Introduction
The WalletConnect Network is the onchain UX ecosystem that makes web3 work by facilitating users’ use of any wallet across any app and platform. As a chain-agnostic infrastructure, it operates across ecosystems from EVM and its L2s, to Solana, Cosmos, Polkadot, Bitcoin and more. The Network has played a crucial role in installing many of web3’s UX standards, fostering today’s composable and interoperable web3 ecosystem.
WCT Staking
The WalletConnect Network’s services are more akin to classic web2 offchain infrastructure rather than blockchain. The core technology for the WalletConnect Network is a permissionless rendezvous-hashing based database. Key components include:
- Service Nodes: These are database nodes that form the backbone of the network’s storage layer. They operate on a consistent-hashing based distributed database.
- Gateway Nodes: These nodes are responsible for facilitating encrypted communications and data routing between wallets and applications.
- Relay Service: This service, used to connect users’ wallets to dapps, is by design end-to-end encrypted. The Relay has no insight into users’ addresses, transaction hashes, KYC information, or any other information passed between the dapp and wallet.
- End-to-End Encryption: All messages transmitted through the network are encrypted, ensuring that only the intended recipient can access the information.
The Network is designed to operate in a fully permissionless manner, enabling any participant to run a Service Node or Gateway. It is expected that the Network will transition to a permissionless model following community consultation and technical validation.
Service Node Operators play a vital role in the WalletConnect ecosystem. Their responsibilities extend beyond mere node management to include proactive maintenance of high uptime and consistent performance optimization. The barrier to entry - staking WCT tokens - serves a dual purpose: it demonstrates the operator’s commitment and aligns their interests with the network’s success.
The reward structure for operators is carefully designed to promote both long-term commitment and high-quality service. Staking rewards incentivize sustained participation, while performance-based incentives, calculated using key metrics like uptime and latency, encourage continuous improvement and innovation in node operation.
LSaaS and rWCT: Accelerating WalletConnect Staking
StaFi’s development efforts in the LST domain are focused on two key areas:
- LSaaS Integration with WalletConnect LSD Stack: WalletConnect LST developers can quickly deploy a WalletConnect LST with minimal development and configuration, leveraging StaFi’s robust LSaaS framework.
- rWCT: Users can deposit WCT tokens on the StaFi Protocol without any limitations based on their capacity. The deposited WCT is then staked by StaFi’s staking contract, which autonomously selects the optimal sequencers to generate and maximize staking yields. Users who deposit WCT on StaFi will receive an equivalent amount of rWCT (rToken StaFi equivalent) to the value they staked. rWCT is an ERC20 and rebaseable token, allowing users to freely trade rWCT or provide liquidity (LP) to earn additional yield. This additional yield can be staked alongside reputable DEX partners on the OP ecosystem.
Why Choose WalletConnect
With the launch of WCT, WalletConnect is making strides toward decentralization in on-chain UX. Integrating LSaaS with the WalletConnect network can further this effort, enhancing the user experience while amplifying StaFi’s and LSaaS’s visibility and influence in the blockchain ecosystem.