# Minting/Retiring sWAX And lsWAX

| Action                     | Changes sWAX Supply | Changes lsWAX Supply | Description                                                                                                                                                                                                                                                        |
| -------------------------- | ------------------- | -------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
| claimaslswax               | Yes                 | Yes                  | Allows a user to claim their claimable WAX balance, and convert it into sWAX. The minted sWAX is then liquified, resulting in new lsWAX being created.                                                                                                             |
| claimswax                  | Yes                 | No                   | Allows a user to claim their claimable WAX balance, and use it to buy/stake more sWAX, which results in new sWAX being minted.                                                                                                                                     |
| compound                   | Yes                 | No                   | The compound action claims any WAX rewards for self\_staker, which stakes all swax\_currently\_backing\_lswax. These WAX rewards are used to mint new sWAX, which increases the swax\_currently\_backing\_lswax.                                                   |
| extend\_reward function    | Yes\*               | Yes\*                | Any time the extend\_reward function is invoked, the reward farm will be extended if the current time > periodFinish. The portion of funds that goes to ecosystem incentives will mint new sWAX, and then liquify it, resulting in new lsWAX being minted as well. |
| instaredeem                | Yes                 | No                   | When a user instant redeems their sWAX balance, their previous sWAX balance will be retired.                                                                                                                                                                       |
| liquify                    | No                  | Yes                  | When a user liquifies their sWAX balance, new lsWAX is minted at the current ratio of sWAX/lsWAX. The user's sWAX balance is then moved from swax\_currently\_earning to swax\_currently\_backing\_lswax.                                                          |
| liquifyexact               | No                  | Yes                  | Same outcome as liquify. The only difference is that the user can specify a minimum output amount.                                                                                                                                                                 |
| redeem                     | Yes                 | No                   | When a user redeems their sWAX, they receive WAX, and their sWAX balance is retired.                                                                                                                                                                               |
| instant redeem memo        | Yes                 | Yes                  | Used only internally by the POL contract. When POL instant redeems lsWAX, the lsWAX amount is retired, along with the sWAX that was backing it.                                                                                                                    |
| rebalance memo             | Yes                 | Yes                  | Exact same logic as instant redeem memo, the only difference being that the WAX is sent back to POL with a different memo.                                                                                                                                         |
| wax\_lswax\_liquidity memo | Yes                 | Yes                  | Used internally by POL. When WAX is sent to the dapp contract with this memo, the WAX is used to buy sWAX (minting sWAX), and then liquify it (minting lsWAX). The minted lsWAX is returned to POL.                                                                |
| stake memo                 | Yes                 | No                   | When a user sends WAX with this memo, they receive sWAX at a 1:1 ratio, resulting in new sWAX being minted.                                                                                                                                                        |
| unliquify memo             | No                  | Yes                  | When a user converts their lsWAX back into sWAX, the lsWAX is retired. The underlying sWAX already exists, so no new sWAX is minted.                                                                                                                               |
| lp\_incentives memo        | Yes\*               | Yes\*                | \*Only if the received token was WAX. If WAX was received, new sWAX will be minted 1:1 with the WAX quantity. The sWAX will be liquified, meaning new lsWAX will be minted. The minted lsWAX goes into the incentives bucket for creating farms on Alcor.          |
| unliquify\_exact memo      | No                  | Yes                  | Same as unliquify memo. The received lsWAX is retired, but the underlying sWAX already exists, so no new sWAX is minted.                                                                                                                                           |