Staked scAssets & yield distribution

The yield distribution for staked scAssets will be implemented through two methods:

  1. A weekly Merkle tree claim system

  2. An ERC4626 wrapper (wstkscUSD / wstkscETH)

The Merkle tree claim process allows for efficient and gas-optimized distribution of yields on a weekly basis. Users can claim their rewards by providing proof of their eligibility, which is verified against the Merkle root stored on-chain. This method ensures a fair and transparent distribution of yields while minimizing gas costs for both the protocol and users.

For those seeking a more streamlined experience, the ERC4626 wrapper tokens (wstkscUSD and wstkscETH) will automatically compound yields. These wrapper tokens represent a user's stake in the underlying scAssets, including accrued yields, making them ideal for users who prefer a "set-and-forget" approach to earning yields on their staked assets.

This dual approach to yield distribution offers flexibility and efficiency, catering to different user preferences within the ecosystem.

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