When a user stakes ETH (32 or a multiple thereof), it triggers the master smart contract, which generates an individual smart contract named StakeHolder smart contract for each user. This smart contract stores all user information, including the amount of ETH staked, accumulated rewards, and transaction records.
Flow of Funds (Staking)
The staked ETH is subsequently distributed among validators using DVT. Simultaneously, the master smart contract mints clETH, the liquid staking token, in an amount equivalent to the user's staked ETH.
Flow of Funds(Unstaking)
When a user wishes to unstake their ETH, the master contract burns the corresponding clETH tokens, facilitating the exchange with the staked ETH. Additionally, the validator unstakes the ETH, which then directly returns to the user through the StakeHolder smart contract.
Flow of Funds (Rewards)
Moreover, a user has the option to claim rewards equal to or less than the accumulated amount. They can achieve this by utilizing the 'claimReward' function. Upon claiming rewards, the master contract mints the corresponding amount of clETH, which the user receives.