Segregation Of Funds

Describes how Dexponent maintains Segregation of Funds

1. Stake:

   1. Since 1 user wallet address means 1 ISC, the ETH deposited from the user wallet for staking is deposited to the respective ISC.

   2. No other wallet can access this smart contract unless the one used to create it.

2. Liquid Token flow :

   1. Once the deposit of ETH on the ISC is confirmed - the Dexponent LST clETH is freshly minted and transferred to the user's wallet. This is not taken from any pool of clETH maintained.

3. Rewards:

   1. The withdrawal address defined while generating the deposit keys is the ISC address. At any given point - the rewards from consensus and execution layers are accumulated here.

   2. If a rewards withdrawal is requested - the equivalent amount of the funds are taken from this smart contract to mint the equivalent amount of clETH to be transferred to the user's wallet.

4. Unstake:

   1. The liquid token on the user's wallet is immediately sent to ISC, where it is burnt after the user claims the ETH from ISC.

   2. Since the ISC address is the withdrawal address, ETH is sent to the same ISC address after exiting the validator.

   3. Once the user claims the unstaked ETH, the ETH is directly transferred to the user's wallet from ISC.