Can smart contract addresses be staked?

If you check muesli swap smart contract - Address addr1wy2mjh76em44qurn5x73nzqrxua7ataasftql0u2h6g88lc3gtgpz - Cardanoscan you will see that in the future there is probably going to be substantial amount of ADA locked in smart contracts powering various DEXes. Muesli is not even very popular project compared to Sundae or ErgoSwap and yet their SC has over 50k ADA locked inside.

Is it technically possible for smart contract addresses to be staked? If not then I guess this will be significantly different model to CEXes and other custodial wallet providers, who usually do stake their underlying cardano wallets.

Hello @adaseal

Depending on what the smart contract does I guess. But it is possible for them to create a pointer address to your stake key so all the money being held by smart contract is still staked to the same pool as your wallet. Until ADA is moved or used up. But for this to work your ADA would have to be held there. If you ADA has to be spent, then it wont work.

This may be useful for liquidity providers or waiting pools while in queue to lend ADA. Other smart contracts may have to spend ADA right away so this may not have any effect.

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