sVAPOR
sVAPOR details
Staked Vapor (sVAPOR)
Staked Vapor tokens (sVAPOR) is the receipt token that is minted when a user stakes VAPOR. Upon unstaking VAPOR from the staking module, users will burn sVAPOR for VAPOR at a 1:1 ratio.
sVAPOR is unique because when users stake VAPOR, they are effectively converted into sVAPOR, which accrue rebase rewards over time. These rewards are distributed proportionally to the staked tokens, reflecting the compound interest mechanism inherent in the system.
The conversion rate between sVAPOR and VAPOR increases over time, as the amount of deposited VAPOR in the staking module increases through rebase.
For instance, 1 VAPOR is staked at Epoch 0 for 1 sVAPOR. At Epoch X, VAPOR has rebased +10%, and thus, 1 sVAPOR can now be redeemed for 1.1 VAPOR.
Additionally, the rebase rewards sVAPOR holders accrue are governed by the protocol's algorithmic adjustments in response to market conditions and the overall health of the treasury. This mechanism ensures a decentralized and autonomous approach to maintaining the token's value and stability.
Read more about how staking works here:
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