Minting/Retiring sWAX And lsWAX

The table below outlines a list of all actions/transactions that result in sWAX and/or lsWAX being minted or retired.

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.

Last updated