S/JWLEGLD
Last updated
Last updated
JWLEGLD is a derivative token that can be minted using EGLD.
JWLEGLD can make use of by minting 1.1 JWLEGLD per deposited EGLD. This does not mean JWLEGLD is not 1:1 backed. JWLEGLD is 1:1 backed. Please read up on how works, what it does, and how the backing is ensured.
Staking JWLEGLD will give the user SJWLEGLD, which is appreciating in value against JWLEGLD every day after MultiversX epoch change.
The EGLD used to mint JWLEGLD are staked across multiple validators on MultiversX. The staked EGLD generate rewards during the day. The rewards are paid out at the end of each blockchain epoch. Therefore, the ratio between SJWLEGLD and JWLEGLD rises once a day, after the end of each epoch.
SJWLEGLD can be transferred between wallets too. This allows you to transfer your ownership to another wallet, without having to unstake your SJWLEGLD.
mechanism
Most of the primary tokens used to mint JWLEGLD (in accordance with ) are being delegated to various whitelisted validators to earn rewards. The decides which validator gets more EGLD delegated towards him.
Staked is eligible for voting on governance.
Rewards for JWLEGLD staking stem from these sources:
EGLD used to mint JWLEGLD is staked at various staking providers on MultiversX to generate yield.
Any fees from the go towards SJWLEGLD as well.
Unstaking SJWLEGLD for JWLEGLD is possible instantly and at no fees.
You can swap JWLEGLD at varying market rates on Ashswap.
Most of the time, there are no fees associated with redeeming JWLEGLD. A dynamic fee mechanism may decide to start charging a small fee when redeeming JWLEGLD. This mechanism adds a redemption fee in case of high redemption requests.
All collected fees of this mechanism go to the stakers.
10% of the generated rewards from EGLD staking are kept by JewelSwap. 90% are going to SJWLEGLD.
JWLEGLD is redeemable in a 1:1 ratio for normal EGLD. The unbonding period for JWLEGLD is (unbonding time). 10 epochs is usually 10 days on the MultiversX network.
When unbonding, you receive an NFT from JewelSwap. UJWLEGLD NFT This is a so-called . You can use this NFT to send it to a different wallet, trade it on NFT Marketplaces or . You need the NFT (which is essentially a receipt) to claim your assets after the unbonding time passed. The NFT proofs your ownership of the unbonding assets.
This is to prevent bank-run scenarios, protect leveraged farms from forced closure, protect JWLEGLD LP liquidity, allow liquidity to be removed from if needed and also stabilize the SJWLEGLD APR. The intention of this mechanism is solely to protect users and the stability of the ecosystem.