Hey pham!
Here is the Q&A list for the whole upgrade of the StakePool V2. I divided it into several sections for sorting out, and welcome to actively add questions in the comments.
1.About the upgrade
1.1 When will the upgrade start?
The upgrade will start from 15th Dec. Details
1.2 How will I be affected?
The detail imformation of the upgrade can be found here.
If you are a pool owner, check here:
If you are a delegator, check here:
1.3 What to expect during the upgrade?
The content of this upgrade will be very extensive, involving the reconstruction and upgrade of the two major modules of Computing and Delegation. Therefore, there will be many changes and adjustments in the data format and data content.
For Phala, the complexity of this upgrade is equivalent to Ethereum 2.0 upgrade for Ethereum.
Therefore, to avoid damage to the network due to too large of upgrade data, when we do data migration on the chain, we will split the upgraded content into multiple parts and upgrade them in different blocks. And during the entire upgrade process, some functions on the network will be stopped to ensure that the data remains unchanged.
This is unprecedented in this Polkadot ecosystem.
2.About StakePool
2.1 How will StakePool owners be affected in StakePool V2?
First of all, when the StakePool owner claims rewards, he needs to perform an extra step of unwrapping W-PHA to exchange the rewards for PHA. (Phala App 2.0 will automatically help the StakePool owner unwrap)
Secondly, the Delegator rewards in the StakePool will be reinvested into the StakePool. Either add new workers or be withdrawn. This is the choice that StakePool owners will face in the future.
Finally, the Vault function has been added. When there is a lack of delegation, go to the Vault owner and ask for delegation.
2.2 If a StakePool sets an upper limit, what will happen to this automatic reinvestment?
After the delegation reaches the cap, the StakePool cannot be delegated manually again, which will not affect the reinvestment of rewards. Rewards will still be automatically invested in the pool
Therefore, the premise of automatically compounding logic is that the vault in the middle can take on the function of operation and maintenance, help the delegator to give more tokens to StakePools which are capable of adding workers. Otherwise, when delegating in the StakePool without adding workers, there is no compound interest, only APR is falling.
2.3 Can Delegation NFT only be used in its entirety?
No, the Delegation NFT can be split.
When you delegated and want to withdraw part of it, it will divide your Delegation NFT and lock it in the withdrawal queue to wait for payment.
The same is if you wish to sell some of it. Split a part, list it in Phala World NFT market and then customize the price to sell it.
(The market has not yet been developed)
2.4 How will the withdrawal logic of the StakePool be affected?
First, the reinvestment generated by the reward will not automatically redeem the existing withdrawal queue, and the user needs to operate the reclaim to activate the reward to redeem the withdrawal queue. But in the StakePool v2, the new delegate and withdraw operations in the StakePool will also activate rewards redemption to the withdraw queue.
Secondly, the delegation already in the withdrawal queue will grow with the compound interest because of the compound interest mechanism. Therefore, the delegation required by the withdrawal queue will increase slightly.
Apart from this, there is no other change in the withdrawal logic. The logic above is also suitable for Vault.
3.About Vault
3.1 Doesn’t Vault have a set cap like StakePool?
The Vault has no cap. Because the more delegations in the Vault, the Vault is better. This is the original intention of the design.
It doesn’t matter whether the delegations in the Vault are all delegated to StakePools or not, because the APY will fall if there is too much free delegation in the Vault. Then there must be someone who takes it.
3.2 Why can the commission of Vault be modified?
Vault is similar to a fund, and the management fee of the fund is generally fixed.
But the problem now is that there is no market price benchmark for Vault’s commission. Once it cannot be modified from the beginning, it is difficult for all Vault Owners to find a better standard to set the commission when they created Vault. It may cause the Vault owner to choose to re-establish the Vault after a period of operation to adjust the commission.
This will cause a lot of confusion. Therefore, Vault’s commission can be modified, but the market will prove through behavior that a more stable Vault will be more popular.
3.3 What should I do if the Vault owner maliciously adjusts the Commission?
You need to apply for withdrawal at once, and remember this Vault and the owner of this Vault, and never delegate to him.
But you have to bear the losses caused by the withdrawal process. The maximum loss will be 21 days.
As for how to choose Vault, we recommend you choose a Vault with a large TVL and reduce the APY requirements a little. The larger the TVL, the better the historical performance, of Vault and the higher the cost of doing evil. Compared with the one-time evil proceeds, the operating income of this type of Vault will be higher, and they have no evil motive.
4.About W-PHA
4.1 How does W-PHA keep safe? Is it possible to be over-minted?
No, it is locked in the contract one-to-one with PHA, and the contract is responsible for minting the W-PHA.
5.About Phala App 2.0
5.1 Is there a reason why it is wrapped instead of going directly to the wallet when withdrawing?
Because we added a Wrapped PHA logic to make the Delegation NFT transferrable and can be used to vote for governance.
Actually we help you exchange PHA to W-PHA when delegate.
But during the process of withdraw, not every delegation can be withdraw at one transaction because of the amount free delegation. so that we could not help exchange back to PHA in one transaction. That’s why we need user to unwrap by themselves.