This article is published on behalf of WaxFusion
WaxFusion is a new liquid staking protocol that just launched on the WAX Blockchain. With multiple reward streams and our innovative Protocol Owned Liquidity (POL) Flywheel mechanism, we present a lucrative opportunity for WAX holders to engage in DeFi.
How It Works
Normally when you hold WAX in your wallet, you have 2 options:
- Stake the WAX and vote for block producers so you can earn voting rewards
- Keep the WAX unstaked so you can use it as capital for DeFi opportunities
With WaxFusion, you can do both at the same time. When you stake your WAX into WaxFusion, you will be issued a liquid staking token called LSWAX. This LSWAX is fully backed by the WAX that you deposited, and can always be redeemed for the full amount of your deposit.
Furthermore, our open source smart contracts stake the WAX that you deposited — earning you voting/staking rewards while you still have access to your liquid capital (LSWAX).
Protocol Owned Liquidity
A portion of all rewards earned by the protocol are used for compounding treasury funds, which can never be withdrawn from the smart contracts. These protocol owned funds are used for staking WAX (generating rewards), providing liquidity to the LSWAX/WAX pair (generating fees and farming rewards), and CPU rentals (generating rental fees).
All of these rewards generated by POL are majority-shared with LSWAX holders. Which means that when you deposit WAX into WaxFusion, you aren’t just earning from your own WAX deposit — you are earning from the protocol’s WAX as well.
As TVL grows higher for WaxFusion, these protocol owned funds compound faster — increasing their earning power and increasing the amount of rewards that we can generate for LSWAX holders. Over time, this means that the protocol becomes more and more attractive since its ability to generate rewards for LSWAX holders is constantly increasing.
CPU Rental
One benefit to staking normal WAX tokens is that you get CPU for transactions. To solve this issue, WaxFusion offers CPU rentals at the lowest cost on the market. Any rewards generated by these CPU rentals are shared with LSWAX holders, so it’s a win-win for all parties involved.
Ecosystem Fund
A portion of all rewards generated by the protocol is also used for creating LP farms on Alcor Exchange. Users who provide liquidity for certain token pairs (LSWAX/WAX for example) will be earning in multiple ways:
- Autocompounding rewards from holding LSWAX in the liquidity pool
- Trading fees from the liquidity pair
- Farming rewards from the incentives that are created with a percentage of rewards earned by WaxFusion
You can learn more about our ecosystem fund in our documentation.
Security First
All of our smart contracts are fully open source, audited by the WAX team, and under a multisig permission structure that includes the official WAX team, OIG, and multiple top 21 block producers.
This means that we can not touch your funds even if we wanted to, as all contract updates would need to be approved by at least 4 of these trusted parties. So you can rest assured that your funds are safe when you interact with our smart contracts.
Get Involved
If you would like to get involved or learn more about WaxFusion, head over to waxfusion.io now. All of our socials are linked on the website, as well as our documentation.
Join WaxFusion
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