Compliant Staking Overview

Deposit. Mint. Earn. Repeat.

What is Compliant Staking?

Compliant Staking is a mechanism introduced by Singularity to increase total value locked (TVL) and enhance obfuscation within the platform. This process begins with users completing KYB/KYC procedures, after which they deposit and lock their assets into the Singularity contract and mint an equivalent amount of sgTokens on a 1:1 basis.

sgTokens are permissionless ERC20 tokens that can be traded freely on DEXs against their native assets. By locking native ERC20 assets in Singularity, holders of sgTokens will earn staking emissions as a reward for locking their assets and contributing to the obfuscation of the pool.

Although sgToken minting requires KYB/KYC compliance, anyone can purchase and hold sgTokens from the open market without such requirements. This approach maintains minimal market risk as sgTokens are always backed 1:1 by native counterparts locked in the smart contract, which can be publicly verified and monitored via blockchain explorers in real-time.

Head to the the Singularity protocol to get started. You should see the following image when you do.

UX and UI of this mechanism

Receive Reward Points: Holders of sgTokens will receive reward points for contributing to protocol's TVL and increased obfuscation of users' on-chain actions that occur within Singularity.

Redeem underlying assets: To redeem the underlying asset, burn sgToken(s) and withdrawal the underlying asset from Singularity. Withdrawals can only be made to a KYC/KYB'd wallet.

Using sgTokens:

Trading and Liquidity Provision

sgTokens can be traded freely on permissionless decentralized exchanges (DEXs) like Uniswap. Users can also provide liquidity by participating in sgToken asset pools (e.g., sgETH) to earn trading fees.

Available DEX pools: [TBA] Collateralization and Borrowing

In addition to trading, users can use sgTokens as collateral in money markets through our partners to borrow against, enhancing their financial flexibility.

Supported Assets

Singularity supports any erc20 tokens including various restaking tokens. Initially, we are deployed on Ethereum and Arbitrum and support ETH, stETH, rETH, USDC, and USDT.