Guaranteed Parity

$mooSUI token is interchangeable with $SUI token at par

Most matured LSD platforms issue a derived token in two formats where:

1. Staking rewards are accrued into the value of the token

2. Staking rewards are airdropped to the token holders (i.e rebase tokens)

Rebase tokens should not be used in stable AMM pools because of their constantly changing supply. If the supply of one token in the pool is constantly changing due to rebasing, the price of that token would be constantly changing as well, defeating the purpose of a stable pool. Moreover, the way rebasing works makes it difficult to determine how much of a particular rebase token is actually held by liquidity providers. This would make it challenging to accurately calculate the trading fees owed to LPs and distribute them proportionally.

The same theory applies to tokens that accrue rewards, where the token price keeps increasing causing a perpetual impermanent loss if applied in AMM pools. These characteristics of current LSD solutions make it undesirable and reflect a high degree of difficulty for DeFI implementation.

To address this issue, our platform incorporated an architecture, where the staked asset, $mooSUI, has a guaranteed 1:1 peg to $SUI. The underlying $SUI in our vault will always match the $mooSUI in circulation. Holding $mooSUI does not accumulate any staking rewards.