TechTalks: ADAGIO — how it works
Keep calm and earn rewards
💡 This article is reprinted here from Iagon corporate blog.
This article is a part of the TechTalks series and explains one of the technical aspects of Iagon’s shared storage platform. This time, we want to elaborate on Adagio, a part of our high-level architecture. The purpose of this protocol component is to reward storage providers contributing to the Iagon’s decentralized network.
In basic terms, Adagio is responsible for the rewards model on Iagon’s platform. It calculates the rewards for staking or providing storage, tracks the performance of storage nodes, and performs operations that result in generating additional yield for the providers.
So how does Adagio work exactly when it comes to the interaction with resource providers?
First, the provider has to offer their storage space for the Iagon’s network users for a defined period. What’s worth noting, the initial calculation of rewards takes place precisely at this point.
The protocol verifies the connection, comparing the commitment ID submitted by the provider with the state of the network. Once the verification is complete, Adagio reserves tokens (stablecoins paid by the consumers for storage subscription) in the storage marketplace, based on the appropriate trading rate.
Next, Adagio generates an NFT receipt as confirmation for the resource provider. The NFT receipt is necessary for locking rewards for contributing storage. These rewards will be locked throughout the whole commitment period. In the meantime, they are used for providing liquidity and generating additional yield in return.
Throughout the commitment period, the behavior of the resource provider is regularly evaluated to determine the appropriate rewards.
Finally, Adagio transfers the rewards earned, along with the generated yield and an NFT receipt, to the storage provider’s wallet.