stS
Overview of stS on Beets
stS is a liquid-staked token that users receive when they stake $S on the Beets platform. The value of stS naturally appreciates in relation to $S thanks to native network staking rewards from validator delegation being automatically compounded within the token.
What are the top highlights of stS?
Access to Sonic Network staking rewards.
Max DeFi interoperability: stS is fully liquid, meaning you can use stS seamlessly across DeFi and access lending markets, liquidity pools, and more without pausing your rewards.
Decentralization: When you stake with Beets, your assets are automatically distributed across a carefully chosen set of validators.
Staking and Unstaking
To stake, users simply need to head to the stS page and select how much $S they wish to deposit. As an alternative to staking, users can swap into stS on DEXs by swapping their $S for stS on the Swap Page.
Unstaking stS involves a 14-day unbonding period aligned with staking on Sonic. After initiating the unstake, users will need to return to the UI after 14 days to claim $S. For instant liquidity, users can swap stS for $S directly on DEXs via the Swap Page. However, note that swapping may offer a less favorable exchange rate than unstaking, depending on the pool’s liquidity.
What is the stS exchange rate and how does it change?
The stS token accrues staking rewards via delegating the underlying $S to trustworthy validators on the network. Every time staking rewards are added to the pool, the stS exchange rate to $S increases.
What are the stS fees?
Due to the management of underlying nodes, validators earn 15% of the overall stS staking rewards. Beets also takes a 10% protocol fee on the rewards after the validator fees. The APY displayed on the UI is the APY the user receives (all fees have been subtracted automatically).
Has stS been audited?
The stS was audited by Spearbit, which is one of the leading smart contract auditors and also audited the SFC contract that is used for S staking on Sonic. Audit report is available for review:
What are the risks of staking?
While Beets has carefully selected and monitored validators, there exists a risk of one or more of the validators being slashed. To combat this, Beets distributes staked S across multiple validators, minimizing the slashing impact arising from the actions of any individual validator.
Although the stS code is vetted and audited there is also always smart contract risk present. There always exists the possibility of malicious users exploiting a vulnerability or a bug in the contract.