How Liquid Staking Works
🚀 The Innovation
Unlike traditional staking that locks your tokens, you receive liquid sbFT tokens that automatically appreciate in value through an increasing exchange rate. Earn 8% APY continuouslywithout manual claiming while maintaining full liquidity!
1. Stake XFI → Receive Liquid sbFT
Stake your XFI tokens and instantly receive sbFT tokens at the current exchange rate. These sbFT tokens are fully liquid and tradeable.
Example: If exchange rate is 1.05, stake 100 XFI → receive ~95.24 sbFT (after 1% fee)
2. Auto-Compounding Through Exchange Rate
Your sbFT tokens automatically become worth more XFI over time through exchange rate appreciation:
✨ No manual claiming needed - rewards compound every second automatically!
3. Stay Liquid - Use Your sbFT
- Trade: Sell sbFT on our built-in marketplace for USDC
- Transfer: Send sbFT to other wallets or protocols
- Governance: Vote on protocol proposals with your sbFT
- Hold: Keep earning as exchange rate appreciates
4. Flexible Exit Options
Regular Unstaking
Request unstake → Wait 7 days → Get full XFI value
Best rate, just requires patience
Emergency Unstaking
Pay 5-25% penalty → Get XFI instantly
For urgent liquidity needs
Marketplace Trading
Sell sbFT for USDC → Market-driven pricing
Immediate settlement
5. Dual Reward System
Primary: Auto-Compounding (8% APY)
Exchange rate increases continuously based on 8% annual yield. Your sbFT automatically becomes worth more XFI - no action required!
Secondary: Master NFT Distributions
Weekly revenue sharing from platform fees (staking, trading, penalties). These rewards are claimable separately in XFI tokens.
6. Governance Participation
Your sbFT tokens give you voting power in protocol governance. Participate in decisions about reward rates, fee structures, and protocol upgrades. More sbFT = more voting influence.
Traditional vs Liquid Staking
| Feature | Traditional Staking | Stake and Bake |
|---|---|---|
| Token Status | Locked | Liquid (tradeable) |
| Reward Claiming | Manual | Automatic |
| Compounding | Manual | Automatic (every second) |
| Exit Options | Fixed unlock period | Multiple flexible options |
| Gas Costs | High (frequent claiming) | Low (minimal transactions) |
Fee Structure
Staking Fee
1%
Deducted when staking XFI
Emergency Unstaking
5-25%
User-selectable penalty
Trading Fee
2.5%
Marketplace transactions
Quick Summary
Stake XFI → Get liquid sbFT tokens → Earn 8% APY automatically through exchange rate appreciation → Stay fully liquid with multiple exit options → Participate in governance and earn bonus distributions