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.
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.
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