Staking and Unstaking with Kintsu
How to Stake, Un-stake, and earn yield with Kintsu
Staking with Kintsu
When a user stakes tokens with the Kintsu protocol, the experience is as follows:
User initiates a
staketransaction, in which they submit MON tokens to the Kintsu staking pool (a.k.a. the Vault).User receives sMON receipt tokens. The amount received depends on the current Redemption Ratio, which can be seen on the Kintsu website beforehand.
sMON tokens are fungible, and can be traded on DEXes or used as a proxy for MON in other activities on the blockchain, such as DeFi applications, Gaming, NFTs, and more.
For more technical information on how staking works behind the scenes, see Kintsu's docs on the Staking Mechanism.
Unstaking with Kintsu
Users can exchange their sMON tokens for MON tokens from the protocol. The number of Gas Tokens received depends on the Redemption Ratio at that time, with respect to the number of sMON they submit for redemption.
It's important to note that when using Liquid Staking, there will be a delay between the time that a user requests to unstake MON and when they actually receive the MON. There are a few reasons for this, including native unstaking delays built into, and enforced by, the blockchain itself. The user experience is as follows:
Initiation: User executes an unstaking request, specifying either how many sMON they'd like to submit, or how many MON they'd like to receive.
Cooldown Period: Once the unbonding request is sent to the Validators, the users must wait for the Cooldown Period. This is enforced by the blockchain itself, and there is no way around it.
Redemption: Once the Cooldown Period is over, the user can redeem their MON tokens to their wallet.
For more detailed technical information on how this process works, see Kintsu's docs on the Unstaking Mechanism.
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