# Tokens

WaxFusion has 2 native tokens - sWAX and lsWAX.  Both of them are fully backed with actual WAX tokens, and started off with a supply of 0.

These tokens are minted on demand when new WAX tokens are deposited into the platform, and destroyed again upon redemption. Therefore, their supply is elastic, and limited to the amount of WAX in WaxFusion's smart contracts.

You can find more details about both tokens using the links in this section.

### Quick Breakdown

|                                               | sWAX                            | lsWAX                                                                                                                                  |
| --------------------------------------------- | ------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------- |
| Transferable                                  | No                              | Yes                                                                                                                                    |
| Autocompounds                                 | No                              | Yes                                                                                                                                    |
| Need To Claim Rewards                         | Yes                             | No                                                                                                                                     |
| Earns Rewards Every Second                    | Yes                             | Yes                                                                                                                                    |
| Can Be Used For Other DeFi Opportunuties      | No                              | Yes                                                                                                                                    |
| Need To Vote For Block Producers              | No                              | No                                                                                                                                     |
| Reward Method                                 | You claim WAX whenever you want | Your lsWAX gets backed by more WAX (autocompounding)                                                                                   |
| Token Balance Changes When Rewards Are Earned | No                              | No                                                                                                                                     |
| WAX Per Token                                 | 1 WAX = 1 sWAX always           | Depends on how much WAX each 1 lsWAX is backed with. As lsWAX gets backed with more WAX, 1 lsWAX always goes up in value against 1 WAX |

And to understand the benefits of WaxFusion, here's another table comparing lsWAX to staking WAX on your own.

|                                    | lsWAX | Staking WAX Yourself |
| ---------------------------------- | ----- | -------------------- |
| Autocompounds                      | Yes   | No                   |
| Need To Claim Rewards              | No    | Yes                  |
| Can Access Your Capital            | Yes   | No                   |
| Need To Vote For Validators        | No    | Yes                  |
| Efficient                          | Yes   | No                   |
| Get Free Resources (CPU/NET)       | No    | Yes                  |
| Earn From CPU Rentals              | Yes   | No                   |
| Earn From Protocol Owned Liquidity | Yes   | No                   |
| Earn While You Unstake             | Yes   | No                   |
| Helps Grow The Ecosystem           | Yes   | No                   |


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