Liquid Staking - lstRZR
This page talks a bit about the lstRZR token.
The lstRZR token is currently deployed on the Sonic chain at 0x67a298e5b65db2b4616e05c3b455e017275f53cb and the source code for it can be found over at Github.
lstRZR is an ERC-4626 compliant liquid staking token (LST) that allows users to stake RZR tokens and receive liquid staking tokens (lstRZR) in return. The vault automatically compounds rewards and implements a unique Harberger tax mechanism with a 130% buyout premium.
All rewards accumulate back into the LST's staked position, which means over time a user continues to see the rate of lstRZR/RZR increase over time.
Key Features
ERC-4626 Compliance: Standard vault interface for deposits, withdrawals, and share calculations
Automatic Reward Compounding: Harvests and compounds staking rewards automatically
Harberger Tax System: Implements a self-declared value system with buyout premiums
Liquid Staking: Users can trade their lstRZR tokens while maintaining exposure to RZR staking rewards
By being compliant to the 4626 standard, this allows multiple other protocols (yield marketplaces, vaults, lending protocols etc...) to easily integrate with the protocol's staking token.
How does the vault handles the staking tax?
Since any token that stakes into the protocol has to pay a 5% harberger tax on it's declared value, the vault is pre-configured to treat all deposits at a 130% buyout premium. This means that:
When you stake RZR into the LST, you declare a value that is 130% of your staked amount
This creates a buyout price that others must pay to acquire your position
Example Calculation: If you stake 100 RZR
Declared Value = 100 × 130% = 130 RZR
Tax Paid = 130 × 5% = 6.5 RZR
Net Staked = 100 - 6.5 = 93.5 RZR
You will get back 93.5 lstRZR (assuming no yield has been auto-compounded into the position).
This pre-configured buyout value can be changed by governance at any point in time.
Technical Specification
The follow sections below describe technically how the 4626 vaults handles deposits and withdrawals.
Deposit Process
During the deposit flow, the protocol will charge a 6.5% tax (which is part of the staking harberger tax) automatically from the user's position.
A sample deposit transaction can be found over here.
function deposit(uint256 assets, address receiver) public returns (uint256 shares)User calls
deposit(100 RZR)Vault calculates net assets after tax:
_netStakeAfterTax(100)For 100 RZR with 130% premium and 5% tax:
Declared value = 100 × 130% = 130 RZR
Tax = 130 × 5% = 6.5 RZR
Net staked = 100 - 6.5 = 93.5 RZR
Vault mints shares based on net staked amount
RZR tokens are transferred to the vault and staked
Withdrawal Process
During the withdraw flow, the protocol will return a NFT position representing a user's stake in the protocol. To get the underlying tokens back, users need to go through a 3 day cooldown.
A sample withdraw transaction can be found over here.
function withdraw(uint256 assets, address receiver, address owner) public returns (uint256 shares)User calls
withdraw(50 RZR)Vault calculates required shares:
previewWithdraw(50)Burns the calculated shares
Splits the staking position proportionally
Transfers RZR tokens to receiver
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