stSUI

What is stSUI? What is an LST? How does it work?

stSUI (Staked SUI) is AlphaFi’s instantly unstakable liquid staking token (LST) and the first implementation of the AlphaFi’s stSUI LST Standard. It allows users to stake their SUI while maintaining liquidity, enabling them to freely transfer, trade, or use stSUI in DeFi protocols without losing access to staking rewards.

LST stands for Liquid Staking Token. It represents staked assets while providing liquidity to users. When you stake SUI to validate Sui network transactions, you receive an LST in return, such as stSUI.

Unlike traditional staking, where your assets are locked and inaccessible, LSTs let you:

• Earn Staking Rewards: Continue earning rewards from the underlying staked asset.
• Maintain Liquidity: Freely trade, transfer, or use the token in DeFi protocols (e.g., lending, borrowing, or yield farming).
• Unstake Instantly: Redeem LSTs for the original staked asset without waiting for lengthy unstaking periods.

LSTs are revolutionizing staking by combining the benefits of staking with the flexibility of liquid assets.

When you stake SUI, you receive a liquid staking token, such as stSUI, representing your stake. Unlike traditional staking, stSUI enables instant redemption of tokens for SUI, eliminating risks of depegging during market volatility or liquidity shortages.

Through the stSUI Standard, stSUI maintains strong liquidity reducing depegging risks, making it a safer option compared to other LSTs.