🥩JWLSOL Liquid Staking
Last updated
Last updated
JewelSwap introduces innovative Dual-Token Liquid Staking, allowing everyone to benefit from the higher APY than traditional staking providers due to the two-way mechanism of staking: minting and staking. Fundamentally not all users, who converted SOL into JWLSOL will stake it (to receive rewards) but rather will participate in liquidity creation in the JWLSOL-SOL pool on Orca.
JWLSOL is a derivative token that can be minted using SOL.
JWLSOL can make use of POL by minting 1.1 JWLSOL per deposited SOL. This does not mean JWLSOL is not 1:1 backed. JWLSOL is 1:1 backed. Please read up on how POL works, what it does, and how the backing is ensured.
Staking JWLSOL will give the user SJWLSOL, which appreciates in value against JWLSOL.
The SOL used to mint JWLSOL are staked across multiple validators on Solana. The staked SOL generates rewards during the day. The rewards are paid out, when staking providers distribute yield. Therefore, the ratio between SJWLSOL and JWLSOL rises once a day, as it is triggered daily.
SJWLSOL can be transferred between wallets too. This allows you to transfer your ownership to another wallet, without having to unstake your SJWLSOL.
Gauge mechanism
The Gauge mechanism decides which validator gets more SOL delegated towards him.
Staked JWLSOL is eligible for voting on Gauge governance.
Rewards for JWLSOL staking stem from these sources:
SOL used to mint JWLSOL is staked at various staking providers on Solana to generate yield.
Unstaking SJWLSOL for JWLSOL is possible instantly and at no fees.
You will be able to swap JWLSOL at varying market rates on Orca.
JWLSOL is redeemable in a 1:1 ratio for normal SOL. The unbonding period for JWLSOL is 10 days.
When unbonding, you receive an NFT from JewelSwap - SOL claim NFT This is a so-called unstaking/unbonding NFT.
You can use this NFT to send it to a different wallet. You need the unstaking NFT to claim your SOL after those 10 days. The NFT proofs your ownership of the unbonding JWLSOL.
Most of the time, there are no fees associated with redeeming JWLSOL. A dynamic fee mechanism may decide to start charging a small fee when redeeming JWLSOL. This mechanism adds a redemption fee in case of high redemption requests. This system is not yet in place and will be added in case further DeFi integrations for JWLXRD are implemented in the future.
