MEME is not just a meme! SUI, a veteran meme coin, has launched LiquiditystakeToken FUDSUI

Recently, Sui, a veteran meme coin associated with fear, uncertainty and doubt (FUD), announced the launch of a LiquiditystakeToken called fudSUI. The name of this token, which has a deeper meaning, has sparked discussion. However, what may be more worth following is that the meme coin, which is defined as nothing, has started to do serious business. Fear, uncertainty and doubt have fired the first shot, but it is uncertain whether it will start a trend. Perhaps we will also see meme LiquiditystakeTokens such as dogeETH, bomeSOL, and so on in the future.

SpringSui is positioned as a new Liquidity stake Token standard

The Decentralized Finance protocol Solend on Solana has built the Decentralized Finance protocol Suilend with the team on Sui. In addition to functions like lending, cross-chain, and trading, they have also launched LiquiditystakeToken SpringSui (sSui). The LiquiditystakeToken standard may be a more comprehensive description of SpringSui, mentioning the technical differences with competitors in the technical documentation.

The logic behind liquidity stake is very easy to understand, basically it is to delegate Token to the protocol party, and stake on the Mainnet. PoS public chains such as Ether, SUI, etc., basically operate in this way. In addition to the Token rewards from the Mainnet itself, the source of income also includes the Token given by the protocol party (whether it is a worthless air Token depends on the Token empowerment of the protocol party).

FUD is a meme coin that existed before the recent meme wave hit SUI. Recently, they announced the launch of LiquiditystakeToken fudSUI, claiming it to be the first meme LiquiditystakeToken. Currently, you can stake SUI on the SpringSui page of Suilend to get fudSUI. However, in fact, fudSUI only uses SpringSui's token standards instead of developing its own protocol.

Is it best to depeg Token by unstaking immediately?

The most feared thing for Liquidity stake Token is the depeg of the value of Token with stake. Spring SUI's solution to this is to activate Liquidity by instantly unstaking, called SIP-33. But can other Liquidity stake protocols not instantly unstake? In fact, this is not a new concept, LST (such as mSOL) on Solana already has similar functionality.

However, Spring SUI claims that its token standard can address the issue of Liquidity, which means that regardless of the Circulating Supply of sSUI, users can instantly convert their tokens back to the underlying SUI.

SpringSui default instant unstake, making a difference from competitors

Compare with competitors, refer to the Liquiditystake mechanism of Haedal and Aftermath. The cancellation of stake in Haedal can be done in two ways, one is to exchange haSui Token for Sui within the protocol, which may incur handling fees and Slippage issues. The other is a regular unstaking process, but it takes time, usually depending on the mainnet Epoch time (usually once every 24 hours).

The mechanism of Aftermath is literally slightly different, but generally it is still similar to Haedal. afSui holders can choose between immediately unlocking the pledge and waiting for the end of the Epoch, but the official also provides the best trading path found through the aggregator (after all, the aggregator is the old business of Aftermath), in simple terms, it is also possible to directly exchange Sui from afSui.

If afSui holder wants to unstake immediately, a fee of 0.91% must be paid. In contrast, only 0.21% is charged for unstaking after the Epoch ends. The biggest difference between SpringSui and its competitors is the default immediate unstaking, which is a greater challenge for Liquidity of the protocol.

The ceiling of MEME, fudSUI is a form of ironic art?

But breaking down the logic behind fudSUI, despite claiming to be the first meme LiquiditystakeToken, it is essentially using SpringSui's Token standards, and using fear, uncertainty and doubt Token as an additional annualized incentive. The Token name fudSUI may be a bit obscure (or mischievous) for believers, but looking at it from another perspective, using a meme coin that is essentially nothing as an annualized reward, is it not a satire of the industry's behavior of pushing up annualized rewards with worthless coins?

This article is not just a MEME meme! The SUI veteran meme coin fear, uncertainty and doubt launched LiquiditystakeToken fudSUI first appeared on ChainNews ABMedia.