❓FAQ
This FAQ is for informational purposes only and does not constitute financial, legal, or investment advice. The stake.link protocol is provided 'as is,' and users are solely responsible for their own actions and due diligence. The crypto space involves risks; PLEASE DYOR.
Table of Contents
I. Protocol Fundamentals
1.What is Chainlink Staking?
Chainlink Staking is a key component of Chainlink Economics designed to enhance the cryptoeconomic security of the Chainlink Network. It allows ecosystem participants, such as community members and node operators, to commit their LINK tokens to back the performance of oracle services. In return for helping to secure the network, stakers earn rewards. The current version is v0.2. stake.link (SDL) serves as a key platform within this ecosystem, offering a liquid and enhanced way for users to participate in securing the Chainlink Network.
2.What are the advantages of staking with stake.link versus native Chainlink Staking?
Staking through stake.link offers several key advantages over staking natively on the Chainlink platform:
Access to Higher Yield: stake.link stakes assets in both the Chainlink Community Pool and the higher-yielding Node Operator Pool, offering users a blended reward rate that is typically higher than the Community Pool alone.
Liquid Staking Token (stLINK): When you stake LINK, you receive stLINK, a liquid token representing your staked position. This token can be transferred, traded, or used as collateral in other DeFi applications, whereas natively staked LINK is locked.
Auto-Compounding Yield: The rewards earned are automatically compounded. This is reflected through a rebasing mechanism where your stLINK balance increases over time. Native staking rewards do not auto-compound and must be manually claimed and restaked, which is often impossible as the pools are full.
Flexible Withdrawals: stake.link offers an accelerated withdrawal process. Users can often unstake their LINK in 1-7 days, and sometimes instantly if there is liquidity in the Priority Pool, bypassing the native 28-day cooldown period.
3.How does stake.link offer a higher reward rate?
The higher reward rate is achieved by pooling user deposits and staking them across both the Chainlink Community Pool and the exclusive Node Operators Pool. The Node Operator Pool receives delegation rewards from the Community Pool, resulting in a higher overall yield. stake.link is currently the only platform that provides the general public with access to the returns from this higher-yielding pool. The reward rate displayed on the website is the final rate after all protocol fees have been deducted.
4.What fees does stake.link take?
The stake.link protocol's fee structure is designed to sustainably reward key participants who secure and operate the network. The fees are sourced directly from the gross staking yield and can be categorized as follows:
Protocol & Delegation Fees: As key participants of the ecosystem, SDL stakers receive a share of the rewards generated from the protocol. Fruthermore, a portion of the overall yield is allocated to the 15 participating node operators as a "delegation fee" for providing their valuable staking capacity. A share also goes to the core contributors for the ongoing development and maintenance of the protocol.
DeFi-PoL (Protocol Owned Liquidity) Fee: There is a 3% delegation fee applied to the yield generated by the protocol's LSTs (like stLINK & stPOL). This fee is specifically used to bootstrap and incentivize liquidity providers in DeFi, such as the stLINK/LINK pool on Curve. This ensures the LSTs have deep liquidity, which is vital for their utility and stability.
Node Operators
5%
0%
SDL Stakers
15%
10%
DeFi: Protocol Owned Liquidity
3%
3%
Core Contributors (CC)
3%
3%
Total
26%
16%
It is important to note that the reward rate (APY) displayed on the stake.link website is the net yield for the user, meaning these fees have already been deducted.
5.What is a Liquid Staking Token (LST) like stLINK?
Liquid Staking Token (LST) is a type of receipt token that represents ownership of a staked asset in a protocol. stLINK is similiar to other popular LSTs like Lido's stETH. For stake.link, when the protocol stakes 1 LINK in the native Chainlink pools, the protocol mints 1 stLINK. This stLINK token accrues staking rewards while remaining liquid, meaning it can be freely traded or used in other DeFi protocols without needing to unstake the underlying LINK.
6.How does stLINK accrue yield?
stLINK accrues yield through a process called "rebasing." Approximately every two days, the total staking rewards earned by the protocol are calculated, and the supply of stLINK is increased proportionally. This means the stLINK balance in your wallet will automatically increase to reflect the rewards you've earned, effectively auto-compounding your stake.
Note: There will be no incoming transaction visible.
7.How can I acquire stLINK to get my LINK tokens staked?
There are two primary ways to acquire stLINK:
Stake on stake.link: You can deposit LINK into the Priority Pool on the stake.link platform. When staking capacity becomes available, your LINK is automatically staked and converted to stLINK.
Swap on a DEX: You can trade LINK for stLINK directly on a decentralized exchange that has a stLINK/LINK liquidity pool
8.Who are the node operators behind stake.link?
stake.link is comprised of 15 of the most reputable and long-standing node operators in the Chainlink ecosystem:
01NODE, Framework Ventures, LinkPool, Chainlayer, Galaxy Digital, Inotel, LinkedRiver, LinkForest, OrionStaking, Matrixed.Link, Simply Stakin', Pier Two, Stakin, Tiingo and stakefish.
LinkPool also serves as a core technical contributor to the protocol.
9.How does stake.link's delegated staking model benefit both node operators and community members?
Delegated staking is a model where community members can pool their capital to support high-performance node operators, solving a key challenge in the Chainlink ecosystem. At scale, individual node operators may not have the immense capital required to collateralize all the oracle services they can perform. stake.link's model bridges this gap by creating a symbiotic, win-win relationship:
Community Members provide the LINK capital that secures the network. In return, they gain access to the higher, exclusive reward rates of the node operator pools, earning a better yield than they could through native community staking alone.
Node Operators provide their limited staking capacity and perform the work that earns rewards. In return, they receive a "delegation fee" from the rewards generated by the community's capital. This allows them to scale their operations, secure more work, and increase the overall capacity of the Chainlink Network beyond the limits of their own funds.
This alignment of incentives ensures both parties are essential and fairly compensated, allowing the entire ecosystem to scale more effectively.
10.Is staking on stake.link non-custodial?
Yes. Staking on stake.link is entirely non-custodial. The protocol's smart contracts manage the staking and delegation process, but at no point do the node operators or core contributors take direct control or custody of a user's LINK tokens. You retain ownership of your assets through the stLINK token.
11.How do I withdraw my staked LINK(stLINK)?
You can redeem your stLINK for LINK through the stake.link platform. The protocol is designed for faster withdrawals than native staking. Thanks to a continuous cycle of unbonding and the Priority Pool acting as a liquidity buffer, withdrawals can often be processed within a 1 to 7-day window, and instantly if there is LINK in the Priority Pool, bypassing the mandatory 28-day cooldown period required for native Chainlink staking.
12.What is the Priority Pool?
The Priority Pool is a core feature of the stake.link protocol that functions as an intelligent queuing system for users wishing to stake LINK. The Priority Pool is a holding zone, and depositing there doesn't immediately translates to getting your LINK staked. Since the native Chainlink staking pools have a limited capacity and are often full, the Priority Pool provides a fair and automated way for users to stake their LINK as soon as space becomes available.
Its key functions and characteristics are:
Solves Limited Capacity: It allows users to deposit LINK and have it automatically staked for them when other users withdraw from native staking, creating a 'set-and-forget' experience.
Prioritization, Not "First-Come, First-Served": The queue is not based on who deposits first. Instead, it prioritizes deposits from users who have staked SDL and hold reSDL NFTs. The more reSDL a user has, the higher their priority. This was designed to be fairer than a "fastest finger" system that favors users in certain timezones.
Liquidity Buffer for Fast Withdrawals: The Priority Pool also serves as a liquidity source for users who want to unstake and exit stLINK back to LINK. When a user redeems their stLINK for LINK, the protocol can swap it with LINK from the Priority Pool.
Full User Control: Users can withdraw their LINK from the Priority Pool at any time before it has been converted to stLINK. However, it's important to note that LINK held in the Priority Pool does not earn staking rewards until it is officially staked and converted to stLINK.
13.What is the relationship between stake.link and Chainlink?
stake.link is an independent protocol that operates within the Chainlink ecosystem. While not an official product from Chainlink Labs, the protocol is deeply integrated with Chainlink's mission and technology in several key ways:
Built by Core Ecosystem Participants: stake.link was founded and is operated by a consortium of 15 top-tier Chainlink node operators. This means it's built by established participants who are deeply invested in the long-term success and security of the Chainlink Network.
Strategic Alignment with Chainlink Labs: Demonstrating a deep collaboration and shared vision, Chainlink Labs holds 7.7% of the total SDL supply as a key ecosystem partner. This aligns the core team behind Chainlink with the long-term success of the stake.link protocol.
Utilizes Chainlink's Staking Infrastructure: The protocol functions as a value-add layer on top of Chainlink's native staking system. It pools user funds and stakes them directly into Chainlink's official staking contracts, with all yield originating directly from the native Chainlink protocol.
Leverages the Full Chainlink Tech Stack: The integration goes beyond just staking. The stake.link protocol is built using Chainlink's own suite of services, including Price Feeds, Automation, and the Cross-Chain Interoperability Protocol (CCIP), to ensure its operations are secure, reliable, and decentralized.
Shares the Goal of Enhancing Network Security: By making staking more accessible and liquid (via stLINK), stake.link helps increase overall participation in Chainlink Staking. This directly supports the core mission of enhancing the cryptoeconomic security of the entire Chainlink Network.
14.What is the long-term vision for stake.link?
The long-term vision for stake.link is to build a robust, multi-chain ecosystem with Chainlink and stLINK serving as its permanent cornerstone. While our foundation is built on this security and strength using the Chainlink stack, our ambition is to evolve from the premier liquid staking solution for Chainlink into the first-of-its-kind on-chain Liquid Staking Token (LST) Index.
The strategy unfolds in key phases:
Establish the Foundation: We began by creating
stLINK, the leading LST for the Chainlink Network, ensuring it is secure, distributed, and highly liquid.Expand to a Multi-Chain Model: We are now accelerating our growth by adding new, high-quality LSTs for other promising networks, starting with
stPOLfor Polygon. This proves our multi-network model and creates diverse reward streams.Become the Premier LST Index: The ultimate goal is for our native token,
SDL, to capture value from a growing basket of LSTs. All fees generated fromstLINK,stPOL, and all future LSTs will be distributed toSDLstakers. This allows users to gain exposure to a diverse index of staking rewards, all consolidated within the singleSDLtoken.
Our roadmap to achieve this includes launching more LSTs, securing deep integrations with major DeFi platforms like Aave, and making SDL and our LSTs ubiquitous across the on-chain economy, all while building upon our core strength in the Chainlink ecosystem.
15.How is stLINK distributed to users from the Priority Pool?
stLINK distributed to users from the Priority Pool?When new staking capacity becomes available, the protocol processes deposits from the Priority Pool in batches to mint and distribute stLINK. Here’s how it works:
Batched Distribution: The protocol distributes
stLINKin batches of 15,000 LINK. Once at least 15,000 LINK worth of staking capacity is available, the distribution process can be initiated.Claiming Your
stLINK: After a batch is processed, your correspondingstLINKwill become available to claim on the stake.link platform. You'll need to visit the "Priority Staking" section of the site to claim your newly mintedstLINK.High-Volume Periods: If a large amount of staking capacity opens up (e.g., more than 15,000 LINK at once), the Priority Pool will process all the available LINK and distribute the
stLINKfor claiming approximately every 24 hours until the queue is cleared.
II. Tokenomics & Economics
1.What is the SDL token and what is its utility?
SDL is the native governance and utility token of the stake.link protocol. Its tokenomics are designed to reward long-term, committed participants. Staking SDL provides users with reSDL NFTs (Reward Escrowed SDL), which grants three primary benefits:
Protocol Rewards: Earn a share of the protocol's revenue from a growing basket of LSTs. As stake.link adds more liquid staking tokens like
stPOL, the fee streams distributed toSDLstakers diversify and grow.Priority Staking Access: Receive priority in the Priority Pool, allowing your LINK to be staked ahead of non-reSDL holders.
Governance: Participate in DAO governance, such as voting on proposals (SLURPs) and electing council members.
2.What is the total supply and distribution of SDL?
The total supply of SDL is fixed at 100,000,000 tokens, and no more can be minted. The initial distribution is as follows:
Community: 30%
Treasury: 40.91%
Core Contributors: 20%
Ecosystem Partners: 7.69%
Node Operators: 1.4%
3.What is reSDL?
reSDL (Reward Escrowed SDL) is the token you receive when you stake your SDL in the stake.link protocol. It represents your staked position and is the key to unlocking the primary benefits of the platform, including protocol rewards, priority staking access, and governance rights.
When you stake SDL to get reSDL, your position is minted as an NFT. This NFT acts as a container or "position" for your reSDL balance. You can have multiple reSDL NFTs in your wallet, each representing a different amount of staked SDL with potentially different lock settings.
4.How do I get reSDL NFTs?
You get reSDL NFTs by staking your SDL tokens on the stake.link platform. When you stake, a reSDL NFT representing your position is minted to your wallet which represents the underlying SDL you've staked.
5.Does staking SDL give me more SDL tokens?
No. Staking SDL does not generate more SDL tokens as inflationary rewards. Instead, it allows you to earn a portion of the protocol's revenue, which is paid out in its LSTs (like stLINK). The "boost" from locking SDL increases your reSDL balance, not your underlying SDL balance.
6.What is the reSDL locking mechanism?
You can optionally lock your staked SDL for a set period to receive a greater amount of reSDL, which boosts your share of protocol rewards and governance weight. This reward escrow model, inspired by Curve's and Velodrome ("ve") model, is designed to reward long-term commitment to the protocol. The longer you lock, the larger the boost you receive on your reSDL balance.
7.How does the reSDL lock boost work?
Locking your reSDL provides a multiplier on the amount of reSDL you receive relative to the SDL you staked.
No Lock: 1x multiplier
12-month lock: 3x multiplier
24-month lock: 5x multiplier
36-month lock: 7x multiplier
48-month lock: 9x multiplier
8.What are the lock and withdrawal periods for reSDL?
The reSDL locking system is designed to be straightforward and to reward long-term holders who remain staked. Here is the simple breakdown:
Maximum Boost Period: Your reSDL boost is set to the maximum level the moment you lock, based on the duration you chose. It remains at this maximum level indefinitely for as long as you do not take any action, even for years beyond your original lock commitment.
Initiating Withdrawal: You can choose to "Initiate Withdraw" at any point.
Unlock Period: The moment you click "Initiate Withdraw," two things happen: your boost is removed, and a final, fixed unlock timer begins. This timer is always equal to half of your original lock duration. Your yield that is decreased since the boost is removed will be forfeited to other SDL stakers.
9.How do I withdraw my staked SDL?
The process depends on whether your position is locked:
If your SDL is not locked: You can withdraw it at any time.
If your SDL is time locked: You must first initiate the withdrawal process. Once you "Initiate Withdraw," a final unlock period begins which lasts for half of your original lock duration. After this period is complete, you can burn your reSDL NFT to reclaim your underlying SDL tokens.
10.Does reSDL guarantee access to LINK staking?
Depositing LINK in the Priority Pool from a wallet that holds reSDL NFTs will guarantee a portion of your LINK to be converted to stLINK at every stake captured. LINK deposits backed by reSDL are staked before deposits that are not. The more reSDL you hold, the greater your share of the available staking capacity will be relative to other reSDL holders.
Essentially, reSDL ensures you are first in line and that you get a fair share of every new stake, but the exact amount of LINK converted to stLINK depends on the total available capacity and the total amount of reSDL held by all depositors in the pool.
11.Can I transfer my reSDL NFTs to a different wallet?
Yes. The reSDL NFTs are standard ERC-721 tokens and can be transferred between wallets at any time, even when locked. When you transfer an reSDL NFT, you also transfer ownership of the underlying staked SDL and any unclaimed rewards (like stLINK) associated with that position.
If you have transferred the reSDL NFT from a wallet that currently have LINK in the Priority Pool, you will lose said priority.
12.Can I sell my reSDL NFTs?
Yes. Because they are standard NFTs, you can sell your reSDL positions on any compatible NFT marketplace like OpenSea. This allows for the transfer of staked and even locked positions between users.
13.Can I merge or split my reSDL NFT positions?
No, you can't merge separate reSDL NFT positions into one or split a single position into multiple NFTs.
Each reSDL NFT represents a unique, individual staking position.
While you can't merge or split them, you can modify a position in the following ways:
Add More SDL: You can add more SDL to any of your existing NFT positions at any time. However, be aware that doing this will reset the lock timer if that position is locked.
Create New Positions: You can always create a new, distinct NFT position by staking more SDL.
This means you can have multiple NFT positions, each with its own amount of SDL and its own unique lock period.
14.How are ecosystem airdrops (e.g., Chainlink's BUILD program) distributed?
All BUILD airdrops received by the protocol are distributed amongst its key stakeholders to reward their contribution to the ecosystem. The recipients are:
stLINK holders (the liquid stakers)
reSDL holders (the protocol's governors and long-term supporters)
stLINK-LINK liquidity providers on Curve.
The distribution is calculated using a Time-Weighted Average (TWA) of a user's stake over a "season" to fairly reward sustained participation.
III. Technology & Security
1.Have the stake.link smart contracts been audited?
Security is a top priority for the stake.link protocol. All smart contracts undergo rigorous security audits from reputable third-party firms (CodeHawks, Cyfrin, Sigma Prime, Trust Security, Zellic) before deployment and after any significant upgrades. For the latest audit reports see our Github audits section.
2.What proactive security measures does stake.link use beyond smart contract audits?
To ensure the highest level of security, stake.link employs a multi-layered defense strategy that goes beyond traditional audits. The protocol actively collaborates with two industry-leading security partners, Hypernative and Immunefi, for continuous, real-time protection.
Real-Time Threat Monitoring with Hypernative: stake.link uses Hypernative's advanced CryptoSecOps platform for 24/7 monitoring of on-chain and off-chain activity. This service proactively detects and prevents a wide range of threats before they can impact the protocol, including economic exploits, governance attacks, oracle deviations, and phishing campaigns targeting the community. The system is integrated directly into our workflows to provide immediate alerts and automated responses.
Bug Bounty Program with Immunefi: stake.link hosts a public bug bounty program on Immunefi, the leading platform for Web3 security. This program incentivizes the world's largest community of whitehat security researchers to continuously review our live smart contracts and web applications for potential vulnerabilities. Researchers are offered significant rewards, up to $100,000 for critical findings, ensuring that potential exploits are discovered and responsibly disclosed before they can be leveraged by malicious actors.
Together, these partnerships provide a robust, around-the-clock security framework that complements our rigorous audits and protects the protocol and its users from an ever-evolving landscape of threat
3.How are the protocol's treasury and critical functions secured?
Critical protocol operations and the management of treasury funds are secured by a 6-of-8 multi-signature (multi-sig) wallet. This means that for any transaction to be executed, it must be approved by at least six of the eight designated signers. All on-chain actions executed by the multi-sig are also subject to a 24-hour timelock, providing an extra layer of security and allowing the community to review pending changes.
4.Who are the signers on the multi-sig wallet?
The multi-sig is managed by a diverse group of eight reputable and independent entities to ensure decentralization and robust security. The composition of the signers is designed to prevent collusion and includes:
Core protocol contributors
Long-standing top-tier Chainlink node operators
A representative elected from the SDL DAO
An independent, professional corporate services firm
This structure ensures that no single entity or group has unilateral control, and all critical actions require a broad consensus from key stakeholders across the ecosystem.
5.What are the general risks of using stake.link and other DeFi protocols?
While stake.link is built to high security standards, it operates in the decentralized finance (DeFi) space, which carries inherent risks. These can include smart contract vulnerabilities (bugs), market volatility affecting asset prices, and liquidation risks when using assets as collateral. Users should always do their own research (DYOR) and understand the mechanics of the protocol and other protocols built on top of us.
6.What happens if stLINK de-pegs on secondary markets?
A "de-peg" means the market price on a decentralized exchange such as Curve has temporarily deviated from its underlying redemption value. This is typically a self-correcting issue driven by arbitrage. If the price drops, arbitrageurs buy the discounted token on the market and redeem it through the protocol for its full value, with their buying pressure pushing the price back up. While this market activity is normal, a sustained de-peg could signal a more serious issue, and users who use wstLINK as collateral should be aware of liquidation risks from sharp price drops.
7.What is wstLINK and how is it different from stLINK?
wstLINK (Wrapped stLINK) is a non-rebasing version of stLINK designed for maximum compatibility with DeFi protocols. While your stLINK balance increases over time, the value of wstLINK itself increases. This makes it easier to use as collateral in lending markets or in other complex smart contracts that can't handle rebasing tokens. You can wrap your stLINK into wstLINK and unwrap it at any time.
IV. Ecosystem & Governance
1.What is the governance model of stake.link?
Since its founding, stake.link has transitioned to a decentralized governance model controlled by a DAO (Decentralized Autonomous Organization). This means that stakers of the native token, SDL, can participate in shaping the protocol's future through a representative governance structure. his includes voting on key decisions such as the integration of new LSTs into the index, treasury management, and the overall strategic direction of the protocol.
2.How can the community propose changes to the protocol?
Anyone can propose changes and upgrades through a SLURP (stake.link Upgrade Request Proposal). The process is as follows:
A proposal is written and submitted on the official forums.
A minimum timeframe of one week is typically given for community discussion or more if no consensus is initially reached and discussions are ongoing.
If there is no apparent consensus, a SLURP could be put up to a Snapshot vote where reSDL holders vote to decide. If approved, it goes to the final council vote.
Once general consensus is reached, the SLURP is posted for an on-chain vote via Snapshot for the Governance Council to ratify.
3.What is the Governance Council and what is its role?
The Governance Council is the elected representative body that oversees the protocol and is responsible for ratifying proposals on behalf of the DAO. It is comprised of seven members:
2 Core Contributors
1 NAIL (Network Aligned Individual Liaison)
2 Community Members
2 SDL Node Operators
4.How are community members elected to the Council?
The two community seats on the council are elected directly by the community. Any reSDL holder can vote for the candidates of their choice. Elections are held on a 6-month cycle, which is defined as an "epoch."
5.What is the NAIL (Network Aligned Individual Liaison) role?
The NAIL is an initiative to hire individuals as full or part-time contributors to the stake.link DAO. These individuals are compensated from the DAO treasury to dedicate their time to operational, strategic, and community-focused tasks that drive the protocol's growth and sustainability. Anyone can propose themselves as a NAIL representative via SLURPs.
6.What is "stakedotlink" and why does the DAO need a legal entity?
stakedotlink is the official legal entity that represents the stake.link DAO, allowing it to operate in the traditional world. After careful consideration with legal counsel, a company limited by guarantee in the British Virgin Islands (BVI) was chosen as the most suitable structure.
This specific legal framework is essential for three key reasons:
Liability Protection: The BVI corporate structure provides a robust "corporate veil," which aims to protect individual token holders and DAO participants from being held personally liable for the DAO's collective actions.
Real-World Capabilities: It enables the DAO to perform necessary off-chain actions that require a legal person, such as signing contracts, paying for services, and interacting with other companies.
Flexibility and Neutrality: The BVI was specifically selected for its flexible corporate laws, tax-neutral environment, and familiarity within the digital asset industry, providing a stable and efficient foundation for the DAO's off-chain operations.
7.How does the community exercise its rights over the "stakedotlink" legal entity?
The legal framework was designed with community rights hardwired into its constitution. The Governance Council, which includes two community-elected members, has the power to direct the company's actions, including nominating or removing its director. Furthermore, in a novel design feature, any tokenholder has the right to be admitted as a "guarantee member" of the company, giving them direct legal standing to enforce its governance documents.
8.What is the role of the founding team (LinkPool) now that stake.link is a DAO?
LinkPool was instrumental in bootstrapping the protocol, handling the initial technical development and funding. While stake.link has now transitioned to a DAO-controlled structure, LinkPool remains a core technical contributor, helping with ongoing development. They hold seats on the governance council, but operate within the decentralized framework where the community, through Council, reSDL votes and SLURPs, holds the ultimate power to guide the protocol's direction.
9.What is the purpose of the DAO Treasury?
The DAO Treasury funds strategic initiatives to grow the protocol. This can include funding development, security audits, ecosystem grants, liquidity incentives, or other programs approved by the Governance Council to ensure the long-term health and success of stake.link.
V. Polygon Liquid Staking - stPOL
1.What is stPOL?
stPOL is stake.link's liquid staking token for Polygon's POL token. It allows users to stake their POL to help secure the Polygon network while receiving a liquid token (stPOL) that continues to accrue rewards and can be used in DeFi.
2.What are the benefits of using stPOL over native Polygon staking?
Staking through stPOL offers several advantages:
Liquidity: Unlike natively staked POL which is locked,
stPOLis a liquid asset that can be transferred or used in DeFi protocols.Competitive Rewards:
stPOLprovides a competitive yield by distributing MEV (Maximal Extractable Value) rewards back to stakers, in addition to standard staking rewards.DeFi Composability: Users receive a wrapped, DeFi-compatible version (
wstPOL) for use on the Polygon PoS chain.
3.How does stPOL accrue yield?
Similar to stLINK, stPOL accrues yield through a rebasing mechanism. The staking rewards, including MEV, are calculated and distributed regularly by increasing the amount of stPOL in your wallet, effectively auto-compounding your position.
4.How do I stake POL and use it in DeFi?
The process is designed to give you a liquid token on Ethereum (stPOL) and a DeFi-compatible version for the Polygon network (wstPOL). Here are the steps:
Stake: Deposit your POL tokens on the Ethereum mainnet via the stake.link platform.
Receive stPOL: You will receive
stPOL, the rebasing liquid staking token, in your Ethereum wallet.Wrap to wstPOL: On the stake.link website, wrap your
stPOLto getwstPOL, the non-rebasing, DeFi-friendly version.Bridge: Bridge your
wstPOLfrom the Ethereum mainnet to the Polygon PoS chain.Participate in DeFi: Use your
wstPOLin DeFi protocols, such as providing liquidity to thewstPOL/WPOLpool on Curve.
5.How is the DeFi liquidity for stPOL incentivized?
To ensure deep liquidity, the protocol applies a 3% DeFi-PoL (Protocol Owned Liquidity) fee from the stPOL rewards. This fee is used to incentivize liquidity providers (LPs) for pools like the wstPOL/WPOL pool on Curve, making it easier for users to trade the token at a fair market price and enable potential liquidations in lending and borrowing markets.
6.How do I withdraw my stPOL back to POL?
You can withdraw your stPOL back to POL on the Ethereum mainnet by initiating a withdrawal request on the stake.link website. The unbonding period is typically 3-4 days, which allows for the sync state between the Polygon and Ethereum chains to be confirmed securely. You can also swap wstPOL to WPOL on Curve if you are on the Polygon PoS chain.
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