Staking
Staking in Taurox refers to depositing crypto assets into the trading pool to earn a share of the returns generated by active trading agents. Stakers provide the capital that agents trade. In return, stakers receive a proportional share of net trading profits.
Supported Assets
The trading pool accepts deposits in the following assets at launch:
USDT
Stablecoin
USDC
Stablecoin
DAI
Stablecoin
BTC
Major
ETH
Major
SOL
Major
LINK
Utility
UNI
Utility
AAVE
Utility
Additional assets may be added through DAO governance proposals. Deposited assets remain in their original form and are not converted upon deposit.
Depositing Assets
Users deposit supported assets from the Taurox Wallet into the trading pool. To stake, a user must hold TAUX. The maximum amount a user can deposit is proportional to their share of the total TAUX supply. A holder of 1% of all TAUX can stake up to 1% of the pool's total capacity. There is no minimum deposit requirement enforced by the protocol, though very small deposits may be impractical relative to network transaction fees.
Upon deposit, the protocol mints txTokens at the current exchange rate. txTokens represent the staker's share of the pool, including any future returns. The exchange rate between txTokens and underlying assets increases over time as agents generate profits.
Earning Returns
Stakers earn returns passively. There is no action required after depositing: no strategy selection, no agent management, no rebalancing. The protocol handles capital allocation, risk controls, and profit distribution automatically.
Returns are not fixed. They reflect the aggregate performance of all active trading agents, net of performance fees. In periods of strong agent performance, returns increase. In periods of weak performance or market drawdowns, returns may decrease or turn negative.
The staker's share of returns is proportional to their contribution to the pool. A staker who contributes 1% of the pool's total capital earns 1% of the pool's net distributable returns.
txToken Value Accrual
Rather than distributing profits directly to stakers as separate payments, the protocol increases the redemption value of each txToken. This means that returns compound automatically without requiring stakers to claim or reinvest.
When a staker deposits 1 ETH and receives 1,000 txTokens, those tokens may later be redeemable for 1.05 ETH if the pool has generated a 5% return. The number of txTokens held does not change, but their underlying value increases.
txTokens are standard ERC-20 tokens. They can be transferred between wallets and are compatible with other DeFi protocols, though their primary function is to represent pool participation within the Taurox ecosystem.
Unused Allocation Rights
Not all TAUX holders use their allocation rights at all times. Some hold TAUX for governance, speculation, or future use. When this happens, a portion of the pool's capacity sits idle.
The protocol does not leave this capacity unused. Unexercised allocation rights are made available to other participants through a structured bidding process.
How it works. When the pool has unused capacity (for example, the pool is 90% full because some TAUX holders have not staked), the protocol opens a 60-minute bidding window. The available capacity is distributed proportionally among bidders based on their TAUX holdings. If two bidders participate, one holding 9,000,000 TAUX and the other holding 1,000,000 TAUX, the first receives 90% of the available capacity and the second receives 10%.
What happens when the original holder returns. The rights always belong to the TAUX holder. If a holder who was not using their allocation decides to stake, the protocol returns the corresponding capital plus any accrued profit or loss to the temporary user. The original holder then deposits their own capital into the reclaimed capacity. This process is handled by the smart contract automatically.
The key principle. TAUX holders never lose their rights. They can exercise them at any time. The bidding mechanism simply ensures that idle capacity generates returns for the pool rather than sitting empty. Temporary users accept the risk that their position may be returned at any time when the rightful holder claims their allocation.
Risk Considerations
Staking exposes capital to the collective trading performance of all active agents. While diversification across many agents and strategies reduces the impact of any single agent's losses, negative returns are possible. The protocol enforces risk controls at both the agent and pool level, but does not guarantee principal or returns.
Stakers should consider their risk tolerance before committing capital. Withdrawals are processed within 48 hours under standard terms or per the staker's agreed staking terms, subject to available liquidity in the reserve buffer.
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