Crowdstaking

Turning shared funds into shared futures.

Crowdstaking transforms any pool of money into an interest-generating engine to fund your group's shared goals. Your deposited funds remain safely staked and fully withdrawable — only the interest gets allocated.

  • Open source protocol

  • Fully customizable

  • Decentralized governance

Under the Hood

The Crowdstaking application is a smart contract system on Gnosis Chain that accepts users' xDAI and converts it into sDAI (yield-bearing stablecoins). In exchange, stakers receive project-specific tokens minted at a 1:1 ratio with their collateralized xDAI. All interest earned on the sDAI funds their shared goal.

How the mechanism works

Your savings do the work while staying yours. Here's how a slice of yield — and only the yield — turns into funding for your community.

WXDAI → CSTAKE

Your deposit

minted 1:1

The vault

Yield slice
Your principalstays whole · withdrawable 1:1
Over-collateralized loans · sDAI

the slice

Voted recipients

Your cause

funded each cycle

Your principal loops back to you — burn CSTAKE for WXDAI 1:1, anytime.

You deposit — and stay in control

Your principal: 100% yours

Add WXDAI to the shared pool and instantly receive CSTAKE, 1:1. That token is your receipt: your principal never leaves your control, and you can withdraw it in full at any time.

Fundraising for free: from shared funds to shared futures

  1. 1

    Community pools assets

    Members deposit funds to the shared community pool in your own branded interface.

    Community pool
    Members → community pool
  2. 2

    Automated interest generation

    Funds are automatically generating yield through overcollateralized loans.

    Principal
    + yield Over-collateralized
    Only the yield grows — principal stays whole
  3. 3

    Community decides on funding

    Interest is allocated to your community's shared goal.

    Allocate the yield
    Recipient A
    Recipient B
    Recipient C
    Weighted votes split the yield
  4. 4

    Projects get funded

    Projects receive funding while members retain their original principal amount.

    Yield
    Yield → recipients · principal returns 1:1
Over-collateralized lending

How the interest is actually generated

A closer look at step 2. The yield isn't magic — it's the interest borrowers pay to take over-collateralized loans against your pool. Here's the full chain, and why your principal is never at risk.

  1. 1

    Your deposit is lent out

    The pool's stablecoins don't sit idle. They're lent out to borrowers — your community's dollars become the lending capital that the whole system runs on.

    Stablecoin pool
    Borrowerborrows $100
    Pool dollars → lent to borrowers
  2. 2

    Why borrowers want the loan

    A borrower is betting an asset will rise. Rather than sell it, they lock it up and borrow dollars against it — often to buy even more of it. It's leverage: they hold a bigger position and plan to repay the loan later, keeping the upside if the price climbs.

    expects ↑
    borrows $
    Bullish on an asset → borrow dollars against it
  3. 3

    They lock up more than they borrow

    Nobody borrows on trust. To take a $100 loan, a borrower must first lock roughly $150 of their asset as collateral. The loan is always backed by more value than it lends out — that's over-collateralization.

    Collateral locked · $150
    +50% buffer
    Borrowed $100
    $150 locked to borrow $100
  4. 4

    The collateral protects your principal

    That extra collateral is the safety margin. If the asset's price falls, the buffer absorbs the dip; if it ever runs thin, the collateral is automatically sold to repay the loan in full. Losing that collateral is the risk the borrower knowingly takes — and it's exactly what keeps the pool's principal backed 1:1, never at risk.

    • Collateral value
    • Loan floor
    • Auto-liquidates if breached
    Collateral stays above the loan — or it's auto-liquidated
  5. 5

    Borrowers pay interest — that's your yield

    For borrowing, they pay interest the whole time the loan is open. That interest flows back into the pool and settles on top of everyone's principal. It's the yield your community distributes — earned without anyone spending their savings.

    interest
    Principal
    Borrower interest → stacks on top as yield

Community Funding Calculator

Real math, adjustable assumptions — deposits stay yours.

Start from a community like yours

Members

50

Average stake per member

$250

Always theirs — withdrawable anytime

Projection horizon

50 members × $250 each at 7% APY

Monthly funding for your community

$73 /mo

likely $42 at 4% — $100 at 10%

Cumulative funding over 1 yr

Expected

Range at 4–10% APY

Over 12 months, cumulative funding reaches approximately $870, likely between $500 and $1,250. Member deposits of $12,500 stay withdrawable throughout.

$12,500

Total pooled

≈ $72

Per 30-day cycle

≈ $1.46

Per member /mo

Each member effectively gives $1.46/mo — without spending a cent. Their $250 stays withdrawable, 1:1.

Raising this with donations would take ≈ 3 people giving $25 every month — money that's gone.

Put it toward something

Fund a $500 milestone every 7 cycles (~7 months).

Assumptions — 7% APY · +0 members/mo · 30-day cycles

Assumed lending rate (APY)

7%

Variable rate from over-collateralized lending. 7% is a historical average, not a promise.

New members per month

+0

Each new member stakes the average. Affects the projection only.

How we calculate: monthly funding = pool × APY ÷ 12, simple interest — yield is paid out each cycle, so nothing compounds and principal never shrinks. The range shows 4%–10% around your rate because lending rates move.

Illustration, not a promise — rates vary with lending markets. Deposits are always withdrawable 1:1.

Start funding your community goal today

Crowdstaking is completely free and open source.

Quick Deploy

Recommended

Get your community protocol running in minutes with our hosted solution. Perfect for communities who want to focus on their mission, not technical setup.

Timeline

24-48 hours

Technical knowledge

None required

Self-Deploy

Advanced

Deploy and customize your own instance with full control over smart contracts, infrastructure, and governance parameters.

Timeline

1-2 weeks

Technical knowledge

Solidity & Web3

Need help deciding? Our team is here to guide you.

Ready to empower your community?

Join the movement of communities using Crowdstaking to fund real-world impact. Deploy your economic toolkit today.