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maurolacy committed Jul 10, 2023
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10 changes: 5 additions & 5 deletions docs/consumer/Consumer.md
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# Consumer

The consumer side of the system receives "virtual tokens" from
The Consumer side of the system receives "virtual tokens" from
some trusted providers and uses those to update the local staking weights.
It then provides rewards to those providers in exchange for
the security promise it receives.

This is the other half of [the provider flow](../provider/Provider.md).
This is the other half of the [Provider](../provider/Provider.md) flow.

```mermaid
flowchart LR
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and the [External Staking](../provider/ExternalStaking.md) contract on the Provider.
The External Staking contract must be already instantiated with the proper IBC channel information (i.e. proper connection id
and port id information in the `AuthorizedEndpoint` struct, set as part of their `InstantiateMsg`).
See the [Provider](../provider/Provider.md) Setup for more information.
See the [Provider Setup](../provider/Provider.md#setup) for more information.

Also, see [IBC Deployment](../ibc/ControlChannel.md#deployment) for more information on how the IBC connection is established.

## Converting Foreign Stake

Not all providers are treated equally. (And this is a good thing)
Not all providers are treated equally (and this is a good thing).

Each Converter accepts messages from exactly one provider and is
the point where we establish trust. The Converter is responsible for
converting the staking messages into local units. It does two transformations.
This first is convert the token based on a price oracle. The second step is to apply a discount,
which captures both the volatility of the remote asset, as well as
which captures both the volatility of the remote asset, and
a general preference for local/native staking.

This is described more in depth under [Converter](./Converter.md#staking-flow).
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2 changes: 1 addition & 1 deletion docs/consumer/Converter.md
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The Stake Converter is on the consumer side and is connected to an External Staker on the Provider side.
This handles the normalization of the external tokens and _converts_ them into "Virtual Stake".
There is a 1:1 connection between a Converter and a [Virtual Staking Contract](./VirtualStaking.md)
There is a 1:1 connection between a Converter and a [Virtual Staking](./VirtualStaking.md) contract
which handles the actual issuance.

The converter is connected to the Provider chain via IBC and handles the various packets coming from it.
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