> For the complete documentation index, see [llms.txt](https://docs.liquidfinance.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.liquidfinance.xyz/protocol-features/sarch.md). # sARCH A user can deposit ARCH tokens into the Liquid Finance protocol to receive sARCH tokens in return. sARCH tokens are a representation of balances staked within the protocol. sARCH is a fungible, reward-bearing token which means that by simply holding sARCH tokens you'll earn interest. This interest earned isn't distributed directly to the holder but rather is represented through the sARCH exchange rate. The exchange rate increases in value over time relative to the underlying asset because it represents a share of the total amount of staked ARCH within the protocol. This total amount will continue to increase when staking rewards are claimed and staked again, which means users will be able to redeem more assets over time as interest is earned. Each sARCH token becomes convertible into an increasing amount of ARCH, even while the number of sARCH tokens in your wallet stays the same. Holders of sARCH benefit in multiple ways, but mainly: * Earning interest through the sARCH exchange rate which increase in value relative to ARCH over time * Gives to ability to use sARCH as collateral throughout the Archway ecosystem and broader Cosmos --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.liquidfinance.xyz/protocol-features/sarch.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.