
Suilend Protocol launches sSUI to increase liquid staking on SUI
Suilend Protocol has unveiled sSUI, a liquid staking token (LST) built using the SpringSui Standard to solve liquid staking.
Author: Sahil Thakur
Written On: Fri, 01 Nov 2024 04:37:11 GMT
Suilend Protocol has unveiled sSUI, a liquid staking token (LST) built using the SpringSui Standard. According to the team, this launch aims to transform SUI staking with features like instant unstaking and increased liquidity. Currently, liquid-staked SUI makes up only 1.32% of staked assets on Sui, compared to higher percentages on Solana and Ethereum. Suilend hopes sSUI will bridge this gap.
Key Benefits of sSUI
- Instant Unstaking: The SpringSui Standard allows users to unstake assets instantly, boosting liquidity and reducing depegging risks.
- Integration in DeFi: Users can stake SUI, receive sSUI, and use it freely in DeFi platforms like Suilend.
- Partnerships for Wider Adoption: AftermathFi and Studio Mirai are adopting the SpringSui Standard to offer their own LSTs on Sui.
How sSUI Works
sSUI’s architecture builds on the SpringSui Standard, which lets other projects deploy liquid staking tokens (LSTs) without permission and free of cost. Users stake their SUI and receive sSUI tokens, which can be redeemed instantly for the underlying SUI through SIP-33, SpringSui’s instant unstaking mechanism. This feature ensures sSUI’s liquidity even in volatile markets, unlike other tokens that face depegging risks. The value of sSUI increases as staking rewards accumulate, providing users a secure way to maintain asset liquidity while earning rewards.
Staking Rewards and Fees
Staking rewards for sSUI come from network staking, validator performance, and fees:
- Mint, Spread, and Redemption Fees: Fees support the protocol, covering costs like minting and unstaking.
- Validator Performance: Validator activity directly affects user returns. Higher-performing validators generate more staking rewards, while poor performance or slashing risks can impact yields.
Security and Risk Mitigation
Suilend mitigates risks through rigorous contract audits and dynamic reallocation to top-performing validators. This safeguards users’ assets and protects against potential vulnerabilities in smart contracts. Suilend also encourages users to assess validator reliability to further secure their staked assets.
Growing Liquid Staking on Sui
With sSUI, Suilend aims to boost liquid staking on Sui. The token increases staked asset utility within the ecosystem, allowing users to stake, earn rewards, and still access liquidity. As a result, sSUI promises to drive broader adoption of liquid staking across the Sui network.
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In this article
Key Benefits of sSUI
How sSUI Works
Staking Rewards and Fees
Security and Risk Mitigation
Growing Liquid Staking on Sui
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