About stEVER
Liquid staking is a new method of income accrual for EVER token holders. With it, you no longer have to lock tokens for a specific period of time in order to receive rewards. By participating in liquid staking, you can do both at once by staking EVER and receiving stEVER (staked EVER) tokens in return.
Let’s see how it works
stEVER is a TIP 3.1 token with the same characteristics as other tokens launched on Everscale. They are issued and deposited on your wallet balance the moment you stake your EVER in the system. The number of stEVER received in return is determined by the current exchange rate (see how it is calculated below). In turn, the amount of EVER you will receive by when you unstake changes in line with the accruals of EVER awards. The validators of stEVER work in the same way as other Everscale validators, except that their depools only receive stakes from the balancer.
Let's learn about depools
A depool is a smart contract that can combine stakes from different users into investment pools. Since the amount of a stake could be too big for an ordinary user, and the number of validators is limited, depool smart contracts come to the rescue. They allow any participant with a small number of EVERs to participate in validation and receive a share of the reward. With the help of a depool smart contract, users invest their EVERs in a common pool, for which they receive a reward depending on the amount deposited.
Essentially, depools allow users to receive remuneration without having to be a validator.
The Balancer mechanism
When users stake with depools, they try to get the most out of a pool’s APR. However, the APR changes depending on the amount of liquidity and the number of users staking. The rates fluctuate daily, and depending on how long you lock your tokens in for, you could end up getting much less back than you initially imagined.
The launch of stEVER tokens drastically reduces this risk with the help of a balancer mechanism. It is designed to keep the APR as high as possible. Currently, it is close to the basic profitability of the network. To do so, the balancer manages the stakes distribution between depool contracts. It ensures that the rounds are not overloaded and that pools work at peak efficiency.
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