Exchange rate
The exchange rate of LSW:WAX ensures accuracy and fairness in liquid staking. It starts at 1:1, dynamically updating based on accrued staking rewards.
Last updated
The exchange rate of LSW:WAX ensures accuracy and fairness in liquid staking. It starts at 1:1, dynamically updating based on accrued staking rewards.
Last updated
TotalNativeWAX = Staked WAX+ accrued staking reward from DeFi
TotalLiquidStakedWAX = LSW minted
For example:
The pool will initially start at a 1:1 ratio and will be dynamically updated based on the accrued staking rewards. To understand how this works, let’s consider an example:
Avral is LSWs first user and he stakes 100 WAX, he then receives 100 LSW in return.
Let’s assume that time has passed and 10 rewards in WAX were accrued.
Now, the new exchange rate would be:
If Avral decides to withdraw his WAX, he will receive 110 WAX for 100 LSW based on the new exchange rate.