sFuse (Liquid staking)
Fuse network consensus liquid staking model
Instructions for staking:
- Type in how many Fuse tokens you would like to stake.
- Click stake and confirm the transaction in your wallet.
- The approximate APY for your stake will be shown above.
APY formula for $sFuse staking:
The APY is dynamic and slightly changes. The liquid staking contract autocompounds the rewards each time a user stakes or unstakes into the pool
let's break down how sFuse's Fuse liquid staking works, it's not as complex as it might sound.
Think about staking like putting your money in a savings account. In our case, you're "saving" FUSE tokens. When we first started this process, for every 1000 FUSE tokens you decided to save, or "stake," you received 1000 xFUSE tokens. You can think of these sFUSE tokens as placeholders or receipts.
Just like a savings account where your money grows over time, the value of your sFUSE tokens also increases as long as you keep your FUSE tokens staked. For instance, if you kept your tokens staked from one week to the next, the value of your sFUSE tokens will go up. After a few buybacks, when you're ready to "withdraw" your FUSE (which we call unstaking), your original 1000 sFUSE could be exchanged for 1200 FUSE (rate of Fuse to sFuse of the that moment). This number is just an example; but the idea is your staked tokens gain value over time.
Don't worry about the buybacks; our brilliant development team has developed a bot to handle that. This bot operates 24 times a day and it makes sure the FUSE-to-sFUSE ratio is updated automatically. This means, if you don't stake for at least an hour, you might not see an increase in value when you un-stake your sFUSE. It's like if you took your money out of the savings account too soon, you wouldn't see much interest.
- Simply select 'Unstake'
- Enter the amount you wish to unstake in the balance input and sign the transaction on your wallet.
Here is a video tutorial to guide you through the steps: