Question 1

Why is 1 sMON not 1 MON?

Accepted Answer

sMON is a share of one big pool of staked MON. The staked MON earns rewards over time, so the pool keeps growing. That means each sMON is worth a little more MON as time passes. Holding sMON gives you your original stake plus your share of the rewards. The ratio never resets to 1:1, so sMON keeps growing in value against MON.

Question 2

What are Liquid Staked Tokens (LSTs)?

Accepted Answer

Liquid Staked Tokens (LSTs) stand for staked assets you own. Here, that asset is MON. LSTs let you earn staking rewards while your tokens stay free to use. You can use them across DeFi instead of leaving them locked up.

Question 3

How does sMON earn yield?

Accepted Answer

sMON is a share of the protocol's pool of staked MON. When that MON is staked with validators on Monad, the rewards go back into the pool. As the pool grows, each sMON is worth more. You can also use sMON in DeFi to earn extra yield on top of staking rewards.

Question 4

How does unstaking work?

Accepted Answer

Unstaking sMON queues a withdrawal request for the underlying MON. Once the unlock period completes, the MON becomes claimable back to your wallet. You can view and manage pending requests from the Stake page.

Question 5

What are the potential risks?

Accepted Answer

Staking and LSTs have benefits, but also risks. Common ones are price swings in staked assets and LSTs, general blockchain security risk, and smart contract risk. LSTs rely on smart contracts, and bugs in them can lead to losses. Audits help reduce these risks.

Question 6

Is Kintsu's code audited?

Accepted Answer

Yes. Keeping user funds and the protocol safe is our top priority. Kintsu uses pre-audited code from libraries like OpenZeppelin.

Liquid Staking

Liquid Staking