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docs(system-overview.md): add system overview docs
This commit introduces the first documentation which provides an overview of the staking system and how accounts will interact with it. Closes #30
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# System Overview | ||
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This document provides an overview of the system architecture and design of the staking system. We'll learn about the | ||
system components, their interactions, and the data flow between them. | ||
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## Components | ||
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![System Overview](assets/overview.png) | ||
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1. **Account**: EOAs and smart accounts that participate in the staking system. | ||
2. **Stake vault**: A smart contract that maintains the account's stake. Accounts interface with the staking system | ||
through their stake vaults. | ||
3. **Stake manager proxy**: A smart contract proxy that delegates to the logic/implementation contract of the staking | ||
system. It maintains its own onchain storage. Stake vaults interact with the staking system through the proxy. | ||
4. **Stake manager implementation**: A smart contract in which the logic of the staking system resides. The stake | ||
manager proxy uses this contract to execute the staking system's logic. This contract is ugpradeable. | ||
5. **XP balance providers**: Systems that provide XP token balances to the XP token contract. The staking system is one | ||
such XP balance provider. | ||
6. **XP token**: An ERC20 token contract that issues XP tokens to accounts based on their stake. In addition to its own | ||
balance accounting, it relies on XP balance providers to aggregate total balances of individual accounts. XP tokens | ||
are not transferable. | ||
7. **XP NFT**: An ERC721 token contract that maintains non-transferable NFTs of accounts that participate in the XP | ||
program, either via the staking system or other activities. The XP NFTs rely on the XP token contract to render an | ||
accounts XP balance. | ||
8. **Accounts, DApps, Wallets**: External entities that consume the XP tokens and NFTs. | ||
9. **DAO/Admin**: Entity that controls the contract and sets XP rewards in the system which will be distributed | ||
according to every participant's stake. | ||
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## How the system works | ||
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- Accounts (EOAs or smart accounts) create one or multiple stake vaults to stake their SNT and participate in the XP | ||
Programme. In most cases, accounts will have only one stake vault, but nothing prevents them from creating more vaults | ||
with different configurations. | ||
- The stake vaults interact with the stake manager through the proxy by forwarding calls to the implementation contract. | ||
When an account stakes funds, their funds are moved into the stake vault and they will stay there until the account | ||
decides to unstake them. | ||
- While the account is staking, it will accrue experience points (XP) based on the amount of SNT staked and the duration | ||
of the stake. The longer accounts stake, the more XP they will earn. | ||
- By locking up their stake, accounts receive multiplier points that increase their initial XP earnings upon staking. | ||
- At any point in time, accounts can view their XP token balance in their wallets and how it updates in realtime. | ||
- In addition, every account receives an NFT that represents their participation in the XP Programme. It will evolve as | ||
the account gains XP. | ||
- Eventually, an account will either reach the maximum amount of XP they can accrue based on their stake amount, at | ||
which point they will no longer earn XP, or they will decide to unstake their funds, at which point they will not only | ||
stop earning XP, but even lose the XP they've received through staking. | ||
- The XP in the account's wallet can be used to access exclusive features or services within the Status app or other | ||
DApps that support the XP token, like voting in governance proposals or participating in exclusive events. |