# lsWAX Users can choose to convert their non-transferable sWAX tokens into lsWAX, which is a liquid, transferable token that can be used as capital for other DeFi opportunities. lsWAX started off at a 1:1 ratio with sWAX when WaxFusion was launched. As rewards are generated by the protocol, profits are used to buy back additional sWAX and increase the backing of lsWAX. Therefore, lsWAX is an autocompounding token that allows users to earn staking rewards simply by holding the token in their wallet. As a matter of fact, lsWAX can also be used for providing liquidity against other WAX tokens. Liquidity providers will still earn yield on their lsWAX while having it locked in a liquidity pool. This allows lsWAX holders to earn staking rewards while participating in other ecosystems. In other words, it makes little sense to pair tokens against native WAX now that WaxFusion exists. Why sacrifice your staking rewards to provide liquidity, when you can do both at the same time by using lsWAX in your liquidity pool? To redeem lsWAX, there are 3 choices: * Sell it instantly on the open market, (conversion rate is subject to market conditions) * Unliquify it (convert it back into sWAX) on WaxFusion, and submit a withdrawal request. Withdrawals can take 1-21 days depending on how far into an epoch we are, and how much WAX is available for redemption in the current and upcoming epochs. * Unliquify it and do an instant redemption on WaxFusion, which has a 0.05% fee and is subject to availability based on how much WAX is available in the instant redemption pool. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.waxfusion.io/tokens/lswax.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.