stFlow token

What is $stFlow?

$stFlow is a fungible token on Flow blockchain that represents a share of the total $flow tokens staked through liquid staking protocol, along with any generated staking rewards.

User will receive $stFlow tokens after staking $flow tokens in LSP (liquid staking protocol). As a kind of staking receipt, user can exchange $flow tokens and the earned rewards back through burning $stFlow.

The minting of $stFlow only happens when new staking occurs in LSP.

How is $stFlow quoted?

The latest $stFlow/$Flow price can be queried by protocol interface:

// 9.9913 &stFlow -> 10.0000 $flow
LiquidStaking.calcStFlowFromFlow(flowAmount: UFix64)

// 10.0000 $flow -> 9.9913 &stFlow
LiquidStaking.calcFlowFromStFlow(stFlowAmount: UFix64)

At the beginning of each new epoch, $stFlow price will be recalculated and this quote will not change during the whole epoch period.

The quotation of $stFlow is:

$stFlow Price = \frac{[$flow's TotalStaked] + [EarnedRewards]}{[$stFlow's TotalSupply]}

It is not difficult to find that the price of $stFlow will continue to increase as new staking rewards accrued. At the epoch of creation, the price of 1 $stFlow is equal to 1 $flow.

Assume that the Apr of staking is 8%, and the reward is issued according to the $flow total staked:

EarnedRewards = \frac{$flow's TotalSupply * 0.08}{52}

The price change of $stFlow over one year can be plotted:​