Protocol Mechanics
stS is a liquid-staked token that users receive when staking S on the Beets platform. Its value naturally appreciates relative to S, as staking rewards from validator delegation are automatically compounded within the token. When users stake S, their tokens are pooled into a staking contract, which delegates the total stake to a decentralized network of vetted validators. These validators generate rewards through Sonic’s proof-of-stake consensus protocol, with a portion allocated to the stS staking contract. As rewards accumulate, the value of stS increases relative to S, reflecting the growing value of the pooled stake.
Key Highlights
- Effortless Exposure to Staking Rewards: stS provides users with access to staking rewards from the Sonic Network without the need for managing staking infrastructure or delegations.
- Dynamic Value Growth: Each time staking rewards are added to the pool, the exchange rate of stS to S increases, ensuring continuous appreciation of stS value.
- Full Liquidity: stS is fully liquid, enabling users to seamlessly integrate it into DeFi applications, gaining exposure to additional forms of yield while still earning the underlying staking rewards.
- Enhanced Network Security: stS enhances the economic security of the Sonic network by ensuring that S is distributed across a diverse set of carefully vetted validators, thus improving decentralization and security.
Staking and Unstaking
To stake, users can visit the stS page and select the amount of S they wish to deposit. Alternatively, users can swap S for stS directly on DEXs through the Swap Page. Unstaking stS requires a 14-day unbonding period, in line with the staking process on Sonic. After initiating the unstake, users must return to the UI after 14 days to claim their S. For instant liquidity, users can swap stS for S directly on DEXs via the Swap Page.
Please note that swapping into or out of stS may result in a less favorable exchange rate compared to the unstaking process, depending on the pool’s liquidity.