What is stCSPR?

This page describes information regarding stCSPR.

Background

stCSPR serves as an token that represents an individual account's ownership share in the total CSPR tokens that have been staked, along with the accumulated rewards. stCSPR has a decimal of 9 which is equal to that of CSPR . The balance of stCSPR can only be altered through specific actions, such as transfers, minting (creation of new stCSPR tokens), and burning (destruction of stCSPR tokens). The total supply of stCSPR does not rebase, remaining constant over time.

The value of stCSPR in terms of CSPR is subject to change and is not fixed. Holders of stCSPR have the flexibility to convert any amount of it to CSPR or vice versa at any given time, using a predetermined fixed rate. This fixed rate is the same for all users and remains consistent at any given moment. Typically, the rate is updated once a day when rewards are generated from staking CSPR. To obtain the current conversion rate, users can access the stCSPR contract and retrieve the relevant information. This mechanism ensures that stCSPR holders can easily switch between staked assets and liquid CSPR based on their preferences and market conditions.

How is rate calculated and updated?

• rate starts with an initialized value of 1 CSPR: 1 stCSPR = 1 CSPR

• When the first user stakes an amout of X CSPR into our liquid staking, the user receives an amount of X stCSPR as the rate is initialized at 1.

• When there is an additional rewards of R CSPR generated by staking, the rate is updated as follows: updatedRate = currentRate + R * (100 - ProtocolFee)/ (total supply of stCSPR) / 100

• The Protocol Fee (ProtocolFee) is set at 10%

• the newly updated rate is then pushed to the stCSPR contract

For example, if the current rate is 1 CSPR, the total supply of stCSPR is 100, and there is newly generated rewards of 1 CSPR, the updated rate will be: 1.009 CSPR

Users receive stCSPR immediately after making a stake deploy successfully. The amount of stCSPR a user can receive depends on the amount of CSPR being staked and the rate. And it can be calculated as follows:

Amount of stCSPR = Amount of Staking CSPR / Current Rate

There is a minimum of 500 CSPR applied when users stake on our app. This minimum is similar to the standard delegation of the Casper blockchain.