Answers to frequently asked questions about Liquid Finance.

What is Liquid Staking?

  • Liquid staking is a concept that allows individuals to stake their tokens while still maintaining access to their liquidity. This is achieved through the creation of liquid staking tokens, which serve as on-chain representations of the staked assets and act as a claim on the underlying staking positions

How do I receive my ARCH staking rewards?

  • Your staking rewards accrue within the Liquid Finance stake pool and are reflected in the ARCH/sARCH exchange rate on the protocol. When staking rewards are claimed and the staked again within the smart contract, the exchange rate for ARCH -> sARCH increases. This means that when a user wants to redeem their sARCH -> ARCH they will be able to claim more ARCH than they originally deposited

What is the Instant Unstaking Queue?

  • The Instant Unstaking Queue is essentially a one-sided liquidity pool within the Liquid Finance protocol that provides liquidity for sARCH holders who would like to redeem their sARCH instantaneously without waiting for the typical unbonding period

  • The Instant Unstaking Queue works on a First-In-First-Out basis where the first user to provide liquidity into the queue is the first person to have their ARCH tokens swapped for sARCH

  • For more information on the Instant Unstaking Queue, please see "Providing Liquidity"

How is the Projected Staking APY calculated?

  • The projected APY for staking your ARCH tokens within the Liquid Finance protocol is based on the previous 1 hour and is calculated by:

    • Projected Staking APY

      • daily_increased_staking_rate = (staking_rate[lastest_record] - staking_rate[lastest_record - 1 hour]) * 24

      • staking_APY = [(1 + daily_increased_staking_rate)^365] - 1

How often are staking rewards compounded?

  • Staking rewards generated by the Liquid Finance protocol are claimed and then re-staked within the protocol on a daily basis

How are protocol incentives generated?

  • Liquid Finance generates incentives from its Stake Pool and from the Archway Value Capture engine. 10% of all the staking rewards generated within the protocol are taken as a commission with the majority redistributed by to liquidity providers of the Instant Unstaking Queue. Liquid Finance smart contracts also generate rewards from usage via Archway Inflation and Gas Rebates, all of which are currently distributed back into the protocol as well

  • For more information on Liquid Finance fees + incentives, please see "Fees + Incentives"

How is the Projected LP APY calculated?

  • The projected APY for providing liquidity in the Instant Unstaking Queue is based on the previous 24 hours and is calculated by:

    • Projected LP APY

      • LP_rate is used to calculate ARCH rewards for LPers:

        • LP_rate = (total_ARCH_liquidity + total_ARCH_rewards) / (total_LP_token_supply)

      • daily_increased_LP_rate = LP_rate[lastest_record] - LP_rate[lastest_record - 24 hours]

      • LP_APY = daily_increased_LP_rate * 365

How often are LP rewards distributed?

  • A liquidity provider within the Instant Unstaking Pool will see their rewards increase in real-time on a block-by-block basis based on the amount of unclaimed ARCH tokens in the Stake Pool.

  • LPs are able to claim their rewards at any time as long as they have a non-zero amount of ARCH earned

How is the exchange rate calculated?

  • ARCH-sARCH exchange rate:

    • daily_increased_staking_rate = (staking_rate[lastest_record] - staking_rate[lastest_record - 1 hour]) * 24

    • staking_APY = [(1 + daily_increased_staking_rate)^365] - 1

Why is the maximum unstaking period ~25 days?

  • Cosmos SDK chains (Archway included) typically don't allow for one account to have more than 7 unique unstaking requests at any given time resulting in Liquid Finance processing unstaking requests every 4 days. Typically it will take between 21 to 25 days to complete your ARCH unstaking before it's ready to claim, however based on the Liquid Finance architecture there is a chance this time could be significantly reduced as new ARCH deposits and claimed ARCH staking rewards are first paired with delayed unstaking requests before being staked within the protocol.

What's the current set of validators that receive delegation from staked ARCH in Liquid Finance?

  • Currently ARCH deposited into Liquid Finance is staked + delegated across 5 validators: Lydia Labs, DSRV, Cosmostation, P2P and B-Harvest

Does sARCH qualify for governance voting on Archway Network proposals?

  • No, currently holders of sARCH are not qualified to vote on Archway Network governance proposals. Voting power is delegated to the Validator set above

How do I add my sARCH token to Keplr?

  1. Click on the three bars in the top left of the browser extension

  2. Select "Add Token"

  3. Ensure that the Archway mainnet network is selected

  4. Click "Add Token"

  5. In the "Contract Address" field, insert: archway1t2llqsvwwunf98v692nqd5juudcmmlu3zk55utx7xtfvznel030saclvq6

  6. Click "Confirm"

Where can I utilize sARCH?

Solely by holding sARCH you are already generating staking rewards while having increased liquidity on your staked position, however in addition to holding the sARCH token you are able to utilize it across a wide variety of apps within Archway and the broader Cosmos to take full advantage of your liquid staking tokens. Here are a couple places you can utilize sARCH:

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