Thala offers liquid staking for the Aptos blockchain. Thala’s liquid staking derivative follows a two token model, including thAPT and sthAPT. thAPT is a non-rebasing deposit receipt that is pegged to APT at a 1:1 ratio, whereas sthAPT is a rebasing deposit receipt that grows as validator rewards accrue over time.

How it Works:

You deposit your APT tokens into the Thala protocol. The protocol automatically stakes your APT on validator nodes on the Aptos blockchain. You receive thAPT and sthAPT in return. Validator rewards are distributed proportionally to sthAPT holders over time. The value of sthAPT gradually increases to reflect these rewards. You can trade thAPT on DEXes or convert it back to APT at any time.

Liquid Staking Protocol (thAPT):

When you stake your APT tokens on Thala, you receive two new tokens:

• thAPT (Liquid Staking Token): This is a non-rebasing token pegged to APT at a 1:1 ratio. You can freely trade thAPT for APT or vice versa on exchanges, maintaining liquidity for your staked assets.

• sthAPT (Staking Reward Token): This token represents your share of the validator rewards generated by staking your APT. sthAPT rebases periodically, reflecting the accumulated rewards.

Reward Distribution: The total validator rewards are distributed based on the combined supply of thAPT and sthAPT. However, a larger portion of the rewards goes to sthAPT holders, incentivizing users to hold this token for higher returns.

In summary, Thala's liquid staking allows you to:

Earn staking rewards on your APT tokens. Maintain liquidity through thAPT, which is tradable on exchanges. Potentially earn higher returns by holding sthAPT, which accumulates staking rewards.

How can users stake?

Stake: For staking, users can first mint APT token or swap any token to thAPT through swap and receive thAPT token in return. Then stake thAPT and receive sthAPT token in return.

Unstake: For unstake, thAPT token is received in exchange for sthAPT token, which can be swapped through swap or redeem thAPT token from the mint section to convert it to APT. Note: If users want to receive the APT token through redeem, it will take 1 month.