Leverage Staking Hook Update (December 4)

• All smart contract work for the leverage staking hook is complete, tested, and deployed to mainnet.
• The feature is currently being tested in isolation on mainnet in a controlled environment to validate behavior and optimize performance.
• Although the hook is complete, it cannot be enabled until the full Solver V3 pipeline is shipped.
  • This includes quoting, execution, and caching.
• Once Solver V3 is fully live, we will begin enabling the hook features, starting with this leverage staking hook.
• In summary, the intent hooks infrastructure is complete, and the first hook (leverage staking) is deployed, pending activation once the solver rollout is finalized.

Leverage Staking Hook

The Leverage Staking Hook is the first custom intent hook built within the SODAX intent framework.

This hook enables automated leverage staking using a native asset — for example, SODA.

Here’s how it works:

1. The user supplies SODA (the native asset).
2. The hook automatically stakes that SODA to receive liquid staked SODA (xSODA).
3. The xSODA is then supplied to the money market as collateral.
4. The system borrows more SODA against that collateral.
5. The borrowed SODA is staked again, and the cycle repeats — compounding the user’s position.

Because both the collateral and borrowed asset are the same (SODA and xSODA), the price moves in sync, maintaining a stable ratio as one grows in value.

This is a common pattern across ecosystems known as leverage staking, where users amplify staking rewards through recursive borrowing and supplying loops.

When this hook is integrated, it will enable one-click leverage staking and one-click deleveraging for any asset supported by the SODAX Money Market — all executed through intents.

Just like other intent hooks, to the solver this process appears as a normal swap intent.

Under the hood, however, the hook executes multiple smart contract actions to complete the leverage or deleverage cycle automatically.