LYX for sLYX: An instant alternative to staking

By opting to swap LYX for sLYX in the LEEQUID platform, a user can bypass any queues in the staking pool. 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%)

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