Compliant Staking
Deposit. Mint. Earn. Repeat.
Compliant Staking
Compliant Staking is a mechanism introduced by Singularity to:
Increase Total Value Locked (TVL)
Enhance obfuscation and privacy within the platform
How It Works
KYC/KYB Compliance
Users first complete KYC or KYB procedures.
Deposit and Lock Assets
Users deposit their native ERC20 assets into the Singularity smart contract.
They then mint an equivalent amount of sgTokens on a 1:1 basis.
sgTokens
Permissionless ERC20 tokens that can be freely traded on DEXs against the native assets.
Holders of sgTokens earn staking emissions as a reward for:
Locking their assets
Contributing to the obfuscation of the pool
Market Accessibility
Anyone can purchase or hold sgTokens from the open market without completing KYC/KYB.
Key Features
1. Receive Reward Points
Holders of sgTokens earn reward points for:
Contributing to the protocol’s Total Value Locked (TVL)
Increasing obfuscation of on-chain actions within Singularity
2. Redeem Underlying Assets
To redeem the original asset:
Burn sgToken(s)
Withdraw the corresponding native asset from Singularity
Important: Withdrawals can only be made to a wallet that has completed KYC/KYB.
Head to the the Singularity protocol to get started.
You should see the following image when you do.
sgTokens are permissionless ERC20 tokens minted 1:1 against native assets locked in Singularity. They provide users with multiple ways to interact with the protocol while maintaining privacy and compliance.
Key Benefits
1:1 Backing & Minimal Market Risk
Each sgToken is backed 1:1 by native assets locked in the smart contract.
This backing can be publicly verified on-chain via blockchain explorers.
Privacy & Compliance
Users can lock assets and participate in staking emissions while maintaining compliant onboarding.
Enhances privacy/obfuscation within the pool.
Liquidity Flexibility
sgTokens are freely tradeable, allowing users to access capital while native assets remain locked.
Using sgTokens
a. Trading & Liquidity Provision
sgTokens can be traded freely on permissionless decentralized exchanges (DEXs) such as Uniswap.
Users can also provide liquidity in sgToken asset pools (e.g., sgETH) to earn trading fees.
b. Collateralization & Borrowing
sgTokens can be used as collateral in money markets through Singularity partners.
This allows users to borrow against sgTokens, enhancing financial flexibility.
Supported Assets
Singularity supports any ERC20 token, including various restaking tokens.
Initial deployment is on Ethereum and Arbitrum, supporting:
ETH
stETH
rETH
USDC
USDT
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