Advanced Concepts

LiquiStake mechanics

Staked wrapped SX Token (stWSX)

Rebase Mechanism

stWSX Explained:

  • Definition: stWSX, or Staked Wrapped SX Token, is a tokenized representation of staked WSX tokens. It enables users to retain liquidity of their assets while participating in staking.
  • Functionality: Upon staking WSX tokens, users receive an equivalent amount of stWSX. This token mirrors the value of the staked WSX and accumulates staking rewards over time.

Mathematical Representation:

  • Initial Staking: Suppose a user stakes 100 WSX tokens. These are converted into 100 stWSX tokens, with the original 100 WSX tokens locked in the stWSX vault.
  • Rebase Mechanism: As staking rewards accrue, the value ratio within the vault increases. For example, if 10 WSX worth of rewards are accrued, the value ratio becomes greater than 1:1 for stWSX to WSX.
  • Automatic Rebasing: stWSX tokens automatically rebase to reflect the accrued rewards. The user's stWSX balance will increase proportionally to represent the accumulated rewards.

Rebase Mechanism

Understanding Rebase:

  • Purpose: The rebase mechanism dynamically adjusts the supply of stWSX to represent the accrued staking rewards, increasing the value of each stWSX token over time.
  • Calculation: Rebasing is calculated based on the total staking rewards generated by the underlying WSX tokens in the withdrawal vault.

Rebase Formula:


Wrapped Staked Wrapped SX Token (wstWSX)

wstWSX Compared to stWSX

Key Differences:

  • Non-Rebasing Nature: wstWSX is a non-rebasing token, maintaining a constant supply. It encapsulates the cumulative value of staked assets plus accrued rewards.
  • Stability: wstWSX is designed for stability, offering a predictable value, which is advantageous in fluctuating market conditions.

Utility from wstWSX

Advantages of wstWSX:

  • Predictable Value: wstWSX's stable value makes it an attractive option for use in various DeFi protocols, such as collateral in lending platforms or as a stable asset in liquidity pools.
  • DeFi Integration: Its predictability and stability make wstWSX a preferred choice for integration into diverse DeFi applications.

wstWSX Formula:


LiquiStake Breakdown