What is MaticX?
MaticX is a liquid staking token developed by Stader, designed specifically for staking activities on the Polygon and Ethereum network. A user's MaticX holdings represent their share of the total MATIC or POL tokens deposited with Stader. When a user deposits MATIC or POL into the Stader staking smart contract, they receive newly minted MaticX tokens based on the Exchange Rate at the time of staking.
How is MaticX minted?
New MaticX tokens are minted only when a user stakes MATIC or POL with Stader via the Stader smart contract for staking. The amount of MaticX minted depends on the current exchange rate.
What is the MaticX exchange rate, and how does it change?
The exchange rate reflects the total value of the Stader staking pool for MATIC and POL, relative to the MaticX tokens in circulation. The exchange rate is calculated as: Exchange Rate = (Total MATIC + POL in the Stader staking pool) / (Total MaticX in circulation) At the time of launch, the MaticX exchange rate was initialized at 1. Over time, as staking rewards are added to the pool, the MaticX-to-MATIC+POL exchange rate gradually increases. Therefore, the exchange rate evolves as more rewards are added, directly impacting the value of each MaticX token in terms of MATIC or POL.
Let's consider a scenario to illustrate this concept:
Suppose, at the time of staking, there are 1000 POL in the Stake Pool and 1000 MaticX in circulation, setting the initial exchange rate at 1 (1000 POL / 1000 MaticX = 1).
Now, after some time, network rewards result in an additional 100 POL being added to the Stake Pool. The Stake Pool now holds 1100 POL, while the circulating MaticX remains at 1000.
We calculate the new exchange rate as follows: Exchange rate (after rewards) = Exchange rate (before rewards) + (Rewards Added / MaticX in Circulation) = 1 + (100 POL / 1000 MaticX) = 1 + 0.1 = 1.1
Thus, the new MaticX-to-MATIC+POL exchange rate becomes 1.1, indicating that each MaticX token now represents 1.1 POL. Therefore, even if you initially staked 1 POL (and received 1 MaticX in return), when you decide to unstake, your 1 MaticX would be exchanged for 1.1 POL, accounting for the rewards added to the Stake Pool.
Where can I use MaticX?
What are the staking and unstaking token conditions for Polygon staking on Stader?
On Ethereum Network:
Staking: Users can stake with both MATIC and POL to receive MaticX.
Unstaking: During unstaking, users will receive tokens only in POL, regardless of whether they initially staked MATIC or POL.
On Polygon Network:
Staking: Users can stake with POL to receive MaticX.
Unstaking: During unstaking, users will receive POL.
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