Article Summary, Automatically Generated By AI
About Staked WEMIX
Summary
- stWEMIX is a Liquid Staking Token (LST) representing staked WEMIX on WEMIX.Fi.
- Users can deposit WEMIX and receive stWEMIX, which can be traded, exchanged, borrowed, or used for liquidity purposes.
- WEMIX 3.0 governance uses a staked-based Proof of Authority (SPoA) consensus algorithm.
- 40 Node Council Partners (NCPs) operate secure validating nodes for WEMIX 3.0 Mainnet, staking 1.5M WEMIX each.
- Permanent Minting Reward (PMR) is distributed to NCPs (
About Staked WEMIX: Unlocking the Power of Decentralized Finance
Abstract
stWEMIX is a Liquid Staking Token (LST) that embodies the staked value of WEMIX on WEMIX.Fi. By depositing their WEMIX into WEMIX.Fi, users receive stWEMIX, which can be freely traded, exchanged, borrowed against, or utilized for various liquidity purposes. This unlocks a vast array of opportunities for users to optimize the utility of their asset and potentially generate additional yield, complementing the staking rewards.
WEMIX3.0 Governance: A Comprehensive Overview
At the core of the WEMIX 3.0 blockchain architecture lies the Staked-based Proof of Authority (SPoA) consensus algorithm. The WEMIX 3.0 staking program has undergone significant transformations in tandem with systematic governance updates, progressing from Grand Staking in Phase 1 to a more advanced delegated staking module in Phase 2.
The esteemed 40 WONDERS, also referred to as Node Council Partners (NCPs), comprise 40 distinguished members entrusted with the responsibility of operating secure validating nodes for the WEMIX 3.0 Mainnet. This elite group consists of Technology Sponsors, who contribute to the secure operation and innovation of WEMIX 3.0, and Ecosystem Sponsors, who facilitate the establishment of a seamless on-chain/off-chain ecosystem experience via WEMIX 3.0. Each NCP is required to stake 1.5 million WEMIX, and the Permanent Minting Reward (PMR) is automatically distributed among NCPs (40%), Grand Staking (10%), the Eco Fund (25%), and Maintenance (25%). Participants in Grand Staking are eligible to receive a staking reward of 10% of the PMR, proportionate to their stake. However, prior to the implementation of Phase 2, participants in WEMIX Grand Staking were unable to withdraw from the staking pool.
In Phase 2, a paradigm shift is introduced to foster active contribution, as the fixed 1.5M WEMIX staking requirement per validator node gives way to a competitive staking system. This update heralds the replacement of Grand Staking with WONDER Staking, a novel framework wherein WEMIX is delegated to 40 esteemed NCPs who actively participate in WEMIX governance. Consequently, the 10% allocation of the PMR previously reserved for WEMIX Grand Staking participants is eliminated, and the NCP reward is bolstered from 40% to 50%, thereby recalibrating the initial PMR distribution ratio.
The Vision of stWEMIX: Empowering a New Era of Innovation
The primary objective of WEMIX3.0 Liquid Staking is to empower users to engage in staking while preserving the full utility of WEMIX. The key goals of this innovative solution include: enabling users with stWEMIX tokens to not only earn staking rewards but also unlock the value of their staked assets. Unlike traditional staking programs offered by centralized exchanges (CEX), WEMIX3.0 Liquid Staking minimizes the risk of asset loss due to software errors or malicious third-party activities. Furthermore, it facilitates the utilization of stWEMIX in various protocols, including DeFi applications, and provides a compelling alternative to CEX staking programs, where both services compete to benefit token holders by granting access to staking rewards.
The Architectural Framework
The stWEMIX token is minted via the Liquid Staking program of WEMIX.Fi, the decentralized finance platform of WEMIX3.0. Through this program, WEMIX staked by users is delegated to the WONDER with the highest block rewards, subsequently locked in the Governance Contract. The staking rewards are calculated based on WONDER’s share of the WEMIX locked in the Governance Contract, thereby determining the WEMIX-stWEMIX exchange rate.
Economic Token Structure
stWEMIX embodies the staked WEMIX within the WEMIX.Fi Liquid Staking Program, effectively consolidating the initial deposit value and accrued staking rewards into a single token. As a standard ERC-20 token, stWEMIX affords unparalleled versatility, seamlessly facilitating trading, investing in DeFi protocols, and a multitude of other opportunities.
In Phase 1, users stake WEMIX, which is subsequently sent to the Governance Contract, where it is locked, and participants receive a corresponding allocation of stWEMIX tokens. This allocation is calculated based on the ratio of total circulating stWEMIX tokens to the overall quantity of WEMIX locked within the Governance Contract. The total stWEMIX tokens encompass all WEMIX staked (Grand and Liquid), with staking rewards amounting to 10% PMR.
During Phase 1, staking withdrawals were subject to restrictions, allowing solely for the conversion of WEMIX to stWEMIX. The exchanged stWEMIX could be held for an extended duration to accrue staking rewards or liquidated through the stWEMIX-WEMIX pair pool.
In Phase 2, users can mint stWEMIX tokens by staking WEMIX, which are subsequently transmitted to the Governance Contract via the Wonder Staking contract. The quantity of stWEMIX tokens to be minted is determined by the ratio of the total circulating supply of stWEMIX tokens to the total amount of WEMIX locked in the Governance Contract. The aggregate number of stWEMIX tokens encompasses the total amount of WEMIX staked by users (including WONDER) and the staking rewards (PMR 50%). Upon the launch of Phase 2, users can exchange their stWEMIX for WEMIX through two methods: by unstaking WEMIX following a 7-day unbonding period, thereby facilitating bidirectional exchange between WEMIX and stWEMIX.