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Liquid Staking

The Liquid Staking service on WEMIX.Fi enables participation in staking while maintaining liquidity and flexibility. Unlike traditional staking, which locks tokens for extended periods, liquid staking issues liquid staking tokens that represent the staked position.

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How Liquid Staking Works

When tokens are deposited for liquid staking, the platform issues stWEMIX - a liquid staking token that represents the staked position plus accumulated rewards. This liquid staking token increases in redemption value over time as staking rewards are earned. stWEMIX can be held to continue earning rewards, or redeemed back to WEMIX.

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Key Benefits

  • Maintained Liquidity: Staked assets remain accessible through stWEMIX

  • Continuous Rewards: Rewards accrue automatically without manual claiming

  • Flexibility: Exit staking positions through exchanging stWEMIX

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Understanding Liquid Staking Token: stWEMIX

Liquid staking tokens (e.g., stWEMIX) are receipt tokens representing both the principal staked amount and all accumulated rewards. These are balance-invariant tokens with increasing redemption value over time — the token balance in the wallet remains constant while the amount of native tokens redeemable per stWEMIX increases as rewards accrue.

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Example

  • Initial deposit: 1,000 WEMIX → receive 1,000 stWEMIX (1:1 ratio)

  • After 6 months at 5% APY: 1,000 stWEMIX → redeemable for 1,025 WEMIX (1:1.025 ratio)

  • After 12 months at 5% APY: 1,000 stWEMIX → redeemable for 1,050 WEMIX (1:1.05 ratio)

The stWEMIX balance remains 1,000 throughout, but its redemption value increases from 1,000 → 1,025 → 1,050 WEMIX as rewards accumulate.

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Fee Structure

Liquid Staking on WEMIX.Fi does not charge trading fees for staking or unstaking. Gas fees paid in WEMIX are required for all liquid staking transactions including deposits, redemptions, and any transfers of stWEMIX.

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