BitStake Protocol Documentation

Overview

A Bitcoin-aligned DeFi primitive offering non-custodial STX staking with tiered rewards and on-chain governance, built on Stacks Layer 2. Combines yield generation with decentralized decision-making while maintaining Bitcoin-level security guarantees.

Key Components

1. Core Protocol Mechanics

• STX Staking Engine
• Tiered Reward Distribution (1-3)
• Time-Lock Multipliers (1x-1.5x)
• Governance Voting System
• Emergency Safeguards

2. Technical Architecture

Token System:

• ANALYTICS-TOKEN (Fungible Token, Decimals: 0)
• STX Pool Management

State Management:

Data Variables:
- contract-paused : Bool
- emergency-mode : Bool
- stx-pool : UInt
- base-reward-rate : UInt (500 = 5%)
- bonus-rate : UInt (100 = 1%)
- minimum-stake : UInt (1,000,000 uSTX)
- cooldown-period : UInt (1440 blocks)
- proposal-count : UInt

Data Maps:
- Proposals : Stores governance proposals
- UserPositions : Tracks user staking positions
- StakingPositions : Manages active stakes
- TierLevels : Configures reward tiers

Core Functions

Staking Operations

stake-stx
Executes STX deposit with optional time-lock
Params:

• amount (uSTX, min 1M)
• lock-period (0/4320/8640 blocks)

Mechanics:

1. STX transfer to contract
2. Tier calculation (1-3)
3. Reward multiplier application
4. Position update

initiate-unstake
Begins withdrawal process with cooldown
Params:

• amount (uSTX)

complete-unstake
Finalizes withdrawal after cooldown

Governance System

Proposal Lifecycle:

1. create-proposal

   • Requires 1M+ voting power
   • 100-2880 block voting period

2. vote-on-proposal

   • Weighted by voting power
   • Active proposals only

3. Execution

   • Automatic when thresholds met

Administrative Functions

• pause-contract (Owner-only)
• resume-contract (Owner-only)
• initialize-contract (One-time setup)

Reward Mechanics

Calculation Formula:

Rewards = (StakedAmount * BaseRate * Multiplier * BlocksStaked) / 14,400,000

Multipliers:

• Tier 1: 1x | Tier 2: 1.5x | Tier 3: 2x
• Lock Period: +25% (1M), +50% (2M)

Security Model

Protection Mechanisms:

• Cooldown withdrawals (1440 blocks)
• Circuit breaker pattern
• Tiered access control
• Input validation layers

Error Codes:

• 1000: Unauthorized access
• 1001: Invalid parameters
• 1002: Incorrect amounts
• 1003: Insufficient balance
• 1004: Cooldown active
• 1005: No stake found
• 1006: Below minimum
• 1007: Contract paused

Governance Parameters

Proposal Requirements:

• Minimum description: 10 chars
• Maximum description: 256 chars
• Voting period: 100-2880 blocks
• Minimum votes: 1M voting power

Development Guide

Requirements

• Clarinet 2.0+
• Stacks.js 6.x
• Testnet STX

Audit Considerations

1. Verify tier thresholds
2. Test reward calculations
3. Validate cooldown enforcement
4. Check governance thresholds
5. Verify emergency pause functionality