Magma contract

• Reward‑bearing LST (non‑rebasing): gMON represents a claim on underlying staked MON. Instead of token balances increasing, the exchange rate appreciates as rewards accrue. This design is generally more DeFi‑compatible and can be more tax‑efficient than rebasing models.

• Two vaults under the hood:

  • CoreVault: pooled validator delegation and automated balancing.

  • gVault: opt‑in per‑validator delegation.

• Standard compatibility:

  • ERC‑4626 on deposits: synchronous, immediate minting of gMON.

  • ERC‑7540 on redemptions: asynchronous, two‑step requests and claims.

Deposits (synchronous, ERC‑4626)

• Deposit flow is synchronous: users deposit and receive gMON immediately based on the current exchange rate.

• Supported assets:

  • MON (native).

  • WMON (ERC‑20).

• Routing options:

  • Deposit into the pooled CoreVault (balanced across the active validator set).

  • Deposit into gVault to target a specific validator and receive per‑validator shares.

• gMON is minted on deposit; the system then delegates to validators according to vault policies.

Redemptions (asynchronous, ERC‑7540)

• Redemptions follow a two‑step process aligned with Monad’s staking design:

1) Submit a redemption request (shares are burned; vaults begin undelegation). 2) After WITHDRAWAL_DELAY epochs have passed, withdraw the undelegated stake.

• This aligns with Monad’s undelegation and withdrawal workflow, which requires an epoch‑based delay. See Monad staking docs for background on delegation, undelegation, and withdrawals: Monad Staking.

• Magma is ERC‑7540‑compatible on the redemption side, enabling standardized async flows.

Fees and protocol parameters

• rewardsFee (bps): Applied on staking rewards before re‑staking or distribution.

• withdrawalFee (bps): Applied when completing a withdrawal to the user.

• redeemDelay (seconds): Minimum wait between request and redemption, aligned with Monad withdrawal delay.

• mevRewardsInjector: Authorized address that can inject accrued MEV rewards directly into the system for compounding.

Compatibility and integrations

• Deposits: ERC‑4626 semantics for mint/deposit flows.

• Redemptions: ERC‑7540 semantics for request/claim flows.

• Built around Monad’s staking precompile and lifecycle; see Monad Staking.