[Epic]: staking/LSM

[tac0turtle]

Summary

In 2022 development of a liquid staking module was started and completed. There was the idea of moving this work into the sdk but it has not landed in the sdk for a few reasons. Currently the hub and a few other chains are talking about the design and possible changes.

After speaking with zaki there are changes within the new module that make sense to add to the current staking module. These changes would allow for current staking and LSM to coexist in one staking module. Secondly, there were changes to the distribution modules that could be done outside of distribution with a few minor changes to distribution.

Work Breakdown

• Evaluate staking changes in the liquid staking module
  • https://github.com/iqlusioninc/liquidity-staking-module
    • Adopt Validator Bonding
    • Explicit unbonding message
    • Global max of derivatives created
    • etc..
• Evaluate distribution module and figure out what can be its own module and what changes need to live within distribution.
  • The main change that needs to live outside is the minting of nft shares of the staking

[zmanian]

One thing we learned is that Cosmwasm liquid staking contracts are not module accounts. I think there is some research going on by the Stride team about the possibility of optionally tracking Cosmwasm liquid staking but I'm still unclear how to integrate this into the SDK

[tac0turtle]

cosmwasm has their own account abstraction from my knowledge. This may be more in tune with account v2 then the current design

[tac0turtle]

closing this for now, we will work on rewriting staking in the near future