JWLASH
JWLASH is a type of derivative token.
Important: Derivative tokens are not redeemable, so minting them is not reversible.
Minting
JWLASH is a derivative token that can be minted using ASH. JWLASH is not growing in value and is always backed 1:1 by veASH.
JWLASH can make use of POL by minting 1.1 JWLASH per deposited ASH. This does not mean JWLASH is not 1:1 backed. JWLASH is 1:1 backed. Please read up on how POL works, what it does, and how the backing is ensured.
Staking
Staking JWLASH on JewelSwap will give the user more JWLASH.
Rewards are paid out based on a 7-day epoch. This means that rewards are being accumulated for 7 days, and after this 7-day-epoch, the rewards are paid out to the stakers, relative to their staked amount.
Other utility: Gauge
Most of the primary tokens used to mint JWLEGLD (in accordance with POL) are being delegated to various whitelisted validators to earn rewards. The Gauge mechanism decides which validator gets more EGLD delegated towards him.
Staked JWLASH is eligible for voting on Gauge governance.
Rewards
Rewards for JWLASH staking stem from these sources:
Modules where JewelSwap utilizes AshSwap (in particular the veASH), 15% of user-generated rewards are used to buy more JWLASH from the open market and given to stakers.
Unless the market ratio between JWLASH:ASH is (near) 1:1, then the user-generated rewards are used to mint more JWLASH instead. Whatever gives the highest rewards to stakers.
Rewards can be bought from the open market to provide protocol-driven buy pressure to JWLASH.
Also, the POL protocol owned liquidity earns rewards in ASH, and the rewards are used to buy more JWLASH from the open market. The purchased JWLASH is used to bribe Ashswap Farms or given to stakers.
Because of the difference in staked derivative tokens to existing derivative tokens, the APR for the staked tokens is typically higher.
Unstaking
Unstaking JWLASH from staking is possible after the initial lock up period has passed. When you first stake JWLASH, it is locked for 7 days. After these 7 days have passed, you can keep your JWLASH in staking or remove it from staking at any time, instantly.
If you deposit more JWLASH or reinvest your rewards by depositing them again, the lock will reset.
Swapping
You can swap JWLASH at varying market rates on Ashswap.
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