Liquid Staking

Stake MON

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Receive sMON

1 sMON

= 1.0000 MONWhy?

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Liquid Staking

sMON represents a share of the total pool of staked MON. The staked MON earns yield over time in the form of more MON, so the amount of MON in the pool grows relative to the amount of sMON outstanding. As this happens, the value of 1 sMON represents more MON in the pool. This means that holding sMON gives users access to both their initial staked MON and their share of the new MON earned as yield. This ratio never resets to 1:1, so the value of sMON relative to MON will continue to grow over time.

Liquid Staked Tokens (LSTs) represent ownership of staked assets, typically cryptocurrencies like Monad (MON). LSTs let users earn staking rewards while keeping their tokens liquid—meaning they can still use these tokens across the decentralized finance (DeFi) ecosystem.

sMON earns yield because it represents a share of the protocol's pool of staked MON. When MON is staked with validators on the Monad blockchain, the staking rewards earned are added back to this pool. As the pool grows relative to the total supply of sMON, the value of each sMON increases. Additionally, sMON can be used in DeFi to earn extra yield beyond the staking rewards.