What is stTON?

stTON is a liquid staking token, representing staked TON on bemo, maintaining liquidity, and allowing holders to participate in DeFi applications while accruing staking rewards.

How Does stTON Work?

The bemo protocol, comprising a set of smart contracts on the TON blockchain, oversees TON deposits, the minting and burning stTON tokens, and validator transactions. It is also responsible for calculating and distributing staking fees and determining the stTON vs TON exchange rate.

Staking and Validator Rewards

• Users stake TON tokens and, in return, receive stTON tokens, symbolizing their share in the TON pool. The quantity of stTON allocated is determined by the amount of TON staked and the current stTON/TON rate.
• Validators receive TON tokens, deduct service fees, and increase the bemo TON pool's value, which in turn increases the value of stTON.

Unstaking

• Users can unstake stTON at any time, leading to a cooldown period lasting between 36 to 72 hours. After this period, stTON is converted back to TON based on the prevailing exchange rate, allowing users to claim their TON tokens.

Design and Functionality

stTON is a liquid token representing your share of the total TON pool deposited into bemo.

Value-Accruing Token

• Its design as a value-accruing token means that its price appreciates due to staking rewards while the quantity of tokens stays unchanged. Over time, your deposited TONs earn staking rewards, and the value of your stTON appreciates.

Price Determination

As TONs deposited in bemo earn staking rewards, the value of each stTON token increases correspondingly. The price of stTON relative to TON is determined by a smart contract after each validation round. This calculation involves adding the total TONs deposited and the staking rewards, subtracting any applicable fees, and then dividing by the total minted stTONs. This method ensures accurate valuation without the need for external oracles, as both the staked asset and rewards are in TONs.