Recently, Sui's old meme currency FUD announced the launch of its liquid staking token fudSUI. The name of this token has also caused discussion. But perhaps what deserves more attention is that the meme coin itself, which is defined as nothing, has also begun to do serious things. FUD fired the first shot, but it is not sure whether it will cause a trend. Perhaps we will also see meme liquidity staking tokens such as dogeETH and bomeSOL in the future.
SpringSui is positioned as a new standard for liquid staking tokens
Solend, the DeFi protocol on Solana, and the team established the DeFi protocol Suilend on Sui. In addition to lending, cross-chain, trading and other functions, they also launched the liquid pledge token SpringSui (sSui). The liquidity staking token standard may be a more comprehensive description of SpringSui. In the technical documentation, it is mentioned that this token standard has technical differences with competing products.
The logic behind liquidity staking is very easy to understand. It basically means entrusting the tokens to the agreement party and staking them on the main network. PoS public chains such as Ethereum and Sui basically play this way. In addition to the token rewards of the main network itself, their income sources also include tokens given by the agreement parties (as for whether they are worthless air tokens, it depends on Token empowerment of the protocol parties).
FUD is a meme coin that existed long before the recent meme craze spread to Sui. Recently they announced the launch of the liquid staking token fudSUI, which the announcement said was the first meme liquid staking token. You can now stake Sui to obtain fudSUI on Suilend's SpringSui page, but in fact fudSUI only uses SpringSui's token standard rather than developing its own protocol.
Is immediate unstaking the best solution for token decoupling?
The biggest fear of liquid pledged tokens is to be decoupled from the value of the pledged tokens. SpringSui’s solution is to activate liquidity through immediate unstaking, called SIP-33. But can other liquidity staking protocols not be able to cancel the pledge instantly? In fact, this is not a new concept, LST (such as mSOL) on Solana already has similar functions.
However, Spring Sui claims that the token standard can meet the liquidity problem, which means that no matter how much sSUI is in circulation, users can immediately convert their tokens back to the underlying Sui.
SpringSui is designed to immediately release pledges, making it different from competing products.
To compare with its competitors, refer to the liquidity staking mechanisms of Haedal and Aftermath. There are two ways to unstake Haedal. One is to exchange haSui tokens for Sui within the protocol. There may be handling fees and slippage issues. The other is a general unstaking process, but it requires work time, but generally depends on the mainnet Epoch time (usually once every 24 hours).
Aftermath's mechanics are slightly different on paper, but are still largely the same as Haedal's. afSui holders can choose to unstake immediately or wait for the end of Epoch. However, the official will also provide the best transaction path found through the aggregator (after all, the aggregator is Aftermath's hometown). In vernacular, it can also be directly Redeem Sui from afSui.
If afSui holders want to unstake immediately, they will have to pay a handling fee of 0.91%. For comparison, waiting for the epoch to end before unstaking only charges 0.21%. The biggest difference between SpringSui and the above-mentioned competing products is that the pledge is immediately released by default, which is a greater test for the liquidity of the protocol.
The ceiling of Meme, fudSUI is an art of satire?
But breaking down the logic behind fudSUI, although it claims to be the first meme liquidity staking token, it basically just uses SpringSui’s token standard, and uses FUD tokens as additional annual rewards. The token name fudSUI may be a bit unlucky (or naughty) to believers, but think about it from another perspective, is the meme coin, which is essentially nothing, used as an annual reward, a mockery of the industry's use of worthless air coins to boost prices? Annualized reward behavior.
This article Meme is more than just a Meme! Sui’s veteran meme currency FUD launches liquid staking token fudSUI first appeared on Chain News ABMedia.
