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How pCORE Works

1. Deposit Process​

  1. Deposit CORE: Users deposit CORE or WCORE tokens into the Corepilot protocol
  2. Automatic Distribution: The protocol distributes CORE to optimal validators
  3. Receive pCORE: Users receive pCORE tokens representing their deposit
  4. Earn Rewards: Rewards accrue to the protocol, increasing pCORE value

Example​

  • User has 150 WCORE
  • Current exchange rate is 1.5
  • Deposit 150 WCORE, user will receive 100 pCORE (150 / 1.5)

2. Exchange Rate Mechanism​

The pCORE to CORE exchange rate increases over time as staking rewards are earned:

Exchange Rate = (Total CORE Deposited + Accumulated Rewards) / Total pCORE Supply

Example​

  • Initial State: 1,000 CORE deposited → 1,000 pCORE minted → Exchange Rate = 1.00
  • After Rewards: 1,500 CORE (1,000 + 500 rewards) → 1,000 pCORE → Exchange Rate = 1.5
  • User Benefit: Each pCORE token is now worth 1.5 CORE

Value Appreciation Workflow​

3. Redeem Process​

Users can always redeem their pCORE tokens for CORE at the current exchange rate. Example: If the current exchange rate is 1.5, redeeming 100 pCORE will return 150 CORE. There are 2 redemption modes: normal redeem and instant redeem

3.1. Normal Redeem​

  • Request redeem: Submit a withdrawal request by burning pCORE tokens
  • Waiting Period: 24-hour delay before CORE tokens can be claimed
  • Claim Tokens: After waiting period, claim your CORE tokens at the locked exchange rate

Example​

  • User has 100 pCORE
  • Current exchange rate is 1.5 when request is made
  • Step 1: Request withdrawal → pCORE burned
  • Step 2: Wait 24 hours for processing
  • Step 3: Claim 150 CORE (100 × 1.5)

3.2. Instant Redeem (No unlock period)​

Instant redemption lets users withdraw CORE immediately to their wallet without any redemption period (with a 10% fee).

Example​

  • User has 100 pCORE
  • Current exchange rate is 1.5 when request is made
  • Total: 150 CORE (100 × 1.5), user will immediately receive 135 CORE (150 x 0.9)

4. Deposit/Redeem Restrictions & Dues Protection​

The Core staking contract enforces these rules:

  • When delegating CORE, the amount must be >= 1 CORE.
  • When undelegating CORE:
    • The amount must be >= 1 CORE, and
    • The remaining CORE left on a validator of this address must be >= 1 or = 0.

Since these restrictions also apply to pCORE, it must adhere to the same rules when executing all deposit, mint, redeem, withdraw operations.

5. Validator Selection & Optimization​

  • Performance Monitoring: Continuous tracking of validator performance metrics
  • APY Optimization: Automatic rebalancing to maximize returns
  • Risk Assessment: Evaluation of validator reliability and history

6. Reward Accumulation​

  • Real-time Accrual: Rewards are continuously added to the vault
  • No Manual Action: Users don't need to claim or restake rewards
  • Compound Growth: Rewards earn additional rewards over time