stTON is the core of the bemo liquid staking protocol
To truly comprehend the inner workings of the platform, it is essential to understand the concept of the liquid staking token.
Please read the thread that explains how $stTON operates.
In the bemo ecosystem, $stTON is the liquid staking token you receive when you stake $TON tokens.
This token represents your stake position within the platform's stake pool. bemo delegates these tokens to validators for @ton_blockchain maintenance and rewards.
As a value-accruing token, stTON's price increases while the total number of tokens remains constant.
The stTON/TON price is determined by the smart contract after each validation round, considering deposited TONs deposited, rewards, and fees divided by the minted stTONs.
The exchange rate of stTON/TON updates is based on the staking rewards earned by TON tokens staked on the bemo platform.
As these rewards are distributed, the price of stTON rises, reflecting the increased value of the underlying TONs.
For instance, suppose the current stTON price is 1.2 TON, and the staking rate is 10% per year.
When you stake 1.2 TON with bemo, you receive 1 stTON.
After a year, the price of 1 stTON will be 1.32 TON (10% higher), allowing you to exchange 1 stTON for 1.32 TON.
Every stTON holder can unstake their tokens at any time, after a cooldown period of 36-72 hours. By doing so, they can retrieve their TONs along with the accrued rewards.
Since stTON is fully backed by the bemo stake pool, there is no risk of a fundamental depeg within the app.