uniIOTX immediately upon deposit, allowing for both instant liquidity on staked IOTX and ongoing staking rewards. This when coupled with the liquidity pool on leading DEX mimo allows a user to instantly revert back to IOTX without being locked in if they wish. 

Our Commitment to the Community

Following the beta launch, we received several inquiries on ioPay availability from the IoTeX community. To demonstrate our commitment to further optimize user experience and servitude to the community, we have now added support for ioPay, a Web3 wallet native to the IoTeX blockchain. We will continue to enhance our offerings through community insights to deliver a refined product during the official launch in early 2024.

The official launch will introduce additional features such as the ability to view transaction history and a notification system to remind our users when the unstaking period has ended. Additionally, we will allow users to initiate the unstaking period on their own, directly through the validator, thus bypassing our frontend. This will reduce oracle risk and increase transparency, though users may take the traditional route of initiating unstaking by simply clicking a few buttons on the Bedrock interface.

We hope that you are as excited as we are for the official launch of uniIOTX in the coming months. Thank you for your support on this journey, and we look forward to serving the IoTeX community in greater capacities in time to come.

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