Staked Assets (sAssets)

sAssets are liquid, tokenized representations of staked (bonded) assets PoS blockchain. They provide stakeholders with liquidity over their staked assets, allowing the locked value of staked assets to be used in financial applications.

In Orchai Liquid Staking, there are two types of sAssets:

• s[Token] (Staked Token)

• sc[Token] (Staked Compound Token)

With s[Token] and sc[Token], holders can earn block rewards while maintaining liquidity and fungibility.

The difference between the two tokens is how they manage the staking rewards:

• s[Token]'s rewards are sent continuously to a reward contract from which users can claim their rewards.

• sc[Token]'s rewards are compounded: Acquired rewards are re-staked, increasing the underlying amount of staked Token.

Concepts

Exchange Rate

There are exchange rates for s[Token] and sc[Token]. The exchange rate is the rate of conversion used when s[Token] (sc[Token]) is minted or redeemed. Defined as the amount of bonded Token per s[Token](sc[Token]) in existence, the value initially starts with 1, and decreases with slashing events.

$$\text{sToken (scToken) Exchange Rate} = \frac{\text{Token Staked For sToken (scToken)}}{\text{sToken (scToken) Supply}}$$

Shared Slashing Risk

s[Token] and sc[Token] tokens equally share all losses from slashing events of approved validators. Slashing events decrease the s[Token] and sc[Token] exchange rates, lowering the calculated value of the respective tokens. The sc[Token] token exchange rate is not pegged, while s[Token]'s exchange is pegged $1$ by applying a peg fee to all bond and unbond requests whenever the exchange rate is below $1$

The protocol applies a fee of 0.5% to s[Token] mints and burns whenever the exchange rate is below 1, targeting a gradual recovery to a one-to-one peg.

Usage

Minting

s[Token] (sc[Token]) tokens are minted by delegating Token via the Orchai Liquid Staking. The amount of s[Token] (sc[Token]) minted is dependent on the current s[Token] (sc[Token]) exchange rate. Minted s[Token] (sc[Token]) amounts will be greater than the s[Token] (sc[Token]) amount sent when the s[Token] (sc[Token]) exchange rate is below 1.

Redeeming

Slashing occurrences between the time of request and withdrawal may affect the final amount later withdrawn.

Any s[Token] (sc[Token]) holder can redeem their tokens for their underlying bonded Token. Redemption is a two-step process:

1. Requesting to unbond s[Token] (sc[Token]) .

2. Withdrawing undelegated Token.

Due to Oraichain's unbonding period, a complete redemption cycle requires at least 14 days to finish (16 days maximum) for sORAI and scORAI, at least 21 days to finish (24 days maximum) for scATOM

Price

The price of s[Token] (sc[Token]) depends on the s[Token] (sc[Token] exchange rate and the price of ORAI.

Since s[Token]exchange rate will always tend to be equal to 1, so the price of s[Token] will be the same as Token most of the time.

And because the reward obtained outweighs the slashing, the sc[Token] exchange rate will increase over time. The price of sc[Token] will continue to rise in comparison to the price of Token.

$$\text{sToken (scToken) Price} = \text{Token Price} \times\text{sToken (scToken) Exchange Rate}$$

Token Contract Address

sORAI

Orai Scan URL

sORAI  = orai1w9ee6szd3fgatyz7v78rktekuqjntfeszh9azuz8drz9nl0yuzwqm26v23

scORAI

Orai Scan URL

scORAI = orai1065qe48g7aemju045aeyprflytemx7kecxkf5m7u5h5mphd0qlcs47pclp

scATOM

Orai Scan URL

scATOM = orai19q4qak2g3cj2xc2y3060t0quzn3gfhzx08rjlrdd3vqxhjtat0cq668phq