Note: The original author is WaxFusion!
WaxFusion is a new liquidity staking protocol that has just been launched on the WAX blockchain. With multiple reward methods and an innovative "Protocol Owned Liquidity (POL)" flywheel mechanism, WaxFusion provides WAX holders with an opportunity to earn income by participating in DeFi.
How it works
Normally, when you hold WAX in your wallet, you have two options:
Stake WAX to vote for block producers and receive voting rewards
Don’t stake WAX, use it to participate in DeFi
With WaxFusion, you can do both. When you stake WAX to WaxFusion, you will receive a liquid staking token called LSWAX. This LSWAX is fully backed by WAX and can be redeemed at any time for the total amount of WAX previously staked.
Additionally, our open-source smart contracts will stake your WAX deposits - earning you voting/staking rewards while still giving you access to your liquid capital, LSWAX.
Protocol Own Liquidity
A portion of all rewards earned by the protocol goes to a Compound Finance Fund, which can never be withdrawn from the smart contract. These protocol-owned funds are used to stake WAX (generating rewards), provide liquidity for the LSWAX/WAX trading pair (generating fees and farming rewards), and lease CPU (generating rent).
All of these rewards generated from the protocol’s own liquidity will be mostly distributed among LSWAX holders. This means that when you deposit WAX into WaxFusion, not only do you earn on your own WAX deposits, you also earn on the protocol’s WAX.
As WaxFusion’s Total Value Locked (TVL) gets higher, the protocol’s own capital will compound faster, increasing its profitability and the amount of rewards we can bring to LSWAX holders. Over time, the protocol’s ability to bring rewards to LSWAX holders will continue to grow and become more attractive.
CPU Lease
One benefit of staking WAX in the normal way is that you can get the CPU you need to trade. To solve this problem, WaxFusion offers CPU leasing services at the lowest cost on the market. All rewards earned through these CPU leases will be shared with LSWAX holders, so it is a win-win for all parties involved.
Ecosystem Fund
A portion of all rewards generated by the protocol will also be used to create LP farms on the Alcor Exchange. Users who provide liquidity for a specific token pair (such as LSWAX/WAX) will earn in a variety of ways:
Automatically compounding rewards for holding LSWAX in liquidity pools
Transaction fees for liquid trading pairs
Take a percentage of the rewards earned on WaxFusion.
To learn more about our Ecosystem Fund, please visit: docs.waxfusion.io/revenue/distribution#ecosystem-fund
Safety first
All of our smart contracts are fully open source, audited by the WAX team, and controlled by a multi-signature permission structure that includes the official WAX team, the OIG, and multiple top 21 block producers.
This means that even if we wanted to, we couldn’t touch your funds, as all contract updates require approval from at least the 4 trusted parties mentioned above. Therefore, you can rest assured that your funds are safe when you interact with our smart contracts.
Get Involved
If you want to get involved or learn more about WaxFusion, visit waxfusion.io today where you’ll find everything you need to know.
Join WaxFusion!
Disclaimer
The content in this article is the responsibility of the author, WaxFusion, and has not been independently verified by WAX. WAX cannot verify the authenticity or accuracy of such content in any way and makes no representations and assumes no liability for the information in the article.
*Friendly reminder: This article is for popular science purposes only and does not constitute any investment advice!
