.png){kind=logo}
Yield from Leveraged Liquid Staking
Yield from Leveraged Liquid Staking comes from several factors:
1. Staking Yield: Earnings from staking TON.
2. stXP Rewards: Continual accrual of stXP on stTON.
3. Interest Income: Earnings from supplying stTON as collateral.
4. Interest Payments: Fees incurred when borrowing tokens.
When you supply stTON to platforms like EVAA, you earn interest. If you borrow, you pay interest.
Users can use stTON as collateral, borrow TON, and stake it in bemo again to receive more stTON. This allows users to continue earning staking rewards and stXP, but on a larger scale.
Example
- Exchange Rate: 1 stTON = 1.04 TON.
- Initial Deposit: User deposits 100 TON in bemo, receiving 96.2 stTON.
- Supplying stTON: The user supplies 96.2 stTON to EVAA as collateral and borrows 60 TON (60% of the collateral value).
- New stake: The user restakes the borrowed 60 TON in bemo, receiving 57.7 stTON.
This results in a 60% larger position, leading to 60% more staking rewards and stXP. Repeating this process can more than double the yield, potentially increasing it by over 2.5 times.