Leverage / Leveraged Staking

Introduction

Leveraging, whether it's for amplifying one's exposure or for executing leveraged staking, can be conceptually straightforward but often involves intricate operational steps and daunting parameter settings. However, this function is crucial and essential for both sophisticated DeFi users and beginners.

What is LST (Liquidity Staking Token)

Staking involves "locking up" native tokens to support the security and robustness of the Sui blockchain, rewarding users in return. LST offers liquidity for this "lock up" process. Similar to how Liquidity Providers (LP) on DEXs receive tradeable/transferable LP Tokens, LST in the form of SUI gives "staking SUI" liquidity. Different Forms of LST on the Sui Network include afSUI, haSUI, and vSUI.

What is Leveraged Staking

Leveraged Staking involves incorporating LST into the standard leveraging process. More specifically, it enables users to hold a greater quantity of LST, thereby amplifying their staking profits.