Create RFP-007 for Private Liquid Staking Derivatives

RFPs/rfpṜFP-007-Private-liquid-staking-derivatives.md

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+---
+id: RFP-007
+title: Private Liquid Staking Derivatives (LSDs)
+tier: L
+funding: $XXXXX
+status: open
+category: Applications & Integrations
+---
+
+
+# RFP-007 — Private Liquid Staking Derivatives (LSDs)
+
+## 🧭 Overview
+
+Build a liquid staking protocol for the Logos network that allows users to
+stake the native token to secure the network while receiving a liquid,
+shielded derivative token that can be used freely across the private DeFi
+ecosystem. The entire flow — staking, receiving the liquid token, and using
+it — must remain within the shielded environment.
+
+Liquid staking is the network aligner: it solves the tension between
+securing the chain (which requires locking capital) and maintaining
+liquidity (which requires freely available capital). Without liquid staking,
+users must choose between earning staking yield and participating in DeFi,
+fragmenting the ecosystem's capital efficiency.
+
+The ideal team has experience in PoS staking infrastructure, liquid staking
+protocol design, and privacy-preserving token issuance.
+
+## 🔥 Why This Matters
+
+Liquid staking has proven to be one of the most demanded primitives on PoS
+chains. Marinade Finance became Solana's largest protocol with over $1.8B
+in TVL, demonstrating immense user demand to earn staking yield without
+sacrificing liquidity. On Ethereum, liquid staking (Lido, Rocket Pool)
+represents the single largest DeFi category by TVL.
+
+For a privacy L1, liquid staking carries additional privacy implications.
+On transparent chains, staking is inherently public — the staker's address,
+amount staked, and chosen validator are all visible. This creates a direct
+link between a user's staking activity (often tied to KYC'd validators)
+and their broader financial activity. A private liquid staking protocol
+on Logos must sever this link: the act of staking, the receipt of the
+liquid derivative token, and the subsequent use of that token in DeFi must
+all be shielded, ensuring that validator-level information cannot be used
+to de-anonymize users.
+
+## ✅ Scope of Work
+
+### Hard Requirements
+
+#### Functionality
+1. Users can stake the native Logos token through the protocol and
+   receive a shielded liquid staking derivative (e.g., sLOGOS) in
+   return.
+2. The staking delegation to validators must not reveal which end-user
+   initiated the stake — the protocol acts as an intermediary pool.
+3. Staking rewards must accrue to the liquid derivative token
+   (rebasing or exchange-rate model) without revealing individual
+   staker rewards.
+4. Users can unstake by returning the derivative token, subject to
+   the network's unbonding period, with the redemption happening
+   privately.
+5. The liquid derivative token must be a standard shielded token
+   compatible with other Logos DeFi protocols (DEX, lending, etc.).
+
+#### Security
+1. Implement validator set diversification to avoid concentration
+   risk — the protocol should distribute stake across multiple
+   validators.
+2. Include slashing protection mechanisms — if a validator is slashed,
+   the loss is socialized across the pool rather than hitting
+   individual stakers.
+3. Include an emergency pause mechanism for staking and unstaking
+   operations.
+
+#### Usability
+1. Provide a minimal front-end UI for staking, unstaking, and
+   viewing aggregate protocol statistics.
+2. Display aggregate staking metrics (total staked, current APY,
+   validator distribution) without revealing individual positions.
+
+### Soft Requirements
+
+1. Governance mechanism for validator set curation and protocol
+   parameter adjustments.
+2. Integration with the Logos DEX (RFP-004) for liquid derivative
+   token trading.
+3. Integration with the lending protocol (RFP-006) to use the
+   liquid derivative as collateral.
+4. Support for instant unstaking via a liquidity buffer pool.
+5. Exploration of MEV-sharing mechanisms where staking rewards include
+   a portion of MEV revenue.
+
+## 👤 Recommended Team Profile
+
+Team experienced with:
+
+- PoS staking infrastructure and validator operations
+- Liquid staking protocol design (Lido, Marinade, or similar)
+- Zero-knowledge proof systems
+- DeFi smart contract development and security
+- Token economic modeling
+- Front-end development for DeFi applications
+
+## ⏱ Timeline Expectations
+
+Estimated duration: **12–18 weeks**
+
+
+## 🌍 Open Source Requirement
+
+All code must be released under the **MIT+Apache2.0 dual License**.
+
+
+## Resources
+
+- [Logos Documentation](https://github.com/logos-co/logos-docs)
+- [Logos Blockchain Node Quickstart](https://github.com/logos-co/logos-docs/blob/main/docs/blockchain/quickstart-guide-for-the-logos-blockchain-node.md)
+- TODO: LEE official doc
+- TODO: Logos staking and consensus specification
+- TODO: Shielded asset specification
+
+
+## ✏️ How to Apply
+
+👉 Submit a proposal using the Issue form:
+
+**[Submit Proposal](https://github.com/logos-co/rfp/issues/new?template=proposal.yml)**
+
+We typically respond within **14 days**. For clarification questions,
+please use **Discussions**.