Liquid Staking with degenSUI

degenSUI represents the tokenized version of SUI, implemented to simplify the staking process.

Implemented via the dSuiVault shared object, this layer facilitates the staking of SUI tokens in return for degenSUI. Essentially, degenSUI represents the tokenized form of staked SUI, streamlining the staking process and reducing the complexity usually associated with asset locks and staking infrastructure maintenance. This mechanism allows users to earn staking rewards and contribute to network security more easily.

Staking and Unstaking mechanism

  • SUI can be staked or distributed across a list of whitelisted validators maintained by the DAO governance.

  • degenSUI can be swapped for the original SUI along with staking rewards, minus protocol fees.

    • Instant unstaking entails a service fee (initially 2%) if liquidity is accessible.

    • Alternatively, delayed unstaking is provided without service fees, granting users a claim receipt that allows them to retrieve the underlying SUI and rewards after the unstaking period (one epoch).

The following public functions are executed on the degenSUI vault every epoch :

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