# JWLSUI Liquid Staking #### **Introduction** 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 **SUI into JWLSUI** will stake it (to receive rewards) but rather will participate in liquidity creation in the **JWLSUI-SUI pool on Cetus.** #### **Minting** JWLSUI is a derivative token that can be minted using SUI. JWLSUI **can** make use of [POL](https://docs.jewelswap.io/other-resources/definitions/jewelswap-protocol-owned-liquidity-pol) by minting 1.1 JWLSUI per deposited SUI. ***This does not mean JWLSUI is not 1:1 backed.*** JWLSUI ***is 1:1 backed***. Please read up on how [POL](https://docs.jewelswap.io/other-resources/definitions/jewelswap-protocol-owned-liquidity-pol) works, what it does, and how the backing is ensured.
*** #### **Staking** Staking JWLSUI will give the user SJWLSUI, which appreciates in value against JWLSUI. The SUI used to mint JWLSUI are staked across multiple validators on Sui. The staked SUI generates rewards during the day. The rewards are paid out, when staking providers distribute yield. Therefore, the ratio between SJWLSUI and JWLSUI rises once a day, as it is triggered daily. SJWLSUI can be transferred between wallets too. This allows you to transfer your ownership to another wallet, without having to unstake your SJWLSUI. *** [**Gauge** ](https://docs.jewelswap.io/sui/gauge)**mechanism** The Gauge mechanism decides which validator gets more SUI delegated towards him. Staked JWLSUI is eligible for voting on [Gauge ](https://docs.jewelswap.io/sui/gauge)governance. *** #### **Rewards** Rewards for JWLSUI staking stem from these sources: * SUI used to mint JWLSUI is staked at various staking providers on Sui to generate yield. *** #### **Unstaking** Unstaking SJWLSUI for JWLSUI is possible **instantly** and at no fees. *** #### Swapping You will be able to swap JWLSUI at varying market rates on Cetus. *** #### **Redemption/Unbonding - Unbonding NFT - Redemption Fees** JWLSUI is redeemable in a 1:1 ratio for normal SUI.\ The unbonding period for JWLSUI is 10 days. When unbonding, you receive an NFT from JewelSwap - **SUI claim NFT**\ This is a so-called [**unstaking/unbonding NFT**](https://docs.jewelswap.io/other-resources/definitions#unstaking-unbonding-nfts)**.** You can use this NFT to send it to a different wallet.\ You need the unstaking NFT to claim your SUI after those 10 days. The NFT proofs your ownership of the unbonding JWLSUI. **Most of the time, there are no fees associated with redeeming JWLSUI.**\ A dynamic fee mechanism may decide to start charging a small fee when redeeming JWLSUI.\ 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.