Liquid Staking via dSUI

What is degenSUI?

degenSUI (dSUI) is a yield-bearing token that represents your ownership of SUI staked via DegenHive.

It leverages the recently introduced SIP-31 and SIP-33 standards on Sui mainnet, offering infinite liquidity through instant unstaking while minimizing depegging risks.

dSUI ensures efficient management of staked SUI across StakingPools, making it future-proof and scalable as network demands increase.

How does it work?

When you stake your SUI, you receive a StakedSui object in return. Our DSUI_VAULT shared object holds these StakedSui objects and issues dSUI to the user. This token represents your stake and can be freely traded or used within the Sui ecosystem.

DSUI leverages SIP-31 and SIP-33 standards and allows instant unstaking to the users (similar to springSUI), eliminating the risk of depegging.

How does validator whitelisting work, and is it good for decentralization?

At launch, degenSUI will stake SUI equally across 5 whitelisted validators. As staking activity grows, the protocol gives priority to validators with the least amount of SUI staked via DegenHive.

This ensures a balanced distribution and prevents any single validator from accumulating too much stake. Users can choose from any of the active validators, offering flexibility and promoting decentralization.

Once DegenHive's governance is live, the community will have the power to vote on adding or removing validators from the whitelist.

What fees are charged?

Rewards Fee: The protocol takes a 10% fee on staking rewards. For example, if your staked SUI earns 100 SUI in rewards, 10 SUI will be collected as a protocol fee, and 90 SUI will be distributed to stakers by increasing the dSUI-to-SUI exchange rate. Redemption Fee: A minimum fee of 1 basis point (bp) applies when redeeming dSUI for SUI. Redeeming 1,000 dSUI at 1 bp would incur a 0.1 SUI fee. Collected fees are used to buy back HIVE and HONEY tokens, which are distributed to dragon-bees, boosting their energy and health points while generating yield for their owners.

What are the risks?

Smart Contract Risk: Like any liquid staking token, dSUI is susceptible to smart contract exploits. If the contract is hacked or the unstake mechanism fails, users may lose funds or face depegging risks. Validator Risk: Staking rewards are subject to validator performance. Poor performance or slashing penalties can reduce earnings or, in extreme cases, result in the loss of staked assets.