LIQUID Staking

Stake your WEMIX in LIQUID Staking while participating in other on-chain activities with liquid stWEMIX tokens.

  • WEMIX can be exchanged for stWEMIX.

  • The value of stWEMIX increases based on LIQUID Staking

  • You can exchange the acquired stWEMIX for another coin through Swap, deposit it in Pool and Lend or exchange stWEMIX back to WEMIX to earn additional revenue.

LIQUID Staking and stWEMIX

The Liquid Staking program is designed to address the chronic problem of ‘staking’, which restricts long-term withdrawals and transfers once assets are deposited. Unlike Wonder Staking, where deposited assets are frozen for a long time and other on-chain activities are restricted, the Liquid Staking program allows users to enjoy the value appreciation of their assets as if they had staked them by exchanging their deposited assets for stWEMIX tokens. In addition, it allows users to gain more freedom by enabling them to swap or pool deposit stWEMIX tokens.

WEMIX deposited in the Liquid Staking program is delegated to the Wonder with the lowest fee and highest distribution rate. When a user deposits WEMIX, it is delegated to the Wonder set according to the protocol and exchanged for stWEMIX with a combined value of principal and block rewards based on the total deposit amount and distribution rate of Wonder. As the amount deposited in the Liquid Staking program increases, the stake ratio of Wonder increases and the value of stWEMIX increases.

When the protocol discovers a Wonder that provides a higher distribution rate while managing the Liquid Staking volume, it delegates the volume to another Wonder through ‘Move Wonder’. During the period when Move Wonder is in progress, deposits are possible, but withdrawals of stWEMIX are temporarily restricted for about 7 to a maximum of 14 days. If you wish to withdraw immediately, you can trade at market price through the stWEMIX-WEMIX pool. If the Wonder is changed while waiting for withdrawal after applying for withdrawal, a token in the form of NFT is issued with the user’s withdrawal application information stored so that withdrawal can be resumed after the Wonder is changed. The NFT issued at this time is similar in concept to LP tokens received by depositing assets in a Pool.

Users can deposit WEMIX in the Liquid Staking program and use the issued stWEMIX to secure liquidity in the market. For example, it is possible to sell stWEMIX in the stWEMIX-WEMIX pool and exchange it for WEMIX and then exchange it for WEMIX$ or engage in economic activities such as borrowing WEMIX or WEMIX$ with stWEMIX as collateral. The exchange rate (market price) of the stWEMIX-WEMIX pool is determined by the market, so there may be a difference between the issuance price and the market price. Depending on the participants’ objectives, they can buy stWEMIX to realize the profit generated or buy it to secure liquidity even if they have to bear the difference.

Exchange of WEMIX and stWEMIX

When a user deposits WEMIX in the Liquid Staking program, they receive stWEMIX according to the exchange rate (issuance price). As the value of the staking reward generated by the deposited WEMIX is added up, the value of stWEMIX increases and the exchange rate changes. However, 10% of the staking reward is deducted as a fee and stored in the protocol Treasury.

For example, suppose a user deposits 50 WEMIX. According to the initial exchange rate, the user receives 50 stWEMIX and the deposited 50 WEMIX continues to receive a portion of the block reward. Over time, when stWEMIX is redeemed, the user can receive WEMIX worth the sum of principal and block rewards.

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