Divi Staking Vaults

Cold Staking and Real Mobile Staking is here.

Butcher and Banker Steak House in NYC (which has nothing to do with this article)

Staking vaults at a high level

The basic idea for a staking vault is that everyone with Divi funds should be able to participate in staking, even if they have a poor internet connection or perhaps, don’t have a computer. More importantly, you may have a computer that can stake, but do not want to leave it on all the time or want to use it for something else, while a friend of yourshappens to have a computer they can dedicate to staking. This entire article is focused on the bare bones command line interface (CLI) wallet. If you are using the mobile app or desktop GUI version, you have a treat in store for you and this article just lets you know whats going on in the background.

Alice and Bob want to work together to get them both staking.
  1. Alice needs to send an address of hers to Bob.
  2. Bob needs to fund a vault.
  3. Alice hosts Bob’s vault.

Hosting a vault

A vault manager can stake her own funds while hosting a vault for other people’s funds. In this case, perhaps Alice creates a new address:

Delegating funds to a vault

Bob is totally jazzed that Alice will help him out. So he does a getbalance command, and sees that he has 30,400 Divi available to him. He wants to keep a little around for fees and tips, but he wants to fund a vault with 30K Divi. So he unlocks his wallet and simply types:

Funding a new vault gives you a tx hash and “owner address : manager address” pair
Bob has 30,000 Divi vaulted with Alice and 3 Divi was spent setting that up.
Bob’s funds have been combined into his vault owner address
Alice needs to execute one single addvault command

Taking down vaults

What if Alice and Bob get in a fight because he never bought her the beer he promised? What if Bob wants to buy a car and needs his Divi? Both vault managers and vault funders need to be able to end the funder-vaulter relationship. This is very simple.

Bob dismantles the vault from his side

Bob can get his funds back by issuing the following command:

Alice dismantles the vault from her side

If Alice wants to stop staking for Bob because she didn’t get paid, she doesn’t like his cologne, or she just thinks Bob is a twerp now, she totally can. It’s her node, she can do what she wants, as she wants. She is under no obligation to warn, inform or ask Bob for permission to take down the vault she is staking for Bob.

In practice

Clearly, vaults accomplish some great features. With vaults you can have a friend with expertise stake funds for you without funds leaving your wallet. The scenario described above basically demonstrates this. Keep in mind, there are zero financial incentives to stake in a vault vs staking on your own live node. What can vaults be used for?

Cold Staking

Well, one great use case for Divi Staking vaults is cold staking. You, yourself, can set up the two wallets. Once you have the managing wallet running and staking the vaulted funds, you can completely dismantle the funding wallet. Seriously, grab the seed words and take down the funding wallet altogether. Funds will be staking.

With a Front End

The Divi Project is putting staking vaults into their world class, easy to use, crypto-made-easy mobile wallet (and their desktop wallet too). Because they will be encapsulating both payment and messaging inside the wallet platform, the vaulting system is very simple. They will set it up such that they are the vault manager and all you have to to is decide how much Divi you want to put in a vault and press a button. As a user, you wont have to do any of the steps described above.

Staking vaults are soon going to be even easier.

Limitations:

  • You can not create a combined utxo unless 6 confirms on the existing utxo’s have happened.
  • If there are multiple wallets, not currently possible to define which one gets defunded
  • There is no way for the fund owner to know if the vault manager is currently staking, or has removed the vault from their side.
  • Vault managers can not take a fee on chain. All payments, contracts and such are done off chain.
  • Stake rewards can not be rerouted anywhere but to the fund owners vault.

Kudos

I can’t leave off writing this article without mentioning the amazing folks at Divi. The Divi Project is honestly the only cryptocurrency organization and community utterly committed to making cryptocurrency easy for people.

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Robert Hirsch

Author, Maker, Father, Dreamer. Robert received his Ph.D. from RPI in Mechatronics. Since then, consumer devices, renewable energy, and now blockchain.