About stWEMIX
Issuance Mechansim
The stWEMIX token is minted through the Liquid Staking program of WEMIX.Fi, the decentralized finance platform of WEMIX3.0. WEMIX staked by users through the Liquid Staking program is delegated to the WONDER with the highest block rewards and is then locked in the Governance Contract. Staking rewards are calculated based on WONDER’s share of the WEMIX locked in the Governance Contract, determining the WEMIX-stWEMIX exchange rate.
The detailed process of stWEMIX token minting is as follows:
Users deposit WEMIX through the Liquid Staking program of WEMIX.Fi
The deposited WEMIX is transferred to the stWEMIX contract and staked in the Governance Contract following the User Deposit Path
At this stage, to re-stake(Compound) the previously distributed staking rewards from the Reward Pool, WEMIX is transferred to the stWEMIX contract and then staked in the Governance Contract following the Compound Path.
Simultaneously, during the process of claiming and compounding the accumulated WEMIX in the Reward Pool, 10% of the accrued rewards in the Reward Pool are converted to stWEMIX tokens and collected as protocol fees. These fees are then transferred to the Treasury according to the policy and subsequently burned
The exchange rate between the user's WEMIX and the stWEMIX tokens to be distributed is determined during this process
The exchange rate is calculated by the following formula:
* StakingAmount : the amount of WEMIX tokens previously staked in the Governance Contract
** ClaimAmount : the amount of WEMIX tokens accumulated in the Reward Pool
*** feeWEMIX : fee for Compound, 10% of the ClaimAmount
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