LEEQUID
  • 👋 Welcome
  • Navigating LEEQUID
    • 🌱 Staking
      • The staking protocol
      • Matching stake to unstake requests
      • Potential wait times while staking
      • Deposited LYX lifecycle
      • Importing sLYX to your wallet
    • 🍇 Collecting rewards
      • Reward distribution in the LEEQUID protocol
      • Auto-compounding
      • Withdrawing rewards
      • Reward calculation in Proof of Stake
    • 🍂 Exiting the protocol
      • Option 1: swapping sLYX for LYX
      • Option 2: unstaking through the staking pool
      • Matching unstake to stake requests
      • Potential wait times while unstaking
    • 🍷 Claiming
      • Claim queued stake
      • Claim unstaked LYX
      • Claim rewards
    • 🔄 Swapping
      • LYX for sLYX: An instant alternative to staking
      • sLYX for LYX: an instant alternative to exiting
      • Providing liquidty
      • Providing Liquidity: a practical example
  • LEEQUID in depth
    • 🔐 Protocol security and risks
      • Security overview
      • Smart contract code correctness
      • Slashing and unexpected validator behaviour
      • sLYX token: economic balance
      • Validator key management
    • 📃 Smart contracts
      • Oracles
      • Merkle Distributor
      • Rewards
      • Pool
      • StakedLyxToken
      • FeesEscrow
    • 💧 The sLYX token
      • Acquiring sLYX
      • 1:1 ratio with LYX
      • Potential unpeg of sLYX from LYX
    • 💦 The liquidity pool (DEX)
      • Implementation
  • Incident Response
    • Contacts
    • Vulnerability Disclosure Policy
Powered by GitBook
On this page
  1. Navigating LEEQUID
  2. 🔄 Swapping

LYX for sLYX: An instant alternative to staking

Last updated 1 year ago

By opting to swap LYX for sLYX in the LEEQUID platform, a user can bypass any . The end result is the same as staking: the sLYX tokens end up in the user wallet, which will accrue staking rewards. It’s just that the user is buying staked LYX from someone who has already staked and is looking to unstake. Or, in the case of the LEEQUID liquidity pool, from liquidity providers who are willing to take any side of the trade in exchange for a small fee. This is an instant way of swapping, automated by smart contracts called Automated Market Makers (abbreviated AMMs).

Swapping through the liquidity pool happens in a matter of seconds, but it incurs a fee of 0.3% (proportionally distributed between liquidity providers).

When a user decides to swap, the sLYX to LYX ratio will be close to, but not exactly 1 to 1. Either the swap will occur at a slight profit or a slight loss. The total amount of sLYX obtained from the swap will depend on:

  • the amount of LYX being swapped in the transaction

  • the current ratio of the pool

  • the amount of liquidity in the pool

  • the swap fee (0.3%)

queues in the staking pool