STO
Last updated
Last updated
STO is the governance token that powers StakeStone's omnichain liquidity infrastructure. It serves as the cornerstone of the protocol's governance while creating sustainable value for all participants in the StakeStone ecosystem.
Through a carefully designed vote-escrowed token model (veSTO), STO aligns incentives between liquidity providers, governance participants, and protocols within the StakeStone ecosystem. The token provides utility across multiple dimensions while employing innovative mechanisms to continuously capture value and ensure long-term protocol sustainability.
Converting between STO and veSTO
How to lock veSTO to unlock voting power
Participating in StakeStone's governance
Utilizing the Treasury asset swap mechanism
STO enables multiple forms of utility within the StakeStone ecosystem. By locking veSTO tokens, holders gain voting rights proportional to their locked tokens as well as other benefits, including boosted yield and bribe rewards.
Emission Allocation: veSTO holders vote on the allocation of veSTO emissions across STONE-Fi pools, BTC-Fi pools, and LiquidityPad vaults.
Protocol Parameter Control: veSTO holders influence key protocol parameters, including the amount of platform fees charged and percentage of bribes burned.
Strategic Direction: Governance participants help shape StakeStone's development roadmap and strategic initiatives.
Yield Boosting: Liquidity providers who lock veSTO receive boosted yields on their provided liquidity. For each amount of liquidity deposited, a proportional quantity of veSTO must be locked to maximize yield boosts. If insufficient veSTO is locked, the yield boost applies only to a portion of the deposited liquidity.
Bribe Rewards: veSTO voters earn a portion of bribes from the STONE-Fi pools, BTC-Fi pools, and LiquidityPad vaults they voted for.
veSTO Emissions: When veSTO holders vote on specific pools or vaults for emission allocation, they also secure a proportional claim to the associated veSTO rewards.
Treasury Asset Access: veSTO represents proportional rights to assets in the StakeStone Treasury through the Swap & Burn mechanism.
StakeStone integrates a network of interconnected mechanisms designed to drive sustainable growth for both the protocol and its treasury while ensuring consistent value accrual for STO holders. The Treasury is powered by two revenue streams, complemented by an innovative Swap & Burn mechanism that reinforces long-term value sustainability.
Platform fees, such as exit fees from STONE vaults, SBTC & STONEBTC vaults, and LiquidityPad, will be directed to the Treasury. These fees consist of blue-chip assets such as ETH, Bitcoin, and stablecoins.
Our bribe mechanism creates mutual benefits for protocols seeking liquidity and governance participants. Ecosystem builders and protocols can purchase STO tokens to deposit as bribes into STONE-Fi pools, BTC-Fi pools, or LiquidityPad vaults, creating targeted incentives that attract liquidity where it's most needed.
When STO serves as the bribe currency, a portion is immediately burned upon deposit, generating continuous deflationary pressure that benefits all token holders. A remaining portion flows directly to veSTO holders who directed their votes toward the respective pools, creating a direct economic incentive for active governance participation.
Beyond STO-denominated bribes, the Treasury will take partner ecosystem governance tokens as bribes. This not only provides highly targeted incentives for specific pools but also expands the Treasury's asset diversity. For governance participants, these varied token streams create additional value capture opportunities.
Our multi-token Treasury approach strengthens cross-ecosystem relationships, allowing for diversified rewards to our ecosystem.
StakeStone's governance and tokenomics model is designed to ensure incentive alignment across all stakeholders—from liquidity providers to ecosystem builders and everyday users. At the heart of StakeStone's governance lies the vote-escrowed token model, creating a framework that balances accessibility with long-term commitment. The multi-layered incentive structure rewards meaningful participation, while the deflationary mechanisms provide sustainable value accrual.
As the protocol grows, STO will continue to expand in utility through the very governance mechanisms it enables, allowing the StakeStone community to collectively shape the future of StakeStone's omnichain liquidity infrastructure.
