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Ethereum L2

xDai and STAKE simply explained

How the xDai and STAKE tokens are used. xDai is an Ethereum based stablechain with fast and cheap transactions with a native stablecoin.

xDai coin


It is a stablecoin pegged with 1:1 ratio to Dai for stable transactions and low fees. It can back on-chain tokens (for use in Event Currencies like this one and Community Currencies).

STAKE token is used for


  • Validators running nodes
  • Delegators placing stake on those nodes.
  • Rewards to validators.

Additional sidechains can use STAKE to secure their chains, making this the first multi-chain enabled staking token.

What is xDai Chain


xDai is an Ethereum-based sidechain with a stablecoin native currency and beginner friendly tooling.

It uses two tokens

  • The native stablecoin xDAI
  • The staking token STAKE.

How xDAI STAKE works


The chain uses a version of delegated Proof of Stake (DPOS) consensus – called POSDAO. xDai is the native currency like ETH on Ethereum.

Transactions

  • Fast
  • Cheap
  • Paid with a single coin.

Bridge

The TokenBridge is used to move and convert assets between chains.

  • The bridge uses smart contracts on both chains to process transfers, and a group of validators confirm bridge transactions.
  • When a bridge transfer is initiated, the specified amount of Dai is locked in a smart contract on the Ethereum mainnet, and the same amount of xDai is minted on the stable chain and sent to the user’s wallet.
  • When xDai is transferred back, it is burned, and the corresponding amount of Dai is unlocked in the contract and released to the user’s wallet on the Ethereum mainnet.

The amount created can never exceed the amount of Dai locked in the bridge contract.

STAKE token issuance


Current supply: 8,545,470 STAKE

Docs


Docs

Paper

Competition


STAKE token price


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