Wormhole

In this lesson, we’ll explore the core functionality and design of the CrossChainStaking smart contract, which manages both staking and borrowing within our cross-chain DeFi system.

1. What is CrossChainStaking?

CrossChainStaking is a simple staking and lending smart contract. It allows users to deposit one token as collateral (stake) and borrow another token in return.

📌 Basic flow:

1.The user stakes a supported token (e.g., Wrapped SOL).

2.The contract mints LoanTokens based on a predefined ratio.

3.The user can later repay the LoanTokens to unlock and withdraw their staked assets.

💡 Think of it like a crypto mortgage—you “lock” your assets (e.g., Wrapped SOL) and receive LoanTokens as a loan.

📌 2. Key Features

The CrossChainStaking contract offers two primary functions:

✅ stake() – Stake assets and receive LoanTokens

✅ unstake() – Repay LoanTokens and unlock staked assets

📌 Example:

●Alice stakes 10 SOL

●At a fixed ratio of 1 SOL = 10 LoanTokens, she receives 100 LoanTokens

●Later, when Alice repays 100 LoanTokens, her 10 SOL is returned to her

Note: This is a simplified example for learning purposes. A real-world implementation would involve price oracles and more accurate risk controls.

📌 3. Contract Structure Overview

💡 Users must repay their LoanTokens to unlock and retrieve their original staked collateral.

📌 4. Core Logic

stake() – Stake and Mint LoanTokens

●Users call stake(amount) to deposit tokens

●The contract calculates how many LoanTokens to mint using loanRatio

●LoanTokens are minted and issued to the user as a representation of the loan

unstake() – Repay LoanTokens and Withdraw Collateral

●Users call unstake(amount) to repay LoanTokens

●The contract verifies the repayment and burns the tokens

●Once verified, the user’s original collateral is released

Example